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
Reformation and Decanting
Privacy Statutes
International Families
Management Biographies

State Income Tax Savings:

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

However, if income from trust is distributed, beneficiaries are taxed at his/her personal rates in his/her tax residence jurisdiction.

Income not distributed 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: 39.5% ( Using insurance 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 Generation-Skipping Transfer (GST) tax
  • No state coupon tax
  • No state personal property tax
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.