Considering a South Dakota Trust? Here’s What You Need to Know

South Dakota has quietly become one of the most sought-after jurisdictions in the U.S. for establishing trusts—and for good reason. With no state income or capital gains tax, strong asset protection laws, and the ability to create perpetual “dynasty” trusts, it’s an appealing option for families seeking to preserve and grow wealth for generations.

But setting up a South Dakota trust, especially through a private trust company, isn’t just a matter of signing paperwork. There are significant strategic considerations—from governance structure to tax treatment—that can make or break your results. While the benefits can be substantial (privacy, flexibility, control, and cost-efficient life insurance ownership, to name a few), the trade-offs include ongoing compliance, regulatory oversight, and meaningful operational expenses.

If you’re managing significant family wealth—often $100M+—the right trust structure could offer unparalleled long-term advantages. However, if not executed with care, the same flexibility that makes these trusts so powerful can introduce risk, family conflict, and avoidable tax exposure.

In our latest white paper, we break down:

• What a South Dakota Trust is—and why it’s unique
• Key advantages and drawbacks for family offices
• The difference between regulated and unregulated private trust companies
• What you need to know about state and federal reporting requirements
• How Forest’s platform simplifies compliance and reporting

If you’re weighing whether a South Dakota Trust fits into your estate planning strategy, please reach out to us here to receive a complimentary copy of our ebook on South Dakota trusts.