State Income Tax Savings:

South Dakota is a pure no income/capital gains tax state for trusts:

> However, if income from trust is distributed, beneficiary is taxed at his/her personal rate in his/her tax residence jurisdiction.

> For income not distributed, it is generally taxed to the trust at the trust rate based on the trust's situs (none in South Dakota)- there are certain exceptions with certain partnership and business interests.

> Maximum Federal tax rate: 35% (Please note: If insurance is utilized it may allow for federal and state tax savings on growth as well as distributions):

• No State Income or Capital Gains Tax
• Lowest State Insurance Premium Tax
• No Intangibles Tax (compare FL, KS, KY & MI)
• No Dividends & Interest Tax
• No State LLC Tax
• No State LLP Tax
• No State Ad Valorem Tax
• No City or Local Tax
• No State Inheritance Tax
• No State Gift Tax
• No State (GST) Generation-Skipping Tax
• No State Coupon Tax
• No State Personal Property Tax