Best U.S. Trust Jurisdiction
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] |
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.
- South Dakota vs. California
- South Dakota vs. Florida
- South Dakota vs. Illinois
- South Dakota vs. Missouri
- South Dakota vs. Pennsylvania
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