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South Dakota Trust Services
Bankers Trust provides South Dakota trust services through our affiliate company, BTC Trust Company of South Dakota. With South Dakota’s flexible statutes, you are able to divide trust management roles to give the right responsibilities to those who have the right skills. This Directed Trust structure gives families the control that is lost in other places.
Aside from the benefits of creating a South Dakota trust, you’ll experience the difference in working with BTC Trust Company of South Dakota. With a focus on relationships, our knowledgeable professionals give you the confidence that your best interests are put first in every interaction. We also have the technical expertise to work with your attorney or other partners, resulting in a smooth and personalized experience that meets your unique situation.
Directed Trust
This structure can be divided into three roles:
- Administrative Trustee – The administrative trustee is a South Dakota Trustee that provides access to South Dakota’s laws, handles the contributions and distributions, and files the required trust tax returns. This role is filled by BTC Trust Company of South Dakota and our team of capable trust administrators.
- Investment Trust Advisor – A person(s) selected by the family manages the assets held in trust. Investment advisors who have been with the family since the beginning can serve in this role, thereby continuing to manage the family investments in the same way they have throughout prior years. The investment selection can be directed, giving wide latitude to the family to decide what type of assets to hold in their trusts. This provides flexibility around concentrated positions, low basis holdings, unique assets, and planning with family business assets.
- Distributions Trust Advisor – Deciding who receives funds, and for what purposes, has created friction with trusts over the years. South Dakota allows families to control the distributions decisions in a manner that recognizes the unique family dynamic. A combination of family, advisors, and even health professionals, can be engaged to fulfill this role.
Asset Protection
Structuring trusts in South Dakota provides a great deal of protection for personal assets from litigious individuals. Trust assets held in Limited Liability Companies (LLC) are not subject to judicial foreclosure. Charging orders are the sole remedy available. BTC Trust Company of South Dakota can help your trust distributions be further protected with proper discretionary distribution provisions, which are specifically provided in South Dakota statutes.
Privacy and Anonymity
Intensely personal decisions are made in trust documents and families’ desire to keep these items private can be respected in South Dakota as well.
Automatic Perpetual Seal
All trusts in South Dakota are automatically sealed in perpetuity. Most states require a court petition and may limit the duration of a seal; however, South Dakota does not leave this to judicial discretion.
Limited Liability Companies organized by the trust can provide additional anonymity, and the trust can serve as the organizer and the registered agent. There are no annual filings, and no public records listing the family connection to the LLC.
Modification and Decanting
Some families have limited their trust planning out of concern that the decisions were too permanent. South Dakota addressed this concern by providing a great deal of flexibility to make changes to trusts. Families can update plans to reflect changes in the economy, laws, and family dynamic. Old trusts that have become difficult to administer can be moved to South Dakota and adjusted to improve management and administrative efficiency.
Incomplete Non-Grantor Trusts / Intentional Non-Grantor Trusts (ING)
The ING trust has recently been a popular planning tool with tremendous flexibility to address a variety of succession planning, wealth management and estate issues. The name itself exhibits its flexibility when used as either an Incomplete Non Grantor trust or as an Intentional Non Grantor trust.
ING trusts have traditionally been used for incomplete gifts and are increasing in popularity for use with directed trusts funded by real estate, private equity, or other unique holding due to the ING’s ability to limit tax. The ING trusts reach their full potential when located in South Dakota due to the state’s opportunities for self-settled trusts, directed trusts, distribution trust advisors, no state income tax and no state capital gains tax.
Contact Us
With our expertise in South Dakota trust services, BTC Trust Company of South Dakota can help ensure your family’s trust is managed and directed in a way that best suits your complex needs. Contact us to learn more or start working with us today.
