Bridgeford Trust to present on “International Private Client Issues for Non-US Residents” Webinar – May 30

Bridgeford Trust is very pleased to be participating in an upcoming webinar – “International Private Client Issues for Non-US Residents” – scheduled for Thursday, May 30, 2019 at 1:00pm EDT. The program is produced by Strafford, a leading education company providing premium CLE and CPE courses designed for planning professionals in over 40 legal, accounting, and tax practice areas.

This webinar will provide tax advisors with a practical guide to the planning opportunities and potential tax pitfalls involved in providing private client services for high net worth non-resident clients with U.S. tax presence. The panel will go beyond the basics to detail intricate strategies for minimizing income tax, including basis strategies for non-U.S. sitused assets, structuring “drop-off” trusts, and planning for the possibility of the nonresident alien’s return to the country of origin.

The panel includes David Warren, Co-Founder and Chairman of the Board of Bridgeford Trust; Patrick McCormick, Principal at Drucker & Scaccetti; and Stephen Williams, Business Advisory Partner at PW Associates. Listen in as they provide a thorough guide to the critical skills and practices of serving high net worth individuals and families through a private client services practice.

The panel will review these and other important issues:

  • What are the key considerations in wealth preservation before a foreign individual becomes a U.S. resident for tax purposes?
  • How to avoid anti-deferral rules in pre-immigration transactions.
  • Determining whether a “drop-off trust” should be structured as a domestic or a foreign trust under the rules of Section 7701.
  • Helping non-U.S. taxpayers identify the optimal framework and structure for a family office to handle U.S. sitused assets.

To learn more and to register, please click here.

Choosing the Correct Jurisdiction: An Objective Comparison

Given recent changes in the tax code, concerns around asset protection and privacy, and the huge influx of international families coming to the United States, selecting the proper U.S. trust jurisdiction in the planning process is more important now than ever. Below is an objective and well-researched chart comparing the leading U.S. trust jurisdictions, with a particular emphasis on areas and planning nuances that distinguish South Dakota as the superior trust jurisdiction in the overall analysis. Click here to view the chart in PDF format and watch the video below to learn more.

Noting that Delaware, long considered to be a leading U.S. trust jurisdiction, is not keeping pace with other progressive U.S. trust jurisdictions, Trusts & Estates Magazine stated in its January 2018 edition that,

“While Delaware has been in the top 4 jurisdictions consistently for the past ten (10) years, we think that its asset protection laws still need to be strengthened for it to remain competitive.”

Alternatively, South Dakota has long been considered to be among the best trust jurisdictions in the nation because of its cutting edge laws around asset protection, dynasty and directed trusts, and privacy.

As illustrated by the shaded areas on the chart, there are six specific areas where South Dakota excels, rendering that state as the overall trust jurisdiction of choice for advisors across the country and around the world. South Dakota is generally regarded by most practitioners and academics, including Steve Oshins, a Nevada attorney, as being the best Dynasty Trust state and having the best Decanting Statute in the nation. Also, South Dakota unequivocally has the most robust privacy laws in the country, as pointed out by a recent article appearing in the January 2018 edition of Trusts & Estates Magazine comparing U.S. trust jurisdictions wherein the authors note,

“Of the top tier trust jurisdictions, South Dakota has the best privacy laws in the nation.”

In addition, South Dakota is one of only three states with a Community Property Trust, a compelling tax planning tool for spouses. Finally, South Dakota is the only state in the nation with a Special Purpose Entity legislation, a powerful planning nuance used in conjunction with directed trusts and trust protectors, and is also the only state with a Family Advisor statute, a non-fiduciary role similar to the trust protector.

For more information about South Dakota’s progressive and industry leading trust laws, click here. Contact Bridgeford Trust via our contact page with any questions or for additional information.

Bridgeford Trust to Sponsor STEP LA’s International Tax & Estate Planning Forum

Bridgeford Trust is excited to be sponsoring the STEP International Tax & Estate Planning Forum: Around the Globe in 2019, presented by STEP Los Angeles. Taking place on Thursday, May 9th and Friday, May 10th in Laguna Beach, CA, this much anticipated event presents the latest issues for international private client planning.

For a myriad of reasons, including asset protection and privacy, international families from around the world are seeking U.S. trust solutions, and looking specifically to South Dakota because of its leading and progressive modern trust laws. Below are links to educational pieces that may be of interest to advisors working in the international space with clients interested in a U.S. trust solution.

Foreign Grantor Trust
http://bridgefordtrust.com/what-we-do/foreign-grantor-trust/

Common Reporting Standard
http://bridgefordtrust.com/common-reporting-standard/

Our team will be attending the forum and if you are going to be there as well, we encourage you to visit Bridgeford Trust’s exhibit booth and talk with us about how we may be able to collaborate to best serve the international community.

We hope to see you there!

The South Dakota Community Property Special Spousal Trust

The South Dakota Community Property Special Spousal Trust is a very compelling and progressive tax planning tool. The trust may be revocable or irrevocable, created by one or both spouses with both spouses as beneficiaries. This is a very powerful state income and estate tax planning tool because it allows married settlors of the trust to avoid state taxation on undistributed retained income within the trust (because South Dakota does not have an income tax) and treats the property as community property at the death of the first spouse, applying a 100% step-up in basis at date of death, therefore, avoiding federal capital gains taxation of marital/trust assets when sold.

To date, there has not been a single challenge from any tax authority relative to the use and tax benefits of Community Property Trusts. 

Click here to review South Dakota’s statute, and click here for an article appearing in the South Dakota Law Review written by Terry Prendergast, leading South Dakota attorney who was instrumental in the drafting and passage of the statute.

The South Dakota Community Property Special Spousal Trust:

  • Avoids federal capital gains taxation of marital/trust assets when subsequently sold. (In non-community property states, the step-up in basis at date of death is only 50%, which means that taxes would be owed on the remaining 50% of the cost basis of the marital property when sold.)
  • Creates a powerful tax move that has the potential to result in compelling federal and state tax savings over subsequent generations by combining its benefits with the federal estate tax benefits of a Dynasty Trust in a jurisdiction that does not have an income tax, such as South Dakota, with the potential to avoid federal estate tax and state income tax on undistributed income forever.
  • May also be created, in appropriate cases, to take advantage of South Dakota’s leading Directed Trust laws and Domestic Asset Protection Trust laws for enhanced protection from creditors.
  • Leverages South Dakota’s privacy laws, considered by most commentators and Trusts & Estates Magazine as the best in the nation.

For more information on the South Dakota Community Property Trust and other powerful modern trust law concepts, please contact Bridgeford Trust via our contact page.

Delivering Direction and Control Podcast Series – Episode 2

Episode 2 is now available on Bridgeford Trust Company’s Delivering Direction and Control Podcast Series! Head on over to our podcast page at bridgefordtrust.com/podcasts to hear the latest episode!

Episode 2 features David WarrenChairman of the Board/Co-Founder of Bridgeford Trust Company and President/CEO of Bridgeford Advisors – and guest speaker, Terry Prendergast – Of Counsel at Davenport, Evans, Hurwitz & Smith, LLP in Sioux Falls, South Dakota – who sit down for Part 2 of a discussion on what drives South Dakota’s position as a top tier jurisdiction. The discussion continues on modern trust law and how it has revolutionized the trust industry, including a focus on privacy and asset protection as well as aspects of South Dakota law that are unique to South Dakota.

Bridgeford Trust Company’s Podcast Series was developed to educate, challenge, and inspire listeners. As we interview experts in the trust planning arena, we will keep listeners updated on developments regarding modern trust law and provide practical discussion on the powerful planning opportunities available to advisors around the country and the world – all in an effort to deliver far more direction and control to clients and their advisors than ever before.

We hope you enjoy Episode 2!

Bridgeford Trust to Sponsor 15th Annual International Estate Planning Institute

Bridgeford Trust is very pleased to be sponsoring the 15th Annual International Estate Planning Institute, presented by The New York State Bar Association and The Society of Trust and Estate Practitioners USA (STEP USA).

Taking place on Thursday, March 14 and Friday, March 15 at the Crowne Plaza Times Square in NYC, this Institute is a much anticipated annual event at which trust and estate practitioners, bankers, and accountants from around the world gather to hear leaders in their fields exchange ideas and discuss developments regarding cross-border planning with a U.S. component. As more and more international families are seeking U.S. trust solutions, Bridgeford Trust is excited to be sponsoring the event. Below are links to informational pieces that may be of interest to advisors working in the international space.

Foreign Grantor Trust

English – http://bridgefordtrust.com/what-we-do/foreign-grantor-trust/
Spanish – http://bridgefordtrust.com/wp-content/uploads/2018/08/Foreign-Grantor-Trust-Espanol.pdf

Educational Brochure, outlining powerful planning options under South Dakota law

English – http://bridgefordtrust.com/wp-content/uploads/2019/01/Bridgeford-Educational-Brochure.pdf
Spanish – http://bridgefordtrust.com/wp-content/uploads/2018/10/Bridgeford-Overview-Espanol.pdf

Our team will be attending the Institute and if you are going to be there as well, we encourage you to visit Bridgeford Trust’s exhibit booth and talk with us about how we may be able to collaborate to best serve the international community.

For additional details about the Institute and to register, click here. We hope to see you there!

Bridgeford Trust Company Launches Podcast Series

Bridgeford Trust Company is excited to share the launch of our Podcast Series which was developed to educate, challenge, and inspire listeners. As we interview experts in the trust planning arena, we will keep listeners updated on developments regarding modern trust law and provide practical discussion on the powerful planning opportunities available to advisors around the country and the world – all in an effort to deliver far more direction and control to clients and their advisors than ever before.

Start listening to our Podcast Series – Delivering Direction and Control – today by visiting: bridgefordtrust.com/podcasts.

Episode 1 features David WarrenChairman of the Board/Co-Founder of Bridgeford Trust Company and President/CEO of Bridgeford Advisors – and guest speaker, Terry Prendergast – Of Counsel at Davenport, Evans, Hurwitz & Smith, LLP in Sioux Falls, South Dakota. In this episode, David and Terry discuss what drives South Dakota’s position as a top tier jurisdiction. They take a look at aspects of modern trust law and how they have revolutionized the trust industry, including a focus on decanting and how trusts are modernized.

As a subscriber of our blog, you’ll automatically receive notifications when new episodes are added. We hope you enjoy Episode 1!

South Dakota’s Decanting Statute Is Ranked, for the 6th Time, As Best In The Nation

South Dakota is again ranked, for the 6th consecutive year, as having the top decanting statute in the nation! Published by Nevada attorney Steve Oshins, the new 6th Annual Trust Decanting State Rankings Chart is an excellent resource for advisors and clients because of his 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. Appropriately referred to as a “do over,” decanting essentially distributes assets from an irrevocable trust into a new trust with different, and presumably more desirable and flexible terms, leaving the unwanted terms in the original trust and not binding on the assets. Decanting is also a streamlined option for easily transferring a trust from one state jurisdiction to another more favorable jurisdiction, such as South Dakota, with directed and asset protection trust statutes.

Steve Oshins’ findings regarding South Dakota’s decanting statute is particularly compelling when considered in conjunction with the fact that South Dakota…

  • Is generally regarded by most practitioners and academics, including Steve Oshins, as being the best Dynasty Trust state.
  • Unequivocally has the most robust privacy laws in the country, as pointed out by an article appearing in the January 2018 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 tax 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 a more detailed discussion about decanting and how it modifies irrevocable trusts that were once considered unchangeable, click here for a video on the concept and how it works in the planning process.

Please contact Bridgeford Trust via our contact page if you have any questions on decanting and the power of the South Dakota advantage.

Domestic Asset Protection Statutes; South Dakota ranked in the Top Tier, Delaware, Wyoming and Alaska considered Second Tier

Domestic Asset Protection Trusts, available only in a small number of states (17), are a formidable planning strategy that legally shields assets from third party liability (including spouses in a divorce proceeding) and lawsuits while permitting settlors (the person establishing the trust) to retain some control over the trust assets and enjoy a discretionary benefit during their lifetime. South Dakota has one of the oldest and most progressive self-settled domestic asset protection provisions in the United States. With its two year “look back” fraudulent conveyance statute, South Dakota’s is among the shortest in the country (Delaware has a four year fraudulent conveyance statute).

In a December 2018 issue of Trusts & Estates Magazine, authors Mark Merric, Daniel G. Worthington, Paul MacArthur, and John E. Sullivan closely and objectively examined domestic asset protection trust statutes in the context of various factors including a state’s discretionary support statute and alter-ego statute. South Dakota is the only state appearing in the first tier in both areas.  Based upon a thorough analysis of these, and other factors, the authors concluded that South Dakota is a top tier domestic asset protection trust jurisdiction, while Delaware, Wyoming, and Alaska are considered second tier jurisdictions. This well supported and objective conclusion again accentuates the vital importance of selecting the proper trust jurisdiction in the planning process. Click here for the full article: “Best Situs for DAPTs in 2019.”

Trusts & Estates Magazine’s findings regarding South Dakota’s domestic asset protection trust statute are particularly compelling when considered in conjunction with the fact that South Dakota…

  • Is generally regarded by most practitioners and academics, including Steve Oshins, a Nevada attorney, as being the best Dynasty Trust state and having the best Decanting Statute in the nation.
  • Unequivocally has the most robust privacy laws in the country, as pointed out by an article appearing in the January 2018 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 tax 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 on domestic asset protection and other modern trust laws, please contact Bridgeford Trust via our contact page.

Bridgeford Trust – Sponsor at the 53rd Annual Heckerling Institute on Estate Planning

Bridgeford Trust is excited to be sponsoring the 53rd Annual Heckerling Institute on Estate Planning from January 14-18, 2019 in Orlando, Florida.

If you are attending Heckerling this year, we encourage you to visit with us at our exhibit booth (Booth 400), enter to win a pair of Apple Airpods, AND attend two dynamic receptions that we are sponsoring!

Bridgeford Trust Reception – January 15, 2019

Join us on Tuesday, January 15th from 6:00pm – 7:00pm for a reception located right on the hotel grounds.

The evening will be a great time of food, spirits, and networking with friends and colleagues. And, we are especially excited to partner with Akerman and Berkowitz Pollack Brant, who will be sponsoring our event this year. Click here to RSVP.

South Dakota Trust Association Reception – January 16, 2019

On Wednesday, January 16 from 5:45pm – 7:30pm, we hope to see you at the SDTA’s cocktail reception that we are also sponsoring! This reception has developed into one of the conference’s premier events and is taking place from 5:45pm – 7:45pm in Grand Ballroom 8B at the Orlando World Center Marriott. Click here to view more details and to register.

 

Keep up-to-date with our activity at Heckerling, by visiting www.bridgefordtrust.com/heckerling2019.

If you have any questions or would like to set up a time to meet with our team, please feel free to contact Melissa Roberson, Marketing Director with Bridgeford Trust Company at mroberson@bridgefordtrust.com.

We look forward to seeing you in Orlando!