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