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So what taxes does South Dakota actually levy on the trusts? I doubt the beneficiaries actually live in South Dakota and setting up a trust does not imply the m
by LeanderK 5y ago
So what taxes does South Dakota actually levy on the trusts? I doubt the beneficiaries actually live in South Dakota and setting up a trust does not imply the movement of businesses. Does South Dakota gain much from this tax haven-laws?
- boomboomsubban 5y agoThe trustee must live in South Dakota for at least half the year. I'm unsure if there are any other taxes involved but it at least creates a number of high income financial jobs in the state.
- protomyth 5y agoSouth Dakota has a lot of financial jobs (check where your credit card is issued from) and benefits quite a lot from their tax structure. They have no income tax but do sales taxes.
- donarb 5y agoThat's another quirk of South Dakota law. Essentially the state has no limit on interest rates, which is why all the credit card companies have offices there.
- counternotions 5y agoDo they really though? For some coastal elite business tycoon, is the estate tax scheme worth spending half a year in SD?
- boomboomsubban 5y agoThe tycoon just needs to hire someone to live in South Dakota, they don't need to be the trustee.
- yborg 5y agoIt's like any tax haven, a law firm is the trustee and the lawyers need to live in SD half the year.
- metwo 5y agoWhere did you read that? My understanding is the trustee need never set foot in the state to receive full asset protection under state law.
- boomboomsubban 5y agoI think you're confused as to who the trustee is, they are the one who legally owns the money but has no legal right to use it. The people who can receive/use the money are the beneficiaries, and the people putting money into a trust are the grantors.