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Can Non-Residents Establish Trusts in South Dakota?

It’s a common question that we hear from families, trustees, attorneys and financial advisors – “can non-residents create trusts in South Dakota?”

It’s not an unreasonable question. And the simple answer is – yes.

Most families who are thinking of creating a trust – or who have an existing trust – likely created that trust within the state that they currently reside in (or resided within previously).

In the world of estate planning and asset protection, trusts shine as powerful tools offering a wealth of benefits.

Your goal is to make the right decision about where to establish your trust.

Among the jurisdictions renowned for their favorable trust laws, South Dakota emerges as a top choice for trust formation. 

Exploring South Dakota Trusts

South Dakota boasts progressive trust laws and a tax-friendly environment, making it an appealing destination for establishing trusts. Its legal framework provides numerous advantages:

  • No State Income Tax: South Dakota spares trusts from state income tax burdens, offering significant tax savings.
  • Directed Trusts: Permitting the creation of Directed Trusts, South Dakota provides a unique level of customization in trust management. In a Directed Trust, the grantor can appoint different individuals or entities to fulfill specific roles within the trust structure. This allows for a tailored approach to asset management, investment and distributions decisions, and other aspects of trust administration.
  • Asset Protection: Robust asset protection laws safeguard trust assets from creditors and legal entanglements. Overall, trusts are a great way to protect assets.
  • Privacy: South Dakota prioritizes confidentiality by not mandating the disclosure of trust documents or beneficiary details to the state.
  • Flexible Trust Administration: The state allows for perpetual trusts, enabling families to establish trusts that can last for generations without the constraints imposed by the rule against perpetuities in many other jurisdictions

Can Non-Residents Establish Trusts in South Dakota?

Absolutely. You have the option to establish and manage your trust in the state of South Dakota, irrespective of whether you or your beneficiaries reside within its borders.

This allows individuals to access the benefits of South Dakota trust laws without the necessity of relocating across state lines.

Benefits for Non-Residents

Non-residents stand to gain the same advantages and protections as residents when establishing trusts in South Dakota.

Whether focused on estate planning, asset protection, or tax optimization, the state offers a conducive legal framework to fulfill their objectives.

Partnering with Independent Trust Company

Independent Trust Company stands out as a trusted provider of trust and fiduciary services, specializing in South Dakota trusts.

With a deep understanding of South Dakota trust law, they offer:

  • Tailored Solutions: Crafting customized trust solutions to address specific goals, preferences, and circumstances.
  • Efficient Trust Administration: Managing administrative tasks with precision, ensuring smooth trust operations.
  • Commitment to Client Service: Prioritizing open communication, transparency, and responsiveness to foster strong relationships built on trust and mutual respect.

South Dakota trusts offer unparalleled advantages for residents and non-residents alike. With the expertise of Independent Trust Company in trust formation and administration, clients can confidently achieve their estate planning and asset protection goals.

To learn more about how Independent Trust Company can assist in creating a trust in South Dakota, contact us today. Your journey towards securing your financial future begins here.

If you are ready to take advantage of South Dakota trust law, contact us today.

The Independent Trust Company can help you select the right trustee for your family’s legacy for years to come.

We are a South Dakota Trust Company helping families succeed with generational wealth transfers by preserving their assets – as well as their legacy. 

Please contact us here to begin the process. Or please call us at (605) 737-5100.