South Dakota Trust Company LLC

Member Description

With currently more than $10 billion in assets under administration, South Dakota Trust Company LLC (SDTC) offers pure trust administration without any product, working with whomever the client or advisor wishes regarding investments, insurance and custody. Additionally, SDTC also administers trusts with non-financial assets, e.g., LLCs, FLPs, closely-held stock, real estate and off shore entities. As a result of South Dakota’s competitive and unique trust, asset protection, income tax, and private family trust company laws, SDTC works with families all over the globe, serving as trustee, as well as, corporate and/or trust agent for family-owned private trust companies.

SDTC currently works with over 70 billionaire and 200 centa-millionaire clients who have chosen SDTC due to the following:

  • Highest ranked Trust jurisdiction in the U.S. (#1 in all categories) by Trusts & Estates magazine (1/12)
  • Tax favored trust situs (no state income or capital gains tax)
  • Outstanding, timely, and inexpensive reformation/modification and decanting processes/statutes
  • Excellent asset protection
  • Modern and unique trust statutes
  • Customized trust administration
  • Quality personalized service
  • Unique and creative advice
  • Reasonable fees

SDTC specializes in trust administration of trusts established pursuant to South Dakota law, as well as trusts of other states moved to South Dakota (i.e. change of situs trust). All of the above listed advantages and services are available through SDTC without the necessity of either the trust grantor or the beneficiaries having to visit, reside or even fly over South Dakota.

What makes SDTC unique?

Most trust companies in the industry typically provide investment services, first and foremost, and offer trust administration services as secondary, auxiliary services to their investment products. In addition, many times a corporate fiduciary will restrict and/or limit investment flexibility, and demand or eventually seek total control in carrying out all of the trustee functions, i.e., trust administration, investments, accounting, etc.  On the contrary, SDTC works exclusively with a family’s outside, trusted investment/insurance managers and advisors, creating a “best of class,” extremely flexible model. In this relationship, each professional sticks to their own area of expertise (i.e., investments, accounting, trust administration, etc.).  Our clients are able to retain long-standing and comfortable relationships with their current investment advisors and maintain these associations when it comes to their trust investments.  By choosing SDTC, these families are also free to replace and/or supplement these advisors with managers of their own choosing as their investment goals and desires change.  SDTC’s experienced trust officers act as relationship managers, customizing trust services individually for each client and supplementing/facilitating communication with the trust grantor, the beneficiaries and the other investment, legal and tax advisors. SDTC’s business model was built on flexibility and family customization, positioning the needs and desires of our clients first.

 Planning Strategies:

SDTC’s founders and its employees have advised more than 25% of the Forbes 400 and are currently working with over 70 billionaires and over 200 centamillionaires. In working with these families, as well as with other wealthy families and their advisors across the country, SDTC has seen many creative and cutting-edge estate planning and trust strategies.

Our experience with most of the top lawyers, accountants, insurance agents, and investment mangers across the country, allows us to identify trends among similarly wealthy families without, of course, divulging any private information. Decisions can then be made by a family after analyzing an estate plan with the client’s advisors from both a tax and non-tax point of view. SDTC thoroughly recognizes the needs of its clients and develops a strong, successful and personal relationship with its clients lasting in perpetuity.

If you have any questions or would like to request additional information about any information discussed herein, please do not hesitate to contact SDTC at any time at 212-642-8377. 

 

 

Resources

Video

Trust & Estates video with Al King where he discusses new planning opportunities that were created by the 2010 Tax Act.

Products

SDTC is the industry leader in establishing and operating Private Family Trust Company’s (PFTC) for families. SDTC can serve as both Corporate and/or Trustee Agent by assisting a family with the formation and operation of a PFTC in South Dakota by providing the family with the necessary office space, local Board membership, as well as assistance with regulator/compliance issues, trust administration, trust accounting and/or custody services.  The PFTC can then work with the non-South Dakota Family Office pursuant to a service agreement to provide additional services to the...

As a result of its favorable insurance laws as well as the lowest state premium tax in the U.S. (i.e. 8 basis points or 8/100ths of 1% compared to the national average of 200 basis points (Delaware and New York- 200, California 235, Nevada-350, Florida- 175), SDTC administers all types of insurance trusts and LLCs.

 

SDTC serves International Families worldwide with the following types of trusts:

 

  • Non-Resident Alien (NRA) Dynasty Trust
  • Standby-Dynasty Trust (receptacle for Pour-Over from a foreign trust)
  • Foreign Grantor Trust holding offshore entities
  • Foreign Law Trust

 

South Dakota has extensive laws that cater to International Families. 

 

South Dakota’s favorable tax, trust and asset protection laws make it one of the top domestic asset protection jurisdictions. South Dakota is the only state that has all of the follow asset protection laws:

 

  • Self-settled trust statute with two years fraudulent conveyance
  • Sole remedy charging order protection for LLCs and LPs
  • Statute codifying that a discretionary interest in a trust is not a property right
  • Spendthrift protection
  • Total seal privacy for all trust matters in perpetuity
  • Reimburse trustee if sue...

South Dakota has been an unlimited duration Dynasty state since 1983, prior to the modern GST Tax (1986). South Dakota’s statute is based upon the 1979 Murphy case in which the IRS acquiesced in for an unlimited duration trust basically following the “suspension of the power to alienate” combined with the abrogation of the Common Law RAP.  Consequently, South Dakota is the Dynasty Trust jurisdiction of choice for many wealthy families. Most other states did not adopt their Dynasty statutes until 1995 or after, and do not follow...

With newly drafted South Dakota law trusts, SDTC can act as “directed” administrative trustee, leaving the family and their advisors as the investment and distribution advisors, committees, fiduciaries and/or trust protectors. This allows the family to work with their existing investment and/or insurance advisors and lessen their own liability. Additionally, SDTC can serve as successor trustee or co-trustee for existing trusts looking to move to South Dakota for its trust and tax benefits. SDTC can “delegate” investment responsibility...

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