Webinar Recap: Supreme Court Strikes Down Taxation on Undistributed Trust Income – What Does It Mean?

This webinar entitled “Supreme Court Strikes Down Taxation on Undistributed Trust Income – What Does It Mean?” was originally produced on Tuesday, July 9, 2019. We hope that you enjoy the full recording of the presentation and additional resources offered below.

In an unanimous decision, the Supreme Court strikes 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. You can read more about it by clicking here. Indicating that to do so is a violation of due process, the Court’s decision is a very important affirmation and validation of powerful state tax planning tools available in non-income tax jurisdictions, and again, underscores the vital importance of selecting proper trust jurisdiction in the planning process.

During this webinar, David Warren (Co-Founder/Chairman of the Board at Bridgeford Trust Company and President/CEO of Bridgeford Advisors), William Lipkind (Attorney, Partner, and Chair of Wilson Elser’s Tax Planning & Controversies practice), and Terry Prendergast (Of Counsel at Davenport, Evans, Hurwitz & Smith, LLP) presented an informative discussion 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.

Bridgeford Trust is proud to share that we joined forces with trust companies from South Dakota, and across the nation, to fund an Amicus Brief filed with the Court in support of the taxpayer, and the important constitutional issues at stake in this case. It was a very impressive effort, pulling together trust and legal professionals from all over the country with the focus of having a positive impact on the Court’s analysis in this very important case. The Court’s decision is a victory for the trust industry and planning community, and affirms powerful state tax planning techniques available by simply selecting the proper trust jurisdiction for trust formation and administration. Click here for information about these techniques and click here for a detailed chart comparing top tier trust jurisdictions.

If you have any questions regarding the material covered in this webinar, please contact Bridgeford Trust via our contact page.

Delivering Direction and Control Podcast Series – Episode 3

Episode 3 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 3 features David Warren – Chairman of the Board/Co-Founder of Bridgeford Trust Company and President/CEO of Bridgeford Advisors – and guest speaker, William Lipkind – Attorney, Partner, and Chair of Wilson Elser’s Tax Planning & Controversies Practice – for a discussion on Incomplete Non-Grantor Trusts and Community Property Trusts. They also take a look at the favorable Private Letter Rulings that Mr. Lipkind has obtained from the IRS on these and other tax planning strategies.

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 3!

Bridgeford Trust Webinar: Supreme Court Strikes Down Taxation on Undistributed Trust Income – What Does It Mean?

In an unanimous decision, the Supreme Court strikes 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. You can read more about it by clicking here. Indicating that to do so is a violation of due process, the Court’s decision is a very important affirmation and validation of powerful state tax planning tools available in non-income tax jurisdictions, and again, underscores the vital importance of selecting proper trust jurisdiction in the planning process.

Join Bridgeford Trust, William Lipkind (Attorney, Partner, and Chair of Wilson Elser’s Tax Planning & Controversies practice), and Terry Prendergast (Of Counsel at Davenport, Evans, Hurwitz & Smith, LLP) for an informative webinar on Tuesday, July 9th at 2:00pm EST as we discuss the 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.

Webinar: Tuesday, July 9 at 2PM EST

Bridgeford Trust is proud to share that we joined forces with trust companies from South Dakota, and across the nation, to fund an Amicus Brief filed with the Court in support of the taxpayer, and the important constitutional issues at stake in this case. It was a very impressive effort, pulling together trust and legal professionals from all over the country with the focus of having a positive impact on the Court’s analysis in this very important case. The Court’s decision is a victory for the trust industry and planning community, and affirms powerful state tax planning techniques available by simply selecting the proper trust jurisdiction for trust formation and administration. Click here for information about these techniques and click here for a detailed chart comparing top tier trust jurisdictions.

We hope you can join us for this webinar! For more information, please contact Bridgeford Trust via our contact page.

Bridgeford Trust – Speaker and Sponsor for the 2019 APIC Conference

Bridgeford Trust will be in Nashville, Tennessee from June 10-12 at the 2019 APIC Conference. We will be presenting on a Trust Jurisdiction Panel, where attendees will learn about the planning nuances in South Dakota and how the specific topics and areas of law discussed render South Dakota a leading U.S. trust jurisdiction. We are also a sponsor for the conference and look forward to meeting new faces at our booth!

APIC delivers open access to collaborate sharing the best resources and intellectual capital in the industry in order to enhance members’ knowledge, consulting skills, and expertise to achieve the ultimate client experience. APIC is supported by members – an elite group of financial advisors that view each other as colleagues rather than competitors, willingly sharing their wealth of experience and supporting the efforts of fellow members.

Routinely ranked as one of the nation’s best and most progressive trust jurisdictions, South Dakota fiduciary law gives clients access to some of the most advanced asset protection and dynasty trust capabilities in the United States as well as the ability to hold non-traditional assets in trusts. In addition, South Dakota’s confidentiality provisions and directed trust statutes are among the best in the country, allowing a client to confidentially work with financial advisors or investment managers of their choosing in the administration of trust assets. To learn more about the South Dakota Advantage, click here for more information including an objective and well researched chart comparing top tier jurisdictions.

Our team is looking forward to attending the 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 best collaborate to serve families in need of sophisticated trust needs.

Bridgeford Trust to Sponsor STEP Miami’s 10th Annual Summit on May 31st

On May 31st, Bridgeford Trust will be in Florida as a sponsor for STEP Miami’s 10th 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 300 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.

Our team will be attending the Summit 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!

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
https://bridgefordtrust.com/what-we-do/foreign-grantor-trust/

Common Reporting Standard
https://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!