Commentators and advisors continue to debate whether offshore asset protection trusts, available in jurisdictions such as Nevis and the Cooks Island, are better asset protection vehicles than U.S. domestic asset protection trusts, available in a small number of states including South Dakota. The debate is typically fueled by esoteric legal distinctions and hyperbole or, more commonly, based upon a subjective planning bias of the particular advisor. Unfortunately, the debate does not always serve a client interested in obtaining asset protection well, as they are often left confused and uncertain as to what is the best option. However, a South Dakota statute appears to create the opportunity to bring both offshore and domestic asset protection strategies together in one trust instrument, thereby providing a solution that brings the “best of both worlds” to the asset protection planning space. Read more
This webinar entitled “Taxation of Trusts and the Vital Importance of Selecting the Proper Trust Situs” was originally produced on Thursday, November 19, 2015. We hope that you enjoy the full recording of the presentation and additional resources offered below. This webinar was hosted by David Warren, Bridgeford Trust Company President and CEO.
This presentation examined the progressive trust jurisdictions that allow trusts to “live in perpetuity” and that do not tax trusts at the state level. The presentation discussed how these progressive trusts present compelling tax planning opportunities for clients, underscoring the vital importance of considering alternative trust jurisdictions in the wealth planning process.
This webinar also focused on taxation of trusts among the states and discussed a developing trend in the case law that supports the fact that “resident trusts”, trusts established in a jurisdiction that does not tax retained income in trust, can no longer be taxed by the home state (the state where settlor or beneficiaries reside) and, to do so, violates the Commerce Clause of the United States Constitution.
Watch or listen to a recording of the presentation below.
David Warren, President and CEO of Bridgeford Trust, is going to be featured on WEEU 830AM on Tuesday, December 1, 2015 from 6:00pm-7:00pm.
Virgil Kahl hosts the area’s only locally-produced financial talk show, The Money Doctor, on WEEU which is based in Reading, PA. WEEU 830 AM can be heard throughout several counties in southeastern PA, plus areas of New Jersey, Delaware, and Maryland.
David will be speaking on emerging trust topics and the importance of trust jurisdiction in the wealth planning process. In particular, he will present a clear comparison of important factors that should be considered when selecting proper trust jurisdiction, such as taxation, asset protection, and privacy.
Be sure to mark your calendar and tune in! You can also listen live at http://weeu.com/.
The chart below, produced by Bridgeford Trust Company based upon objective industry data and research, presents a very clear comparison of important factors that should be considered when comparing South Dakota and Delaware as a potential trust jurisdiction. These factors are particularly important for planners to consider when determining the most robust dynasty trust state.
Of particular interest is how South Dakota compares to Delaware in the areas of: asset protection, privacy, and the existence of the special purpose entity.
The chart below accentuates the vital importance of considering alternative trust jurisdictions in the wealth and trust planning process and also clearly demonstrates that South Dakota is a superior trust jurisdiction.
To learn more about how the three factors mentioned above, as well as many others, distinguish South Dakota as a national trust jurisdiction leader, please visit this page for more information: www.bridgefordtrust.com/south-dakota-advantage/
Click on the image below to view the chart in a larger PDF format.
Contact Bridgeford Trust via our contact page to discuss this chart in more detail or with any questions on selecting the correct trust jurisdiction.
Bridgeford Trust Company will partner with McKonly & Asbury as a featured guest on their upcoming November webinar entitled “Taxation of Trusts and the Vital Importance of Selecting the Proper Trust Situs”. The webinar will take place on Thursday, November 19, 2015.
This webinar will be hosted by David Warren, President and CEO of Bridgeford Trust Company, and will examine the progressive trust jurisdictions that allow trusts to “live in perpetuity” and that do not tax trusts at the state level. These progressive trusts present compelling tax planning opportunities for clients, underscoring the vital importance of considering alternative trust jurisdictions in the wealth planning process. Read more
For the 4th consecutive year, South Dakota is ranked as being the top Dynasty Trust State in the nation while Delaware, long considered a top tier trust jurisdiction, slips to the 6th position behind Wyoming. A Dynasty Trust, not available in all states, is a powerful planning tool that essentially allows a trust to live in perpetuity (forever), therefore never subjecting the assets to federal estate taxations through a forced distribution. South Dakota was the first state in the nation to abolish the Rule Against Perpetuities in 1983, clearing the way for the creation of the Dynasty Trust.
The rankings chart, an annual ranking of dynasty trust states from across the country published by Nevada attorney Steve Oshins, is an excellent resource for advisors and clients because of the methodical and objective approach to evaluating the factors that impact the viability of dynasty trust states, such as whether they have an asset protection statute and how effective it is in comparison to other states. Read more
The special purpose entity is a powerful planning tool because it places a liability umbrella over the individuals filling the roles of trust protector, investment committee, and/or distribution committee, therefore protecting them from personal claims connected to their actions in this capacity. Essentially, direction comes from a South Dakota entity and not from any one individual. Equally as important, the special purpose entity concept can be used to destroy nexus between in state trust protectors, investment committee members, and/or distribution committee members, therefore maintaining the jurisdictional integrity of a resident trust with situs in a progressive trust jurisdiction like South Dakota.
South Dakota is the only state with a special purpose entity statute. The sole purpose of the special purpose entity is to direct an administrative trustee, such as Bridgeford Trust, relative to trust investments, distributions, and trust protector functions within the directed trust framework. Click here for a detailed discussion about the directed trust concept and how it is changing the trust industry.
The special purpose entity is an important planning tool as it supports and encourages the benefits associated with selecting progressive jurisdictions for trust situs, such as South Dakota, in the wealth and trust planning process. Click here to review the Advantages of South Dakota Trust Law.
Knowledge and understanding of the special purpose entity is just another example of how crucial selecting proper trust situs has become when developing wealth and trust plans for clients. Click here to view the South Dakota’s special purpose entity statute in its entirety.
For more information about special purpose entities, please contact Bridgeford Trust via our contact page.
Bridgeford Trust invites you to join us for a complimentary CLE/CPE training and mixer on October 8 at The Millworks in Harrisburg! There will be a very relevant and timely discussion about cutting edge modern trust law concepts that have a big impact on trust planning, as well as a great networking opportunity among the CPA and legal communities.
David Warren, President and CEO of Bridgeford Trust Company, and Tracy Burke, Investment Consultant with Conrad Siegel Investment Advisors, Inc. will be presenting “Not Your Grandfather’s Trust: Dynamic, Modern Trust Concepts You Need to Know”.
Thursday, October 8, 2015
4:00pm-6:00pm
The Millworks – 340 Verbeke Street, Harrisburg
We hope you can join us as we enjoy a time of hors d’oeuvres, drinks, and networking. The CLE/CPE presentation will take place from 4:30pm-5:30pm.
Please RSVP by Friday, October 2 to mroberson@bridgefordtrust.com.
CPE Sponsor:
Directed Trusts, only available in a handful of states across the country including South Dakota, continue to drastically change the trust world through unbundling asset management and trust administration functions, putting control back into the hands of settlors, beneficiaries, and their advisors.
Through bifurcating liability, the directed trust model creates a legal framework allowing trustees and beneficiaries to work with asset managers and independent trust companies of their choosing.
Click here for a detailed discussion around how the directed trust concept works to empower settlors, beneficiaries, and their advisors while revolutionizing the trust and wealth management industry.
You can also learn more about Directed Trusts on our website by clicking here. This page goes into further detail on Bundled vs. Directed Trustees, as well as offers you the opportunity to watch a short video on the subject of Directed Trusts.
Please contact Bridgeford Trust via our contact page if you have questions about Directed Trusts.
Bridgeford Trust is proud to be co-sponsoring the Philadelphia Estate Planning Council’s Ethics Forum on April 22, 2015. David Warren, President and CEO, is delivering an introduction and discussion comparing trust jurisdictions and the vital importance of selecting the proper trust situs in the wealth planning process.
More information on the event is as follows:
Description
“Managing The End of Life Equation: Financial Issues plus Ethical Questions”
Your client is failing. Her durable power of attorney requires unanimous consent of her three children who cannot agree about her care or the management of her finances. Her resources are being compromised by years of gifting, medical expenses, multiple residences and the trials and tribulations of children whose needs are a never-ending story. And now everyone expects you – the family advisor — to resolve this. But what is “this?” What can, and should, you do? Read more