South Dakota: A Wealth & "Trust Friendly" State

Explore the benefits of establishing a trust in South Dakota State!

First PREMIER Bank: A Leader in Trust Services

The unique laws of South Dakota create a favorable environment for wealth, estate and trusts. Harness these benefits and more by working with First PREMIER Bank Trust Services. We manage $2.8 billion in trust assets, helping individuals, families, businesses, non-profits, foundations and endowments.

Unique Benefits of a South Dakota Trust

As such, First PREMIER bank can help you or your client access our favorable tax and trust laws! First PREMIER Bank can help our clients leverage favorable South Dakota tax and trust laws.

The impact is increased revenue for distribution to beneficiaries of irrevocable trusts with a South Dakota situs.

Most states require a trust to “terminate” at the end of a set period of time (effectively 80 to 100 years). This opens the trust to taxation, potential litigation and disagreements among beneficiaries, etc. Families with substantial wealth may want to see the trust “go on forever.” That can only happen in a state that has no rule against perpetuities - like South Dakota. Trust administration can be delegated to co-trustees and/or agents of the trustee.

Trustees may disclaim powers granted to a trustee under a trust instrument. A South Dakota trustee can “unbundle” services that the family would prefer to see performed by others, allowing tasks or services to be managed by co-trustees. Services could include investment management, custody of assets, record keeping, etc.

South Datota Directed Trust Law permits protectors and trust advisors, and fiduciaries can be prevented from exercising certain powers that can be reserved to the grantor, a trust protector or a trust advisor.

First PREMIER Trust Services

Personal Trust Services

Ensure your estate transfers seamlessly and according to your wishes, easing the transition of loved ones at a difficult time. Learn more about personal trusts from First PREMIER Bank.

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Business Trust Services

First PREMIER Bank works with business owners and their teams, including accounting, legal and advisors to help with estate and business contingency planning.

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Dynasty Trusts

A unique, generation skipping trust that can be established to provide financial security for future generations. Most states enforce time limits on the duration of trusts. However, in the state of South Dakota, Dynasty Trusts have no limit on perpetuity.

Contact Trust Services Today

Speak with a Trust Specialist today to learn how First PREMIER can

assist with proactive estate planning and trust services.

Special Needs Trusts

Description

A Special Needs Trust permits certain South Dakota residents with disabilities under the age of 651 to establish an account holding their own funds to preserve eligibility for Medicaid, Social Security and/or government benefits - without the transfer penalties normally accessed.2

Benefits
  • Elimination or reduction of fees and costs2
  • Separate accounts ensure accurate accounting
  • Spendthrift provisions to protect assets against creditor claims against a beneficiary
  • Mandatory Medicaid payback managed for you3
  • Distribution of remaining funds after a beneficiary's death4

Disclosures

{1} Qualified individuals must be under the age of 65 as approved by the rules of special needs trust, the court and trustee.

{2} Funding a beneficiary’s account does not result in “transfer penalties”  for Medicaid eligibility purposes and, once assets are held in a account, they are not considered available resources for purposes of most means-tested government benefits (e.g. Medicaid and SSI).

{3} Medicaid Payback is required to the extent that the beneficiary received Medicaid Long Term Care benefits prior to death.

{4} Funds remaining after a beneficiary’s death and any required Medicaid payback are distributed to heirs or loved ones identified in the beneficiary’ joinder agreement.

Investments are | Not FDIC insured | May lose value | Not financial institution guaranteed | Not a deposit | Not insured by any federal government agency. Advisory services may only be offered by investment adviser representatives.