The State of South Dakota was, once again, selected by the magazine Trusts & Estates as the best jurisdiction for establishing trusts in the U.S.A., followed by the States of Wyoming, New Hampshire, Tennessee, and Ohio. In its assessment, the magazine considers a variety of target aspects for its ranking, such as the existence of modern laws and statutes for protecting assets, and migratory effects, among other considerations.  

To preserve its trust-favorable environment, South Dakota has adopted a proactive approach by developing a consolidated number of modern trust laws. Such legal regulations allow for an increased flexibility in the management, modification and reform of trusts.

The key elements include:

  • Excellent legislation relative to trade and corporations.
  • Non-applicability of taxes on bank transactions and transactions taking place outside the territory.  
  • No need to inform data about End Beneficiaries, which proves adequate for CRS (“Common Reporting Standard”) structures.
  • No personal income tax, and no taxes on partnerships.  
  • 4% VAT and low property taxes.  
  • Favorable inheritance and unemployment taxes.

South Dakota has one of the strongest asset protection laws in the U.S.A., by virtue of which the beneficiaries of discretionary trusts hold no rights in rem regarding the trust funds, but rather mere expectations. Therefore, the assets involved may rest beyond the reach of possible creditors.

At Untitled, we work with South Dakota as a jurisdiction where we offer Trustee services by means of our affiliate Untitled Fiduciary Services LLC.