Bridgeford Trust Company is looking forward to sponsoring the Hawaii Tax Institute’s 60th Annual Conference, taking place on November 5-9, 2023, at the Sheraton Waikiki. The conference, sponsored by the Hawaii Tax Institute Foundation and Chaminade University of Honolulu, offers both in-person and livestream options and is one of the nation’s premier tax and wealth transfer conferences with a goal of keeping practitioners informed of the latest developments in tax and wealth transfer education delivered by a diverse and distinguished faculty of recognized tax and wealth transfer authorities with a positive approach to current and practical subjects.
David Warren, Co-Founder and Chairman of Bridgeford Trust Company, will be attending the conference and if you are going to be there as well, we encourage you to visit Bridgeford’s table to learn about the power and sophistication of South Dakota’s trust laws. As a South Dakota chartered independent trust company, we are passionate about “big ideas” and powerful modern trust law concepts around asset protection, privacy, and sophisticated tax planning which are outlined in this education piece. David would be happy to discuss these concepts and more in greater detail, and how we can collaborate to serve families across the nation and around the world.
If you have any questions about our time at the conference or would like to connect during one of the breaks or receptions, be sure to reach out to us. And as always, if you have any questions on any of topics discussed above, call us at (605) 224-9189 or send us a note through our contact form. We hope to see you there!
Episode 34 is now available on Bridgeford Trust Company’s Delivering Direction and Control podcast series! In this episode, David Warren – Co-Founder and Chairman of Bridgeford Trust Company – sits down with returning guest, William Lipkind – Attorney, Partner, and Chair of Wilson Elser’s Tax Planning & Controversies Practice. Bill concentrates his practice in the areas of wealth preservation, asset protection, and state and federal income taxation and joins David for an intriguing discussion on incomplete non-grantor (ING) trusts and California’s move to abolish them.
Recently, legislation enacted in California aimed at taxing ING trusts, requiring the income of an ING trust to be reported in a qualified taxpayer’s gross income. Therefore, if you have a non-grantor trust as defined by the Internal Revenue Code, California will treat it as a grantor trust. David and Bill discuss in further detail the legislation and how to interpret it, as well as how clients with existing INGs in California could move forward and retool their trust. As you listen, you’ll understand that “all is not lost” for California residents, as there are still powerful tax planning tools and strategies available in top-tier jurisdictions, such as South Dakota, with or without the use of ING.
Bridgeford Trust Company’s Delivering Direction and Control podcast was developed to educate, challenge, and inspire listeners. As we interview experts in the trust planning arena, we keep listeners updated on developments regarding modern trust law and provide practical discussion on the powerful trust 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. Check out all of our episodes here: bridgefordtrust.com/podcasts.
If you have questions on any of the topics discussed in this latest episode, don’t hesitate to reach out to us via our contact form or call us at (605) 224-9189.
Bridgeford Trust Company is proud to be a sponsor and speaker at the upcoming Private Wealth Latin America & The Caribbean Forum, hosted by Markets Group and taking place on November 1-2, 2023 in Miami. This 10th annual forum is the leading conference for family offices, wealth managers, RIAs, private banks, and asset managers in the region. The program’s speaking faculty is primarily comprised of Latin American and Caribbean based leaders in the sector and the agenda covers topics including asset allocation and protection, equity markets, fixed income, alternative investment, succession planning, and an outlook on financial markets and the global economy.
Chris Halverson – Managing Director of Bridgeford International and Senior Trust Officer at Bridgeford Trust Company – will be attending the event as well as presenting in two sessions. On Wednesday, November 1, Chris will participate in a panel discussion on “Maintaining Transparency within Wealth Preservation.” This panel will discuss strategies and insights for preserving wealth, optimizing tax efficiency, and navigating the complex landscape of financial regulations. Then on Thursday, November 2, Chris will be hosting a breakout peer-to-peer discussion. In this session, he will be discussing the power of U.S. modern trust law for global families as the U.S. continues to be the jurisdiction of choice for international families because of powerful planning tools including domestic asset protection trusts and foreign grantor trusts as well as progressive privacy trust laws and tax planning opportunities. These are just a few of the unique planning solutions available under South Dakota law that are important for families across the globe to consider when selecting the best U.S. trust situs.
If you are planning to be there this week, we hope to see you at the sessions that Chris will be presenting at, and be sure to stop by our booth to say hello! And as always, if you have any questions on any of the topics discussed above, be sure to contact us via our contact page or by calling (605) 224-9189.
Over the past four decades, the financial services industry witnessed extraordinary developments in U.S. trust law, beginning in 1983 when South Dakota abolished the Rule Against Perpetuities, clearing the way for the first dynasty trust state in the nation. Modern trust law concepts such as domestic asset protection, strong privacy provisions, directed trusts, trust protectors, and decanting revolutionized the trust industry, directly addressing and resolving inherent conflicts of interest and lack of control that families were forced to endure under the traditional, institutionalized trust company model – where asset management, trust services, banking, and often insurance, were sold to families through a “big bank bundled” approach, wrought with hidden and excessive fees and high turnover.
The U.S. Trust Industry Transformed: A New Paradigm
Without a state income tax, top-tier U.S. jurisdictions with powerful modern trust law planning tools, such as South Dakota, offered compelling tax planning opportunities for families across the nation. The vital importance of selecting the proper trust jurisdiction became paramount, with some suggesting that it is a breach of fiduciary duty, or even malpractice, to place a trust in an unfavorable tax, asset protection, or privacy jurisdiction.
Fueled by exciting developments in modern trust law, independent “boutique style” trust companies that did not manage assets, such as Bridgeford Trust Company, proliferated in top-tier jurisdictions, and families were able to avail themselves of the most progressive trust laws in the nation, engage in prudent tax planning, and avoid conflict of interests, while not giving up direction and control. A market-driven correction to a highly flawed trust industry, and a new paradigm was born – indeed an exciting time in the U.S. trust industry.
International Conglomerates and the Infusion of Private Equity
The new paradigm in the U.S. trust world developed a huge market opportunity for independent/directed trust companies. This attracted the attention of major international financial services “conglomerates” and private equity firms – all looking for a “piece of the action” and to capture, or in many instances, retain revenue going to independent trust companies in top-tier U.S. trust jurisdictions.
The negative impact of this attention is already being felt in the U.S. trust industry. Large international, multifaceted, and institutionalized financial services providers from all over the world have established trust companies in top-tier jurisdictions, often without essential fiduciary talent, requisite understanding of U.S. trust law, or how to properly administer trusts in a given state.
Perhaps more troubling, many of these massive companies – often fueled and emboldened by private equity dollars – are buying independent trust companies in top-tier jurisdictions, including recently in South Dakota. Independent trust companies that were originally founded on the principal that the trust industry was in need of an independent, conflict-free, and non-institutionalized approach, have been rendered institutionalized, no longer boutique, and, most disturbing, no longer conflict-free. An unfortunate development for the U.S. trust industry for certain, as once independent trust companies created in the vein of a new paradigm, as a panacea for all that was wrong with the U.S. trust industry, now have become part of the very problem they sought to remedy.
Bridgeford Trust Company: Big Enough to Matter, Small Enough to Care
The trust industry, at its essence, is and always will be a relationship business. The past 40 years have clearly demonstrated that trustee services are best executed through a boutique, conflict-free, fully independent, personalized, and non-institutionalized approach. Large families not only crave this approach, but increasingly have come to expect and demand it from their corporate trustee. Bridgeford Trust Company passionately embraces modern trust law and the new paradigm, and executes a service model committed to these attributes with an entrepreneurial focus on education, creativity, attention to detail, and great responsiveness.
Now the oldest and largest independently owned South Dakota chartered trust company, Bridgeford Trust Company provides boutique, conflict-free, and innovative trust and fiduciary services and progressive U.S. modern trust law solutions around asset protection, privacy, and tax planning to domestic and international families across the country and around the world. Our large families are served by outstanding and highly experienced trust officers working from offices in Sioux Falls and Pierre, South Dakota.
Over the past 25 years, Bridgeford Trust Company evolved from one of South Dakota’s first private trust companies into a public, fully independent, and modern trust company serving the global ultra-high net worth and family office space, leveraging over 125 years of combined legal, accounting, and trust administrative experience executed through our talented and growing staff of fiduciary professionals comprised primarily of JDs, CPAs, CFAs, and CTFAs. With a fiercely independent spirit and a deep passion for the power of modern trust law, Bridgeford Trust Company is committed to serving domestic and international families with its conflict-free, personalized, and non-institutionalized paradigm for many years to come.
For more information on independent v. institutionalized trust companies, and Bridgeford Trust Company’s commitment to the new paradigm, please contact us via our contact page or by calling (605) 224-9189.
Bridgeford Trust Company is looking forward to sponsoring and speaking at High Speed Alliance’s upcoming event in Fort Worth, Texas! High Speed Alliance is a registered investment advisor that goes above and beyond for clients with unique “white glove” service, helping their clients shepherd financial, family, and human capital for now and future generations. This event, taking place on October 26-29, 2023, brings together a community of nearly 200 physicians and business owners with presentations geared toward helping them master the principles of business, finance, family and lifestyle.
David Warren, Co-Founder and Chairman, and Stephen Lewis, Senior Trust Officer, will be attending the event and speaking on the power of modern trust law. During the presentation, David and Stephen will walk attendees through powerful modern trust law planning tools, only available in a handful of states, including South Dakota. They will discuss planning options in the areas of asset protection, state and federal taxation, and privacy and how these tools deliver more direction and control to settlors of trusts and their advisors through the use of directed trusts and the trust protector concept. They’ll also be discussing “top-tier” trust jurisdictions and objectively comparing these jurisdictions in the context of selecting the best U.S. trust jurisdiction in the planning process.
We are looking forward to the event! If you are in the area and would like to connect, we’d love to hear from you! Be sure to contact us via our contact page or by calling (605) 224-9189.
Bridgeford Trust Company is looking forward to sponsoring the sold-out 2023 STEP Miami Summit! The summit, taking place at The Ritz-Carlton Key Biscayne from October 18-20, 2023, is an excellent opportunity to learn about the newest changes, updates, and trends in the market for international private client planning as well as network at their various events, including two cocktail receptions leading up to the summit conference day on Friday, October 20. Read on to learn more about where we’ll be, including a reception invitation for after the summit concludes extended to both summit attendees and those not attending but, in the area, to join us!
Bridgeford & UMA Wealth Reception – October 20 from 5:00-8:00pm
After the STEP Miami Summit concludes on Friday, October 20, we’d like to invite those attending the sessions as well as those not attending, but in the area, to join us for a reception at The Ritz-Carlton Key Biscayne’s beach bar, Dune. Bridgeford Trust Company and UMA Wealth (Switzerland) AG will be hosting this event together and if you are available, please join us! To secure a spot and add the details to your calendar, you can register by clicking here.
STEP Miami Summit – October 18-20
David Warren (Co-Founder and Chairman of Bridgeford Trust Company) and Danielle Keeton (Senior Vice President and Senior Trust Officer) will be attending the summit and if you are going to be there as well, we encourage you to visit Bridgeford’s table to learn about the power and sophistication of South Dakota’s trust laws. These progressive and modern trust laws allow families to avail themselves of very strong privacy trust laws and asset protection provisions, and to take advantage of South Dakota’s status as a no state income tax state. Come talk with us about how we may be able to collaborate to best serve your domestic and international clients!
If you have any questions about our time at the summit, our reception, or any of the topics discussed above, be sure to reach out to us at (605) 224-9189 or via our contact form. We hope to see you there!
Bridgeford Advisors (dba Bridgeford) – Bridgeford Trust Company’s sister company – is excited to be a sponsor of the Newport Beach Chamber’s 2024 Economic Forecast, a signature annual event with a focus on the 2024 economy to help with budgeting, finance, real estate, and investment decisions. This event will take place on Wednesday, October 11, 2023, from 11:00am-1:30pm at Balboa Bay Resort in Newport Beach, CA. David Warren, Co-Founder/Chairman of Bridgeford Trust Company and President/CEO of Bridgeford Advisors, will be attending and is looking forward to this much anticipated event and hosting a table of outstanding professionals in the region.
The 2024 Economic Forecast featuring the UCI Paul Merage School of Business is presented by the Newport Beach Chamber of Commerce each year and the event attracts hundreds of Orange County business leaders, media, and government officials. It promises to deliver a powerful program presented by an esteemed and unprecedented panel of experts. This year, Christopher Schwarz – Professor, Finance at UC Irvine’s Paul Merage School of Business and Faculty Director for the University of California, Irvine Center for Investment and Wealth Management – will present the “Economic and Financial Forecast for 2024.” Christopher will be joined by Marshall Toplansky – Innovation Professor, Management Science Argyros School of Business and Economics at Chapman University; Co-Founder and Former Managing Director of KPMG’s National Center of Excellence in Data and Analytics; and Director of the Harvard Business School Association of Orange County – who will present “A Look at the Forces Driving Commercial Real Estate Markets.”
Bridgeford Advisors’ California office works with advisors, partners, and clients in the region as we continue to promote the power of modern trust law and the South Dakota Advantage as well as the vital importance of selecting proper trust jurisdiction (particularly with respect to tax planning opportunities for families living in a state with extremely high tax rates, such as California). You can learn more about the power of South Dakota trust law in this educational brochure that addresses important modern law concepts as well as through this objective chart comparing the leading U.S. trust jurisdictions.
We do have a limited number of tickets available to join David at this event, so please reach out to us if you’ll be in the area and would like to attend.
Episode 33 is now available on Bridgeford Trust Company’s Delivering Direction and Control podcast series! In this episode, David Warren – Co-Founder & Chairman of Bridgeford Trust Company – sits down with guest, Reuben Tylor – Founder & Director of Trustees & Fiduciaries (Cook Islands) Ltd – who has been providing legal services to the offshore industry since 1987 and is a true thought leader in asset protection.
The conversation begins with a discussion on Reuben’s work and the development of various financial and legislative products – the most important of which was his development of asset protection legislation targeting the U.S. market in the late 1980’s. As the conversation continues, they discuss the Trust Protector concept in the context of Cook Islands law and how Trustees & Fiduciaries (Cook Islands) Ltd can serve in that role when it is beneficial to the client.
David and Reuben conclude the interview with a detailed discussion on the formation and importance of the Relationship Property Trust (RPT): a solution to a problem Reuben had been experiencing firsthand. When a family with substantial wealth over several generations would go through a divorce, family courts were determining that assets could not be set aside from relationship property matters and were instead brought back into the matrimonial property dispute. In an effort to ensure years of wealth planning for families was not dismantled, Reuben developed the Relationship Property Act (RPA) which identified that the solution was to provide a statutory rebuttal of the need to divide and distribute the assets and Cook Islands passed the new legislation creating the RPT to keep the assets of high net-worth families intact in the event of a separation.
Bridgeford Trust Company’s Delivering Direction and Control podcast was developed to educate, challenge, and inspire listeners. As we interview experts in the trust planning arena, we keep listeners updated on developments regarding modern trust law and provide practical discussion on the powerful trust 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. Check out all of our episodes here: bridgefordtrust.com/podcasts.
If you have questions on any of the topics discussed in this latest episode, don’t hesitate to reach out to us via our contact form or call us at (605) 224-9189.
As mentioned in our recent article, the Corporate Transparency Act (CTA) comes into effect on January 1, 2024, and it’s important to understand the reporting changes and requirements to ensure compliance.
Bridgeford Trust Company is looking forward to presenting on a timely webinar on the topic, hosted by Strafford – a leading education company providing premium CLE and CPE courses for planning professionals. Taking place on Wednesday, October 18, 2023, from 1:00-2:50pm EDT, the webinar – Corporate Transparency Act: Reporting Beneficial Ownership to FinCEN, Filing Requirements and Exceptions – will review the Corporate Transparency Act and its beneficial ownership reporting requirements.
This course features an experienced panel including David Warren, Co-Founder/Chairman of Bridgeford Trust Company and Patrick McCormick, Founder/Managing Partner of McCormick Tax. During the webinar, David and Patrick will walk attendees through the key definitions and the new reporting requirements and offer suggestions on complying with the Act for companies, trusts, and individuals.
David and Patrick will review these and other critical issues:
Who is subject to the reporting requirements of the Corporate Transparency Act?
How and what attribution rules might affect reporting obligations?
What are the penalties and sanctions for nonreporting?
What information is required to be disclosed?
To learn more about this webinar, please click here. If you are interested in attending, please reach out to Melissa Roberson, Global Marketing and Digital Media Director, at mroberson@bridgefordtrust.com to inquire about limited passes we have available for friends of Bridgeford.
The Corporate Transparency Act (CTA) is a new law coming into effect January 1, 2024, that was signed into law as part of the National Defense Authorization Act for Fiscal Year 2021, and tasked the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) with implementation through regulations. The CTA aims to enhance corporate transparency in an effort to prevent and combat illicit financial activities, such as money laundering and tax evasion, discouraging the use of shell corporations as a tool to disguise and move illicit funds.
The CTA implements reporting requirements for limited liability companies (LLCs), corporations, and other business entities that have never had to report such information previously. While the CTA primarily targets businesses’ legal and financial obligations, it is important for our readers to understand the reporting changes and requirements to ensure compliance as well as to recognize how the CTA could affect trust and estate planning.
Reporting Requirements:
Under the CTA, certain covered entities are required to report beneficial ownership information to FinCEN. The CTA applies only to certain domestic companies and foreign entities that are registered to do business in the U.S, termed as Reporting Companies. A Reporting Company is defined as a corporation, limited liability company, or other similar entity that is:
Created by the filing of a document with a secretary of state or similar office under the law of a U.S. state or Indian Tribe, or
Formed under the law of a foreign country and registered to do business in the U.S. by the filing of a document with a secretary of state or a similar office under the laws of a U.S. state or Indian Tribe.
Beneficial Owners:
A Beneficial Owner is an individual who directly or indirectly – through any contract, arrangement, understanding, relationship, or otherwise:
Exercises substantial control* over the entity, or
Owns or controls 25% or more of the ownership interests of a covered entity.
* Substantial control is defined as: serving as a senior officer of the reporting company; having authority over the appointment or removal of any senior officer or a majority of the board of directors (or similar body); or directing, determining, or having substantial influence over important decisions made by the reporting company.
What is Reported?
In general, the CTA requires a reporting company to disclose specific information regarding (1) the company itself, (2) its beneficial owners, and (3) the company applicants to FinCEN, including:
Full legal name
Date of birth
Current address
Unique identifying number and the issuing jurisdiction
If an individual has obtained a FinCEN identifier and provided that FinCEN identifier to a reporting company, the reporting company may include the FinCEN identifier in its report in lieu of the information required for that individual.
Exemptions:
Some entities are exempt from reporting including publicly traded companies, certain financial institutions, and entities with a physical presence and substantial operations in the United States.
Financial institutions or certain issuers of securities in heavily regulated industries (e.g., banks, credit unions, broker-dealers, money services businesses registered with FinCEN, and issuers registered with the U.S. Securities and Exchange Commission).
“Large operating companies” (defined in the final rule as an entity that employs more than 20 full-time employees in the U.S., has an operating presence at a physical office within the U.S., and filed a federal income tax or information return in the U.S. for the previous year demonstrating more than $5,000,000 in gross receipts or sales).
Legal entities, including certain trusts, will be excluded to the extent that they are not created by the filing of a document with a secretary of state or similar office.
Penalties for Non-Compliance:
The CTA establishes penalties for non-compliance, including civil and criminal penalties. Failure to report accurate and timely information can result in fines and even imprisonment.
Any person who provides false information, or fails to report complete or updated information, is subject to a civil penalty of not more than $500 for each day that the violation continues, and may face fines not more than $10,000, imprisonment for not more than two years, or both.
Separate from the CTA, persons could face criminal liability under the federal criminal code, which prohibits knowingly and willfully providing false information or concealing a material fact to any of the three branches of the federal government.
Privacy Protections:
The CTA includes provisions to protect the privacy of beneficial owners’ personal information. Access to this information is limited to authorized government agencies for law enforcement and national security purposes.
The CTA mandates that such information will be available only to authorized government authorities, subject to effective safeguards and controls.
The U.S. Department of the Treasury will maintain the information in a secure, nonpublic database. Importantly, however, the collected information may also be available to financial institutions so that they can confirm beneficial ownership information provided by their customers.
While trust companies themselves are not directly impacted by the CTA, clients who use trusts as part of their holding company structure may be affected. This increased transparency may influence how individuals and entities structure their trusts and holding companies for privacy and asset protection purposes. For more information on the CTA and its implications for trust and estate planning, please contact us via our contact page or by calling (605) 224-9189.
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Bridgeford Trust Company is looking forward to sponsoring the Hawaii Tax Institute’s 60th Annual Conference, taking place on November 5-9, 2023, at the Sheraton Waikiki. The conference, sponsored by the Hawaii Tax Institute Foundation and Chaminade University of Honolulu, offers both in-person and livestream options and is one of the nation’s premier tax and wealth transfer conferences with a goal of keeping practitioners informed of the latest developments in tax and wealth transfer education delivered by a diverse and distinguished faculty of recognized tax and wealth transfer authorities with a positive approach to current and practical subjects.
Bridgeford Trust Company is proud to be a sponsor and speaker at the upcoming 
Bridgeford Trust Company is looking forward to sponsoring and speaking at High Speed Alliance’s upcoming event in Fort Worth, Texas! 
Bridgeford Trust Company is looking forward to sponsoring the sold-out 
Bridgeford Advisors (dba Bridgeford) – Bridgeford Trust Company’s sister company – is excited to be a sponsor of the 
As mentioned in our 
The Corporate Transparency Act (CTA) is a new law coming into effect January 1, 2024, that was signed into law as part of the National Defense Authorization Act for Fiscal Year 2021, and tasked the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) with implementation through regulations. The CTA aims to enhance corporate transparency in an effort to prevent and combat illicit financial activities, such as money laundering and tax evasion, discouraging the use of shell corporations as a tool to disguise and move illicit funds.