Why select Pioneer Bank & Trust and a South Dakota Dynasty Trust?
South Dakota allows the use of Dynasty Trusts, which may continue over many generations, or forever, without the imposition of additional estate tax.
South Dakota permits the use of investment advisors to give direction to the settlor's estate. This allows you to take advantage of South Dakota law while maintaining your investment advisor for trust investments.
South Dakota requires no court filings or recordings of trust documents. This maximum privacy for trust settlors and beneficiaries is a significant advantage of South Dakota trusts and allows for economical trust administration.
South Dakota permits the appointment of successor trustees.
South Dakota recognizes spendthrift trusts and protects trust assets from creditor claims.
What is a Dynasty Trust?
The basic premise underlying the federal transfer tax system is that property is to be taxed each time it passes from one generation to the next.
The result from the perspective of a grandfather who wishes to pass his property down to his grandchildren is that property will be taxed twice before this process is complete. A Dynasty Trust helps eliminate that tax burden.
This scheme of taxation is successfully avoided in many instances by families who place their wealth in trusts. The technique commonly used for this purpose is an irrevocable perpetuities trust – also called a “dynasty trust.”
Once exempted, the property transferred to the trust, as well as any appreciation on the property and all accumulated income from the property, will remain forever free from federal transfer taxation.
Only a few states, including South Dakota, have no rule against perpetuities. Many specialists believe that South Dakota's dynasty trust is preferable to a trust established in any other state.
These advantages include:
- No rule against perpetuities
- No state income tax
- Favorable business climate
- Modern and flexible administration statutes
- Administration experience
E-mail us at Pioneer Bank & Trust for more information about establishing your dynasty trust.
Non Deposit Investments Available Through Pioneer Bank & Trust Are Not FDIC Insured, Are Not Deposits, Obligations or Guaranteed by Pioneer Bank & Trust, Are Subject to Investment Risk Including Possible Loss of Principal