Bridgeford Trust recently participated in a “Trust Jurisdiction Showdown” panel discussion at The Gathering, a 3-day educational conference produced by the Laureate Center for Wealth Advisors in San Diego, California. This 12th annual gathering featured experts speaking on topics in the areas of estate, business, and wealth strategies, drawing registrants from across the nation. The panel included representatives from various leading trust jurisdictions including South Dakota, Nevada, Wyoming, and Alaska. The debate was spirited and very informative, focusing on attributes of each state’s trust laws. At the center of the discussion was a well-researched chart comparing the leading U.S. trust jurisdictions, with a particular emphasis on areas of trust law that clearly distinguishes South Dakota as the superior trust jurisdiction in the overall analysis. Click here or on the image below to view the chart in PDF format.
The South Dakota Community Property Special Spousal Trust: A Compelling State and Federal Tax Planning Tool
Proving once again South Dakota’s status as a top tier trust jurisdiction AND the vital importance of proper situs selection in the wealth planning process, South Dakota’s Governor Dennis Daugaard just recently signed a progressive new legislation which unanimously had passed both the South Dakota House and Senate creating the South Dakota Community Property Special Spousal Trust – House Bill 1039 (2016) (Sections 29-42). The trust may be a revocable or irrevocable trust created by one or both spouses with both spouses as beneficiaries.
Modern trust laws, available in progressive trust jurisdictions such as South Dakota, have drastically changed the trust and wealth planning landscape bringing far more control and flexibility to settlors, advisors, and beneficiaries than ever before. Concepts such as the directed trust, decanting, and the trust protector have tremendously changed traditional notions around irrevocable trusts, and how they are drafted and administered. Click here for a detailed description of these modern trust laws, and a discussion around the huge impact they are having on modern wealth planning.
Bridgeford Trust will be presenting at the upcoming Global Financial Summit, an exclusive, private wealth conference taking place at the Atlantis Resort & Casino in the Bahamas from March 16-19. The conference is produced by noted economist and award-winning financial advisor, Mark Skousen, and includes presentations from an elite team of highly successful wealth managers, financial gurus, economic forecasters, and geo-political analysts. Presenters will offer an experienced perspective on wealth-building and asset protection, offshore investing opportunities, financial privacy, and investment strategies. Featuring some of the biggest names and most insightful advisors in the wealth management world, David Warren, President and CEO of Bridgeford Trust, is honored to be included as one of this year’s speakers.
South Dakota is once again ranked, for the third time in a row, as having the top decanting statute in the nation! Published by Nevada attorney Steve Oshins, the new 3rd Annual Trust Decanting State Rankings Chart, is an excellent resource for advisors and clients because of Oshins’ methodical and objective approach to evaluating the factors that impact the viability of a state’s decanting statute. The concept of decanting has become a very powerful tool for planners to modify irrevocable trusts and has emerged as one of the most progressive planning strategies available in dealing with dynasty planning issues.
Bridgeford Trust Company will be attending the 50th Annual Heckerling Institute on Estate Planning from January 11-15 in Orlando, Florida and co-sponsoring a cocktail reception on January 13 celebrating the power and sophistication of South Dakota’s trust laws. If you are attending Heckerling this year, we encourage you to join Bridgeford Trust and advisors from around the country and the world for “A Tale of Two Dynasties”, a great informational event and networking opportunity. David Warren, President and CEO and Terry Harris, Chairman, Board of Directors of Bridgeford Trust and other representatives from our South Dakota office will be there to greet you! To learn more and to register for this exclusive reception, click here! We hope to see you there!
Commentators and advisors continue to debate whether offshore asset protection trusts, available in jurisdictions such as Nevis and the Cooks Island, are better asset protection vehicles than U.S. domestic asset protection trusts, available in a small number of states including South Dakota. The debate is typically fueled by esoteric legal distinctions and hyperbole or, more commonly, based upon a subjective planning bias of the particular advisor. Unfortunately, the debate does not always serve a client interested in obtaining asset protection well, as they are often left confused and uncertain as to what is the best option. However, a South Dakota statute appears to create the opportunity to bring both offshore and domestic asset protection strategies together in one trust instrument, thereby providing a solution that brings the “best of both worlds” to the asset protection planning space.
This webinar entitled “Taxation of Trusts and the Vital Importance of Selecting the Proper Trust Situs” was originally produced on Thursday, November 19, 2015. We hope that you enjoy the full recording of the presentation and additional resources offered below. This webinar was hosted by David Warren, Bridgeford Trust Company President and CEO. This presentation examined the progressive trust jurisdictions that allow trusts to “live in perpetuity” and that do not tax trusts at the state level. The presentation discussed how these progressive trusts present compelling tax planning opportunities for clients, underscoring the vital importance of considering alternative trust jurisdictions in the wealth planning process. This webinar also focused on taxation of trusts among the states and discussed a developing trend in the case law that supports the fact that “resident trusts”, trusts established in a jurisdiction that does not tax retained income in trust, can no longer be taxed by the home state (the state where settlor or beneficiaries reside) and, to do so, violates the Commerce Clause of the United States Constitution. Watch or listen to a recording of the presentation below.
David Warren, President and CEO of Bridgeford Trust, is going to be featured on WEEU 830AM on Tuesday, December 1, 2015 from 6:00pm-7:00pm. Virgil Kahl hosts the area’s only locally-produced financial talk show, The Money Doctor, on WEEU which is based in Reading, PA. WEEU 830 AM can be heard throughout several counties in southeastern PA, plus areas of New Jersey, Delaware, and Maryland. David will be speaking on emerging trust topics and the importance of trust jurisdiction in the wealth planning process. In particular, he will present a clear comparison of important factors that should be considered when selecting proper trust jurisdiction, such as taxation, asset protection, and privacy. Be sure to mark your calendar and tune in! You can also listen live at http://weeu.com/.
Trust Situs Matters: Delaware vs. South Dakota and the Vital Importance of Selecting the Correct Trust Jurisdiction
The chart below, produced by Bridgeford Trust Company based upon objective industry data and research, presents a very clear comparison of important factors that should be considered when comparing South Dakota and Delaware as a potential trust jurisdiction. These factors are particularly important for planners to consider when determining the most robust dynasty trust state. Of particular interest is how South Dakota compares to Delaware in the areas of: asset protection, privacy, and the existence of the special purpose entity. The chart below accentuates the vital importance of considering alternative trust jurisdictions in the wealth and trust planning process and also clearly demonstrates that South Dakota is a superior trust jurisdiction.