Bridgeford Trust to Sponsor STEP Orange County’s 2020 Conference

Bridgeford Trust is excited to be sponsoring the 9th Annual Institute on Tax, Estate Planning and the World Economy, presented by STEP Orange County. Taking place on February 3rd and 4th in Newport Beach, CA, this much anticipated conference presents the latest issues for U.S. and 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
https://bridgefordtrust.com/what-we-do/foreign-grantor-trust/

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

Our team will be attending the conference 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.

STEP is a global professional association for advisors specifically specializing in family inheritance and succession planning in the international space. STEP works to improve public understanding of issues facing international families, promote education, and strongly encourage very high professional standards among their members and practitioners. To learn more about STEP, click here.

If you would like additional details about the event, visit the conference website at https://stepoc.org/2020-institute/.

In case you missed it…

Join Bridgeford Trust Company, along with Venable LLP and Coastal Bridge Advisors, after the STEP OC conference for a very timely and highly informative multidisciplinary presentation with advisors and professionals, all of whom routinely advise families on powerful state tax planning strategies. Our presenters will examine the evolution of case law and tax regulation, with a specific focus on practical and applicable information on compelling state tax planning concepts that participants can include in overall wealth planning.

This presentation will be available on the following dates and in the following locations. Click on the links below to register today!

Wednesday, February 5 – Los Angeles, CA

Venable’s office at 2049 Century Park East, Suite 2300, Los Angeles, CA 90067
CLICK HERE TO REGISTER

Thursday, February 6 – San Francisco, CA

Venable’s office at 101 California Street, Suite 3800, San Francisco, CA 94111
CLICK HERE TO REGISTER

The events will begin at 5:00 p.m. The presentation (approved for CLE and CPE) will take place from 5:30 p.m. to 7:00 p.m., and a networking reception will follow until 8:00 p.m. Contact us via our contact page with any questions. We look forward to seeing you in California!

Bridgeford Trust to present “State Tax Planning Using Trusts” in California – February 5th and 6th

In light of changes in the federal tax code and recent favorable tax cases, state tax planning using trusts has emerged as a powerful tool; this was most recently affirmed and validated by the Supreme Court’s unanimous decision in the Kaestner case and the Court’s Denial of Cert. in the Fielding case. Simply by selecting the proper trust jurisdiction (a no income tax state), taxpayers in high income tax states can avail themselves of compelling state tax savings – particularly in the areas of taxation on undistributed trust income and capital gains tax on the sale of low-cost basis assets, such as closely held stock and property.

Join Bridgeford Trust Company, along with Venable LLP and Coastal Bridge Advisors, for a very timely and highly informative multidisciplinary presentation with our advisors and professionals, all of whom routinely advise families on powerful state tax planning strategies. Our presenters will examine the evolution of case law and tax regulation, with a specific focus on practical and applicable information on compelling state tax planning concepts that participants can include in overall wealth planning.

This presentation will be available on the following dates and in the following locations. Click on the links below to register today!

Wednesday, February 5 – Los Angeles, CA

Venable’s office at 2049 Century Park East, Suite 2300, Los Angeles, CA 90067
CLICK HERE TO REGISTER

Thursday, February 6 – San Francisco, CA

Venable’s office at 101 California Street, Suite 3800, San Francisco, CA 94111
CLICK HERE TO REGISTER

The events will begin at 5:00 p.m. The presentation (approved for CLE and CPE) will take place from 5:30 p.m. to 7:00 p.m., and a networking reception will follow until 8:00 p.m.

We look forward to seeing you there!

Bridgeford Miami – Launch Event on January 22

Bridgeford Miami

David A. Warren, Co-Founder and Chairman of Bridgeford Trust Company and President and CEO of Bridgeford Advisors (dba Bridgeford) ­­— a sister company of Bridgeford Trust Company providing powerful trust planning to wealthy families across the United States and around the world — is extremely proud and enthusiastic to announce the launch of Bridgeford Miami! The Bridgeford Miami office is located at 1221 Brickell Avenue, Suite 900, Miami, Florida 33131 in the heart of Miami’s financial district, referred to as “Wall Street South” by Forbes Magazine.

Recently approved by the Florida Banking regulators for representative offices in Florida, Bridgeford’s expansion into South Florida is a natural progression given our company’s extensive work with advisors in the region and deep commitment to serving U.S. families, as well as Latin American and international families coming to the U.S. Since Bridgeford does not manage assets, and no trust administration will occur in Florida, Bridgeford is an integral partner for advisors and international families who have a desire to avail themselves of the power, sophistication, and flexibility of U.S. and in particular, South Dakota modern trust law — considered the best in the nation by many advisors and commentators around asset protection, privacy, and prudent tax planning.

To learn more about the power of South Dakota trust law, click here for a detailed information piece in English and click here for Spanish.

Many international trust companies have come to the U.S. and obtained trust powers in an attempt to capture the business of international families coming to America, with little understanding of U.S fiduciary law or regulatory requirements. However, Linda M. Voller, CTFA, incoming Bridgeford Trust Company President and CEO, who oversees all trust administration and corporate governance from our two offices in South Dakota, states,

“Bridgeford has been a U.S./South Dakota trust company since its inception in 1993, with origins tracing back to serving the family that founded General Mills, one of America’s largest dynastic families. We fully understand the very important nuances around trust construction, administration, and corporate governance with regard to proper application of U.S. and South Dakota fiduciary law.”

David A. Warren, JD, who will oversee the South Florida expansion, as well as expansion into New York City and California, adds,

“Bridgeford’s deep experience with fundamental U.S. fiduciary principals and regulatory requirements, coupled with our extensive knowledge of foreign grantor trusts; issues facing international families coming to the U.S.; and understanding of important Know Your Customer (KYC) and reporting requirements; will be a powerful differentiator in the market, quickly propelling Bridgeford as a leading trust provider in the region, and beyond, working with large domestic and international families and their advisors from across the nation and around the world.”

Bridgeford Miami Launch Event – January 22, 2020

Bridgeford invites you to join us for its Miami launch event on January 22nd from 4:30pm-7:00pm at Truluck’s (777 Brickell Avenue, Miami)! In addition to enjoying an evening to network and celebrate Bridgeford’s expansion into Florida, the event will also be substantive and informative in nature, with a panel discussion entitled “America as Jurisdiction of Choice for International Families: Planning Issues in the New Year.” The panel will be moderated by Bridgeford and will include several well respected international advisors in the region, in addition to providing complimentary continuing education credit. You can learn more and RSVP for this event by clicking here.

For more information about Bridgeford and this exciting expansion into Miami, please contact us via our contact page.

Bridgeford Trust to Sponsor 54th Annual Heckerling Institute on Estate Planning in January 2020

Bridgeford Trust is excited to once again be a sponsor at the 54th Annual Heckerling Institute on Estate Planning from January 13-17, 2020 in Orlando, Florida.

If you are attending Heckerling this year, we encourage you to visit with us at our exhibit booth (Booth #400) and attend our sponsored receptions on Sunday and Tuesday nights!

Pre-Conference Reception with Akerman, Bridgeford Trust, and Morris + D’Angelo – January 12, 2020

Join us on Sunday, January 12th at 5:00pm as we come together for a cocktail reception in advance of the 2020 Heckerling Institute on Estate Planning. The evening will take place at Hawk’s Landing Golf Club, which is located on the grounds of the Orlando World Center Marriott. Click here to RSVP.

South Dakota Trust Advantage Reception – January 14, 2020

Be sure to join Bridgeford Trust and many other advisors from across the state and around the country, as we celebrate the power of South Dakota trust law on Tuesday, January 14th from 6:00pm – 7:00pm. This reception is located in Crystal A-B on the Convention Floor at Orlando World Center Marriott. The evening will be a great time of food, spirits, and networking with friends and colleagues. Click here to RSVP.

You can keep up-to-date with our activity at Heckerling, by visiting www.bridgefordtrust.com/heckerling2020.

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!

Delivering Direction and Control Podcast Series – Episode 7

Episode 7 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 7 features David WarrenCo-Founder/Chairman of the Board of Bridgeford Trust Company and President/CEO of Bridgeford – and guest speaker, Dr. Daniel Kim – Founder and President of Sweetwater Digital Asset Consulting, LLC – for an intriguing discussion on cryptocurrency, including the history of this asset class and how to identify a quality cryptocurrency project. This episode also includes Dr. Kim’s take on the research and advisory services available that provide investors guidance in considering cryptocurrency exposure for their portfolios.

Our 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 7!

Fiscal Soundness: An Important Factor in Trust Jurisdiction Selection

It has been said that the choice of where to place a trust is as important as the decision to create one. Concerns around asset protection, privacy, maintaining control and direction over trust creation and administration, and prudent tax planning — particularly under The Supreme Court’s recent holding in Kaestner — makes selecting the proper trust jurisdiction more important now than ever. As the “devil is in the details” when comparing nuances among top tier trust jurisdictions, objective information and charts comparing the various states — similar to this chart — are important tools for advisors and the families they serve.

An often overlooked, but extremely important factor is a state’s fiscal soundness and stability.  Currently, top tier trust jurisdictions like South Dakota have no state income tax which is one of the factors that renders the state so attractive to planners. However, there is no guarantee this will always be the case which is why evaluating the fiscal strength of a state when selecting a trust jurisdiction is essential. An objective evaluation, considering multiple factors, reveals that South Dakota is unequivocally the most fiscally sound of all the top tier trust jurisdictions.

With respect to the likelihood that South Dakota will ever impose a state income tax, consider the following facts and watch the video below to learn more.

  • South Dakota has a constitutional prohibition against estate and inheritance taxes, and requires a 2/3 vote of both houses of the legislature to impose an income tax.
  • South Dakota has had a balanced budget each year since statehood, and again has one this year.
  • Despite having no income tax, South Dakota ranks 1st out of all 50 states according to The Pew Charitable Trusts research and analysis with respect to tax revenue volatility with an extremely stable state income stream. (Alaska is 50th, Wyoming 48th, Delaware 38th, Nevada 29th, and New Hampshire 7th)  1
  • In terms of debt and unfunded retirement costs with public pensions over 100% funded, South Dakota ranks lowest of all states at 1st. (Alaska is 50th, Delaware 43rd, Nevada 32nd, New Hampshire 26th, and Wyoming 10th)  2
  • South Dakota ranks in the top 10 in budget surpluses for how long the state can run on just rainy day funds.  3
  • South Dakota has a AAA bond rating by all 3 rating agencies, indicating a very strong state government and fiscal presence.  4
  • In 2018, the nonprofit Mercatus Center at George Mason University ranked all the states by fiscal condition considering a number of factors including cash solvency, budget solvency, long run solvency, service level solvency, and trust fund solvency. South Dakota ranked as 2nd, just behind Nebraska. (Wyoming is 6th, Nevada 10th, Alaska 11th, New Hampshire 12th, and Delaware 44th.)  5
  • Finally, South Dakota has the second highest bank assets in the nation, slightly behind Ohio, reporting in excess of $3.16 trillion, ahead of New York and every other top tier trust jurisdiction.

When planning for families and looking to the future, the fiscal soundness of a state is an extremely important factor to consider in conjunction with a careful comparison of each state’s trust laws — particularly with trusts that are designed as dynasty trusts — with the intention to exist for many years, over multiple generations. South Dakota trust law and its relative fiscal soundness, when compared with that of other top tier jurisdictions in the aggregate, clearly indicates that it is the superior jurisdiction in the nation, and the most compelling choice for trust situs.

For more information regarding fiscal soundness and its importance while selecting trust jurisdiction, please contact Bridgeford Trust via our contact page.

 

 

1 https://www.pewtrusts.org/en/research-and-analysis/articles/2018/08/29/tax-revenue-volatility-varies-across-states-revenue-streams.
2 https://www.pewtrusts.org/en/research-and-analysis/data-visualizations/2014/fiscal-50#ind4
3 https://www.pewtrusts.org/en/research-and-analysis/data-visualizations/2014/fiscal-50#ind5
4 https://en.wikipedia.org/wiki/List_of_U.S._states_by_credit_rating
5 https://www.mercatus.org/publications/urban-economics/state-fiscal-rankings?utm_source=twitter&utm_medium=social&utm_campaign=fiscalrankings2018

Affirmation of Powerful State Tax Planning Using Trusts

In a unanimous decision, the Supreme Court in the Kaestner case struck down North Carolina’s attempt to tax undistributed income of a resident trust properly sitused and administered in a no income tax state like South Dakota. In the same session, the Supreme Court denied cert in Fielding, upholding the Minnesota Supreme Court’s decision also striking down that state’s attempt to tax undistributed trust income within a resident trust. The Court, in both cases, indicated that taxation of undistributed income within a resident trust is a violation of the United States constitution, affirming and validating powerful state tax planning tools available in non-income tax jurisdictions like South Dakota. The decisions underscore the vital importance of selecting the proper trust jurisdiction, and again accentuates that the choice of a state in which to establish a trust is as critical as the decision to create one in the planning process.

The two cases addressed and confirmed that it is violation of both the Due Process and Commerce Clauses for states to tax undistributed income in a trust where the only contact with the state is the domicile of the beneficiary (Kaestner) or the settlor (Fielding). The holdings in both cases provide great clarity and guidance for planners and practitioners, and affirms the power of modern trust law and trust jurisdiction selection. If you missed it, click here for a webinar discussing practical implications of the ruling. In addition, click here for information about compelling state tax planning opportunities using trusts properly sitused in top tier, no-income tax jurisdictions like South Dakota. You can also view an objective and well-researched chart comparing top tier U.S. jurisdictions by clicking here.

For more information on these cases and state tax planning tools, please contact Bridgeford Trust via our contact page.

South Dakota Again Ranked As Top U.S. Dynasty Trust State

For the 8th consecutive year, South Dakota is ranked as the top Dynasty Trust state in the nation while Delaware – long considered a top tier trust jurisdiction – ranks in 8th position, outside the top tier. A Dynasty Trust, not available in all states, is a powerful planning tool that essentially allows a trust to live in perpetuity (forever), therefore never subjecting the assets to federal estate taxation through a forced distribution. South Dakota was the first state in the nation to abolish the Rule Against Perpetuities in 1983, clearing the way for the creation of the first Dynasty Trust.

The rankings chart – an annual ranking of Dynasty Trust states published by Nevada attorney Steve Oshins – is an excellent resource for advisors and clients due to the methodical and objective approach of evaluating the factors that impact the viability of Dynasty Trust states, such as whether they have an asset protection trust statute and state taxation on trusts, a particularly relevant and important topic given the Supreme Court’s recent unanimous decision in the Kaestner case and the Court’s denial of Cert in the Fielding case. Click here for a recent webinar focused on these cases. The holdings in both cases affirm and confirm powerful state tax planning opportunities using trusts in non-income tax states like South Dakota. The chart accentuates the vital importance of selecting the proper trust jurisdiction in the wealth and trust planning process to ensure that clients are availing themselves of the most progressive and modern trust laws in the country, accessing powerful tax planning and asset protection.

A very important factor to consider relative to whether a Dynasty Trust state is the best for clients, which is not considered in Steve Oshins’ chart, is privacy. Most states have no privacy provisions and in Delaware, after 3 years, sealed trust information can become public. However, South Dakota is the only Dynasty Trust state that has a total, non-discretionary seal on trust information forever, prompting Trusts & Estates Magazine to observe,

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

Click here for more information about South Dakota’s powerful privacy provisions.

Other important factors not considered in Steve Oshins’ chart are the availability of the Special Purpose Entity, as well as the created Community Property Trust and Family Advisor, powerful planning tools not available in other U.S. trust jurisdictions that deliver far more direction and control over trust creation and administration to settlors of trusts, beneficiaries, and their advisors than ever before. Learn more about these very progressive and cutting edge trust laws offered by South Dakota, and view an objective chart comparing top tier trust jurisdictions by clicking here, which clearly shows that, in the aggregate, South Dakota is the superior U.S. trust jurisdiction.

Steve Oshins’ chart can be viewed by clicking on the image below.

For more information regarding Dynasty Trusts, please contact Bridgeford Trust via our contact page.

Bridgeford Trust to present on “Trusts and Situs after Kaestner: Establishing Domicile, Relocating a Trust and Taxing Beneficiaries” Webinar – October 31

Bridgeford Trust Company is very pleased to be participating in an upcoming webinar – “Trusts and Situs after Kaestner: Establishing Domicile, Relocating a Trust and Taxing Beneficiaries” – scheduled for Thursday, October 31, 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 professionals who advise and prepare returns for trusts updated information on trusts’ situs in light of the Kaestner decision. The speakers will cover the criteria states use to tax trusts and trust beneficiaries, steps to relocate a trust, and when it is best to do so. The panel includes David Warren, Co-Founder and Chairman of the Board of Bridgeford Trust Company; William Lipkind, Partner at Wilson Elser; and S. Gray Edmondson, Partner at Edmondson Sage Dixon.

The panel will review these and other important issues:

  • State methods for taxing trusts
  • Situs considerations when forming a trust
  • When and how to relocate a trust
  • Impact of Kaestner on trust taxation
  • Amending returns in light of Kaestner

 To learn more and to register, please click here.

And if you missed Bridgeford Trust’s webinar focused on the Kaestner case and its practical implications with respect to state tax planning and the power of utilizing sophisticated modern trust law planning techniques, only available in top tier trust jurisdictions like South Dakota, click here for a full recording of the presentation.

Bridgeford Trust to Sponsor STEP LatAm’s 2019 Conference

Bridgeford Trust Company is excited to once again be sponsoring the STEP LatAm Conference taking place this year on October 17-18 in Brazil! The theme of the conference is “Building Knowledge Across Borders: Advising Families Today and Tomorrow” and the two days feature cutting edge speakers and a program designed to inform and engage wealth structuring and trust and estate practitioners.  The United States continues to be the jurisdiction of choice for international families. Click here for an informational webinar about many of the factors bringing international families to the United States and modern trust law planning tools available in top tier jurisdictions like South Dakota.

David A. Warren, Chairman and Co-Founder of Bridgeford Trust Company and President and CEO of Bridgeford, along with Terry L. Harris, Managing Director of Bridgeford, will be attending the STEP LatAm Conference. If you are going to be there as well, we would love to see you so please stop by Bridgeford Trust Company’s booth, or reach out to us in advance so we can be sure to connect.

STEP is a global professional association for advisors specifically specializing in family inheritance and succession planning in the international space. STEP works to improve public understanding of issues facing international families, promote education, and strongly encourage very high professional standards among their members and practitioners. To learn more about STEP, click here.

If you would like additional details about the event, visit the conference website at www.steplatamconference.com.