Best U.S. Trust Jurisdiction

Delivering

Direction and Control

Bridgeford Trust Company produced a well-researched chart comparing the leading top-tier U.S. trust jurisdictions, with a particular emphasis on areas that clearly distinguish South Dakota as the superior trust jurisdiction in the overall analysis. You can view the chart below, or click here to access a PDF version.

As illustrated by the shaded areas on the chart, there are seven 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. You can learn more about each of the progressive trust topics and laws that render South Dakota a leading U.S. trust jurisdiction by clicking on the categories below.

For more information about the South Dakota Advantage, call (605) 494-0243 or contact us online.

	South Dakota	Nevada	Wyoming	Alaska	Delaware
Dynasty Trusts	Yes Ranked as #1 ^[1]	Yes Ranked as #2 ^[1] State constitution prohibits modification to RAP ^[2]	Yes Ranked as #5 ^[1] State constitution prohibits modification to RAP ^[2]	Yes Ranked as #4 ^[1]	Yes Ranked as #7
State Income Taxation	No	No	No	No Future uncertain	No Only for non-residents
Community Property Trusts	Yes ^[3]	No	No	Yes Future uncertain	No
Domestic Asset Protection Statute	Yes ^[4] 2 year statute of limitations Exception for child support	Yes ^[4] 2 year statute of limitations No exceptions for child and spousal support	Yes ^[4] 4 year statute of limitations Exception for child support	Yes ^[4] 4 year statute of limitations Exception for divorcing spouse	Yes ^[4] 4 year statute of limitations Exceptions for child and spousal support
Trust Protector	Yes	Yes	Yes	Yes	Yes
Directed Trusts	Yes	Yes	Yes	Yes	Yes
Decanting Statute	Yes Ranked as #1 ^[5]	Yes Ranked as #2 ^[5]	Yes Ranked as #14 ^[5]	Yes Ranked as #9 ^[5]	Yes Ranked as #3 ^[5]
Trust Privacy Provision	Yes – Total Privacy Seal Forever Automatically attaches	No Total Privacy Seal ^[2] Subject to judge discretion	No Total Privacy Seal ^[2] Subject to judge discretion	No Total Privacy Seal ^[2] Subject to judge discretion	Yes – Three Year Privacy Seal ^[2] Subject to judge discretion
Special Purpose Entity	Yes ^[2] Codified by statute	No	No	No	No
Family Advisor	Yes	No	No	No	No
State Fiscal Health	Ranked as #1 ^[6]	Ranked as #18 ^[6]	Ranked as #48 ^[6]	Ranked as #50 ^[6]	Ranked as #38 ^[6]

*Denotes superior distinction among jurisdictions.

Additional Comparisons

In addition to the top-tier jurisdictions listed above, Bridgeford Trust Company has compiled this chart for additional jurisdictions as well. You can click on the links below to view a comparison of South Dakota to these additional jurisdictions in PDF format.

If you would like to inquire about a jurisdiction that is not currently included in this list, please don’t hesitate to reach out to us by calling (605) 494-0243 or contact us online. We’d be happy to help!

Citations

^[1] Attorney Steve Oshins’ “9th Annual Dynasty Trust State Rankings Chart”
^[2] Worthington, Daniel G. and Merric, Mark “Which Trust Situs is Best in 2022?” Trusts & Estates December 2021
^[3] South Dakota Special Spousal Trusts, House Bill 1039 (2016) (Sections 29-42)
^[4] Attorney Steve Oshins’ “11th Annual Domestic Asset Protection Trust State Rankings Chart”
^[5] Attorney Steve Oshins’ “8th Annual Trust Decanting State Rankings Chart”
^[6] Murphy, Mary; Iyengar, Akshay; and Zhang, Alexandria “Tax Revenue Volatility Varies Across States, Revenue Streams” PEW August 2018

Delivering

Direction and Control