Directed Trusts, only available in a handful of states across the country including South Dakota, continue to drastically change the trust world through unbundling asset management and trust administration functions, putting control back into the hands of settlors, beneficiaries, and their advisors. Through bifurcating liability, the directed trust model creates a legal framework allowing trustees and beneficiaries to work with asset managers and independent trust companies of their choosing.
Click here for an article appearing in Worth Magazine and featuring Bridgeford Trust’s President and CEO, David A. Warren, JD, discussing the nuances of this powerful planning tool. You can also click here for a detailed discussion around how the directed trust concept works to empower settlors, beneficiaries, and their advisors while revolutionizing the trust and wealth management industry.
South Dakota’s directed trust statute is considered to be the most progressive in the nation. This is particularly compelling when considered in conjunction with the fact that South Dakota…
- Is generally regarded by most practitioners and academics, including Nevada attorney, Steve Oshins, as being the best Dynasty Trust state in the nation.
- Unequivocally has the most robust privacy laws in the country, as pointed out by an article appearing in the January 2016 edition of Trusts & Estates Magazine comparing U.S. trust jurisdictions wherein the author noted, “Of the top tier trust jurisdictions, South Dakota has the best trust privacy laws.”
- Is one of only two states with a Community Property Trust, a compelling tax planning tool for spouses.
- Is the only state in the country with the Family Advisor, referred to as a “Trust Protector Light.”
- Has one of the lowest insurance premium taxes in the nation at 8 basis points.
When all of these attributes are considered in the aggregate, South Dakota clearly emerges as the superior trust jurisdiction in the nation. Click here for a well-researched chart comparing the leading U.S. trust jurisdictions, with a particular emphasis on areas that clearly distinguish South Dakota as the superior trust jurisdiction in the overall analysis.
For more information about directed trusts, please contact Bridgeford Trust via our contact page.