About South Dakota Planning Company
Typical Client Estate Plan
Why South Dakota?
Unique South Dakota Laws
Unlimited Trust Duration
State Income Tax Savings
Premium Tax Savings
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Reformation and Decanting
Privacy Statutes
International Families
The South Dakota NRA Dynasty Trust
Pre-Immigration Planning
The South Dakota Foreign Grantor Trusts
Stand-By South Dakota Dynasty Trusts
Foreign Law Trusts
Management Biographies

South Dakota Foreign Grantor Trusts

A South Dakota Foreign Grantor Trust is established as a “foreign” trust for U.S. tax purposes and therefore is treated the same as an offshore trust. The benefits of a Foreign Grantor Trust include the following:
  • Typically, the trust assets are all in off-shore entities and therefore the trust is not generally subject to U.S. income tax (except for any U.S. source income).
  • The trust is typically revocable and distributions are only to the grantor or grantor’s spouse.
  • Upon the grantor’s death, the trust can be transformed to a South Dakota Dynasty trust to avoid the U.S. income tax on distributions of accumulated income.
  • May be funded with other off-shore corporate entities such as PICs to avoid U.S. estate taxes.
  • May reduce exposure to sovereign risks.
  • South Dakota is generally a transparent, non blacklisted jurisdiction.

The information on this Private Trusts website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.