Incomplete Non-Grantor Trust

An Incomplete Non-Grantor Trust (“ING”) is a powerful vehicle, particularly for low cost basis assets with a contemplated future sale, that potentially eliminates state income/capital gain tax while taking advantage of Domestic Asset Protection and other progressive modern trust laws. It is an incomplete gift that never leaves the settlor’s estate, which means there is no gift tax. In addition, the trust has a Non-Grantor status, meaning the income is taxed at the trust level, not the individual level, thereby potentially avoiding state income tax on assets within a trust if sitused and properly administered in a no-tax jurisdiction.

Watch this video to learn when to use the ING and to hear more about other state tax planning opportunities that exist by simply creating or moving a trust to a no-tax jurisdiction like South Dakota.

For more information on INGs and how this tax planning strategy can work in your favor, please reach out to us via our contact page.

 

Bridgeford Trust to Sponsor Step Miami’s 9th Annual Summit on June 1st

On June 1st, Bridgeford Trust will be back in Florida to sponsor STEP Miami’s 9th Annual Summit! The Summit, taking place at the Four Seasons Hotel in Miami, is an excellent opportunity to review the latest issues concerning international private client planning and includes presentations by leading professionals in the area. Last year’s Summit attracted more than 250 professionals from around the globe, so you won’t want to miss this one!

The financial services industry has seen a tremendous influx of international families coming to the United States for many reasons, and to South Dakota in particular because of the power and sophistication of its trust laws. South Dakota’s progressive and industry leading trust laws allow families to avail themselves of very strong privacy and asset protection provisions, and to take advantage of South Dakota’s status as a no state income tax state. To learn more about the South Dakota Advantage, click here.

David A. Warren, Co-Founder, President, and CEO of Bridgeford Trust, will be attending the Forum and if you are going to be there as well, we encourage you to visit Bridgeford Trust’s table and talk with us about how we may be able to collaborate to best serve the international community. 

For additional details about the Forum and to register, click here.

We hope to see you there!

Bridgeford Trust to Sponsor Step LA’s International Trust and Estate Planning Forum

Bridgeford Trust is excited to be sponsoring the STEP International Trust and Estate Planning Forum: Around the Globe in 2018, presented by STEP Los Angeles. Taking place on Thursday, May 3rd and Friday, May 4th 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. Below are links to informational pieces that may be of interest to advisors working in the international space.

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

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

David A. Warren, Co-Founder, President, and CEO of Bridgeford Trust, will be attending the Forum and if you are going to be there as well, we encourage you to visit Bridgeford Trust’s table and talk with us about how we may be able to collaborate to best serve the international community. 

For additional details about the Forum and to register, click here.

We hope to see you there!

 

Bridgeford Trust to Sponsor Ave Maria School of Law Estate Planning Conference

Bridgeford Trust is very pleased to be sponsoring Ave Maria School of Law’s 5th Annual Estate Planning Conference on April 27, 2018 in Naples, Florida. The Ave Maria School of Law Estate Planning Conference offers estate planning professionals a unique professional development and networking opportunity and includes lectures and panel discussions designed to examine current developments in estate planning and to strengthen the practitioner’s knowledge and application of estate planning techniques.

Given recent changes in the tax code, heightened concerns around asset protection and privacy, and the huge influx of international families coming to the Unites States, selecting the proper U.S. trust jurisdiction in the planning process is more important now than ever. Bridgeford Trust has produced an objective and well-researched chart comparing 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 or on the image below to view the chart in PDF format.

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.

David A. Warren, Co-Founder, President, and CEO of Bridgeford Trust, will be attending the Ave Maria School of Law’s Annual Estate Planning Conference and if you are going to be there as well, we encourage you to visit Bridgeford Trust’s table and talk with us about how we may be able to collaborate.

For additional details about the conference and to register, click here.

We hope to see you there!

 

Bridgeford Trust to Sponsor Step 14th Annual International Estate Planning Institute

Bridgeford Trust is very pleased to be sponsoring the 14th 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 22nd and Friday, March 23rd 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
http://bridgefordtrust.com/what-we-do/foreign-grantor-trust/

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

David A. Warren, Co-Founder, President, and CEO of Bridgeford Trust, will be attending the Institute and if you are going to be there as well, we encourage you to visit Bridgeford Trust’s table 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!

 

The Merger of Two Independent South Dakota Trust Companies: Revolutionizing the Trust Industry

Bridgeford Trust Company, LLC (Bridgeford Trust Company) and Delta Trust Company of South Dakota, Inc. (Delta Trust Company), both South Dakota chartered independent trust companies, are proud and excited to announce a merger, pending South Dakota Division of Banking approval.

Founded in 1992, as a private trust company, Delta Trust Company was established by the descendants of James Ford Bell, the founder of General Mills, to serve the various and complex trust and fiduciary needs of one of America’s largest and most prominent families. Under the leadership of Todd J. Bernhard, Delta Trust Company has evolved into a public trust company serving the needs of a select and limited number of very large families.  Delta Trust Company has also been actively involved in serving as a host for startup trust companies, earning a reputation in South Dakota and beyond, for providing excellent technical fiduciary expertise and outstanding client service to families and trust companies across the country and around the world. 

Founded in 2012, Bridgeford Trust Company provides trust and fiduciary services to domestic and international families across the country and around the world. Through deliberately selecting South Dakota over other top tier U.S. trust jurisdictions for its trust charter, Bridgeford Trust Company leverages that state’s cutting edge, modern trust laws and represents a new and emerging wealth management service paradigm built around true independence, collaboration, and world-class capabilities. Powered by its extremely responsive, nimble, and creative approach to education and client service, Bridgeford Trust Company has been recognized as one of South Dakota’s fastest growing trust companies.

David A. Warren, Co-Founder, President, and CEO of Bridgeford Trust Company states…

“Delta Trust Company’s rich history, expertise, and national reputation for providing excellent client service is a perfect fit with Bridgeford Trust Company’s entrepreneurial, ‘can do’ spirit and creative and flexible approach to education and client service.”

Todd J. Bernhard, Delta Trust Company’s CEO, echoing this sentiment, adds…

“Our common passion for South Dakota’s industry leading modern trust laws, coupled with the very impressive strengths and talents that each company brings to the table, will result in an extremely powerful combined company positioned to be a leader in the trust industry not only in South Dakota but also across the country and around the world.”

Pending confirmation by the South Dakota Division of Banking, the newly merged company, Bridgeford Trust Company, will substantially increase total assets under administration as well as add additional trust professionals. All trust administration and corporate governance functions will be performed and executed through offices in Pierre and Sioux Falls, South Dakota, while planning, business development, and marketing activity will be coordinated through Bridgeford Advisors, Inc., a legally distinct sister company of Bridgeford Trust Company, with locations in Pennsylvania, New York City, Miami, and Southern California. 

South Dakota has consistently been ranked as the top U.S. dynasty trust state, and its decanting statute has been ranked as the most progressive in the nation by Nevada Attorney, Steve Oshins. In addition, South Dakota has the strongest privacy provisions and one of the most powerful domestic asset protection statutes in the nation, as recently observed by Trusts & Estates Magazine. Consistently recognized as an innovator in the trust industry, South Dakota is also one of only three states with a Community Property Trust statute, a very powerful tax planning tool, and the only state in the nation with the Family Advisor role, referred to as a “trust protector light.” Click here to view a chart comparing the leading U.S. trust jurisdictions, with a particular emphasis on these areas that clearly distinguish South Dakota as the superior U.S. trust jurisdiction.

For more information on this exciting merger, please watch the video below or contact us via our contact page.

 

 

South Dakota Is Again Considered A Top U.S. Trust Jurisdiction By Trusts & Estates Magazine

Trusts & Estates Magazine again names South Dakota as a top tier trust jurisdiction. Annually, Trusts & Estates Magazine evaluates trust jurisdictions utilizing an objective approach that considers the following factors: 1) whether a state has a Rule Against Perpetuities; 2) whether a state has income, inheritance, or premium taxes;  3) whether the state has adopted “modern trust laws” such as decanting provisions, directed trust capability, and privacy options; 4) whether a state has an asset protection statute and the effectiveness of the statute; 5) the effect of migration on the rights of beneficial interest.

Interestingly noting that Delaware, long considered to be a leading U.S. trust jurisdiction, is not keeping pace with other progressive U.S. trust jurisdictions, the authors’ state, “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 been consistently considered by many commentators and planners to be the best trust jurisdiction in the nation because of its cutting edge laws around asset protection, dynasty and directed trusts, and privacy. Trusts & Estates Magazine’s article again accentuates the vital importance of selecting the proper trust jurisdiction, stating, “Planning professionals catering to high net worth clients need to understand the difference in trust laws and planning opportunities, and how it affects those clients and their beneficiaries.” You can view the complete article entitled “Which Trust Situs is Best in 2018?” by clicking here. This article was featured on WealthManagement.com which is the digital resource of Trusts & Estates Magazine.

The authors’ conclusion 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, and having the best Decanting Statute in the nation. In addition, the authors of the aforementioned article concur with Mr. Oshins, stating, “South Dakota has the most flexible decanting statute…and appears to provide the best example of flexibility for trust remodeling.”
  • 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”, not mentioned in the article BUT a very important planning tool.
  • Has one of the lowest insurance premium tax in the nation at 8 basis points, which applies to BOTH policies held by individuals AND policies held within an LLC. (While Delaware boasts 0 basis points on policies held by individuals, policies held within an LLC – which is typically the case – are taxed at 200 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, please contact Bridgeford Trust via our contact page.

 

South Dakota’s Decanting Statute Is Ranked for the 5th Time As Best In The Nation

South Dakota is once again ranked, for the 5th consecutive year, as having the top decanting statute in the nation! Published by Nevada attorney Steve Oshins, the new 5th 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 in the nation.
  • Unequivocally has the most robust privacy laws in the country, as pointed out by an article appearing in the January 2016 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 an informative 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.

 

Bridgeford Trust To Attend 52nd Annual Heckerling Institute On Estate Planning

Bridgeford Trust will be attending the 52nd Annual Heckerling Institute on Estate Planning from January 22-26 in Orlando, Florida. If you are attending Heckerling this year, we encourage you to join Bridgeford Trust and advisors from around the country and the world for two dynamic receptions that we are sponsoring.

Kick Off Reception – January 21, 2018

First, join us for a great kick off reception on Sunday, January 21st from 5:00pm – 7:00pm at Hawk’s Landing Golf Club, located right on the hotel grounds. Click here to RSVP for what will be a fun start to the conference with great food, spirits, and networking with friends and colleagues.

Cocktail Reception – January 24, 2018

Then on Wednesday, January 24th, we hope to see you at a cocktail reception to celebrate and learn more about the South Dakota trust advantage. This reception has developed into one of the conference’s premier events and is taking place from 5:45pm – 7:45pm in the Grand Ballroom. This year’s reception is entitled “Diamonds are Forever…and so is your South Dakota Trust” and yes, a real diamond will be given away so you won’t want to miss this! Click here to register.

Please join David Warren, Co-Founder, President, and CEO, and Kurt Trimarchi, Executive VP of Strategic Operations, of Bridgeford Trust, as well as others from the Bridgeford Trust team, for what promises to be two great events.

We look forward to seeing you in Orlando!

 

Tax and Privacy Haven – A Look At The U.S., CRS, and FATCA

Common Reporting Standard (CRS) has had a tremendous impact on planning for both domestic and international families with asset protection and privacy concerns. Very similar to FATCA, CRS is a powerful tool that is designed to reduce tax evasion and illegal financial activity by imposing very strong transparency rules and disclosure requirements relative to financial transactions.

While the reporting requirements of CRS and FATCA are similar, FATCA focuses on collecting information from individuals only holding U.S. based accounts, and such information is not shared with other countries. CRS is broader in scope, seeking global cooperation and the sharing of financial information between and among participating jurisdictions, with enhanced transparency in multi-national business and investment reporting. To date, well over 100 countries have committed to implement CRS, including jurisdictions traditionally used by families with privacy and asset protection concerns such as Switzerland, Cooks Islands, BVI, Nevis, and New Zealand. 

The United States has not signed on to CRS, prompting many planners, academics, and industry publications to consider the United States as both a tax and privacy haven. On May 16, 2016, Financial Times stated “America is the new Switzerland,” and the Washington Post stated on April 5, 2016, that “The United States is now becoming one of the world’s largest tax and secrecy havens.” The Daily Business Review, on April 25, 2017, stated that “The United States has become a place of choice for foreign investors.”

Because of CRS, and a myriad of other reasons, the financial services industry has seen a tremendous influx of international families coming to the Unites States, and to South Dakota in particular, to avail themselves of very strong privacy and asset protection provisions, and to take advantage of South Dakota’s status as a no state income tax state (to learn more about the power of South Dakota trust law, click here for a detailed information piece). This reality places a tremendous responsibility on financial institutions to perform very thorough due diligence, and to put very copious Know Your Customer (KYC) programs in place. In addition, it is imperative that the U.S. financial planning industry, as a whole, act responsible when planning for and working with international families, clearly differentiating between providing privacy solutions and NOT secrecy, and engaging in appropriate tax planning and NOT tax evasion. 

Understanding the vital importance of issues around international families coming to the United States, the South Dakota Division of Banking is proactively working very closely with trust companies such as Bridgeford Trust working in the international space to develop uniform regulations designed to protect against nefarious actors and to protect the overall integrity of the South Dakota trust industry. Bret Afdahl, Director of the South Dakota Division Banking stated, in a May 16, 2017, Financial Times article, “We are the chartering authority and, if something goes wrong, we own it. From a reputational standpoint, no one benefits from having something bad happen.”

Below is short video about CRS and how Bridgeford Trust is well positioned to responsibly and diligently work with international families.

For more information about CRS or how Bridgeford Trust can partner with international families coming to the United States and their advisors, please contact us via our contact page.

You can also learn more about this issue by clicking here for a recent webinar entitled “A Tax and Privacy Haven: Coming to America” that was originally produced on Thursday, September 7, 2017.