Autofill Legal South Dakota Trust Forms For Free

The most significant tax advantage offered by South Dakota is that it does not collect income tax. This fact, combined with all the other trust laws, is what makes South Dakota such an attractive jurisdiction to establish trusts originating from other states.

South Dakota is a pure no income/capital gains tax state for trusts. However, if income is distributed from the trust to a beneficiary, the distributed income is generally taxed at the beneficiary's personal rates in his/her tax residence jurisdiction.

The cost of setting up a trust in South Dakota varies depending on the complexity of the trust and the attorney's fees. A basic Revocable Living Trust generally ranges from $1,000 to $3,000. More complex trusts can cost several thousand dollars more.

The primary drawbacks to establishing a South Dakota dynastic trust are the restrictions on your financial flexibility once the trust is established and the limited flexibility imposed on beneficiaries.

Unparalleled Tax Efficiency South Dakota has no state income, capital gains, dividend/interest, or intangible tax. South Dakota also has no state inheritance or estate tax. As such, assets held in a South Dakota trust are taxed under South Dakota tax law and not subject to other state's high tax rates.

The law requires that the maker of the will be at least 18 years old and of sound mind. The will must be written, signed, and witnessed by two or more individuals. No witnesses are necessary if the will is dated and if the signature and material portions of the will are in the handwriting of the person making the will.