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
Asset Protection
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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

The South Dakota NRA Dynasty Trust

The South Dakota NRA (Non-Resident Alien) Dynasty Trust is a strategy for foreign citizens with U.S. citizen and/or green card children, grandchildren, great grand-children, (whether born or unborn). The benefits of an NRA Dynasty Trust include:

  • The NRA foreign citizen parent/grand-parent can transfer an unlimited amount of assets on-shore into the trust without gift, death or generation-skipping taxes.

  • Assets are not subject to state income tax with SDTC as trustee.

  • The life insurance investment option (traditional or PPLI) is frequently chosen for the trust, thereby also avoiding federal income taxes within the trust. The life insurance option may also provide for federal and state income tax-free withdrawals for the US beneficiaries.

  • South Dakota has one of the lowest state insurance premium tax (.08% for premiums over $100,000).

  • The Dynasty Trust can continue forever for the benefit of U.S. beneficiaries and provide creditor protection.

  1. No Generation Skipping Tax or Gift Tax upon trust funding.
  2. A possible investment. Allows assets to grow federal income-tax free (in addition to state income-tax free). Plus tax-free distributions up to Trustee’s tax cost basis in policy provided is not single premium (i.e. not a modified endowment contract).
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.