May 9, 2014. There is a reason that so many of the Forbes 400 and other wealthy families have chosen to locate their Private Family Trust Company (or PFTCs) and trusts in South Dakota. The South Dakota legislature has proactively emphasized modern trust laws better and longer than any other state. The current laws combined with the legislative awareness and responsiveness are just a few of the reasons why South Dakota is the most favorable regulated PFTC state in the U.S.
According to the Federal Gazette:
South Dakota’s trust business dwarfs that of most states. Minnesota, for example, has just three non-bank trust charters, and there have been no new charters since 2005. They have combined assets of a little over $7 billion, the large majority of it with Ameriprise, according to Patrick McLuen, chief bank examiner with the Minnesota Department of Commerce.
And…
Curt Everson, executive director of the South Dakota Bankers Association, acknowledged that most banks in the state are not involved with trusts. But among larger banks that are, “I get the sense that trust operations are a significant and valued part of the bank’s overall operations,” he said.
South Dakota has been ranked as having the most responsive State legislature for family trust companies, and regularly deals with Trust issues each legislative session. Why? It’s most certainly by design.
Many of these laws creating South Dakota’s favorable trust environment arose during the Janklow Administration, as the Governor attempted to make South Dakota's banking industry a magnet to lure large banking entities to the state, such as Citibank when they came calling to South Daktota in 1981.
Currently. South Dakota is estimated to hold $2.5 trillion in bank assets—more than any other state. It’s a testament to how a state government can proactively cut red tape and build their business climate.
For more information about trusts in South Dakota, contact the Goosmann Trust Law Counsel at info@goosmannlaw.com or call 712-226-4000.
Follow Dan Lederman on Twitter @DanAtGLF!
Let Us Know What You Thought about this Post.
Put your Comment Below.