The South Dakota NRA Dynasty Trust

The South Dakota NRA (Non-Resident Alien) Dynasty Trust is a strategy for foreign citizens with U.S. citizen and/or green card children, grandchildren, and great grandchildren (whether born or unborn). The benefits of an NRA Dynasty Trust include the following:

• The NRA foreign citizen parent/grandparent can transfer an unlimited amount of assets on-shore into the trust without gift, death, or generation-skipping taxes.

• Assets are not subject to state income tax with SDTC as trustee.

• The life insurance investment option (traditional or PPLI) is frequently chosen for the trust, thereby also avoiding federal income taxes within the trust. The life insurance option may also provide for federal and state income-tax-free withdrawals for the U.S. beneficiaries.

• South Dakota has the lowest state insurance premium tax (.08% for premiums over $100,000).

• The Dynasty Trust can continue forever for the benefit of U.S. beneficiaries and provide creditor protection.

1. No Generation Skipping Tax or Gift Tax upon trust funding.
2. A possible investment. Allows assets to grow federal income-tax free (in addition to state income-tax free). Plus tax-free distributions up to Trustee’s tax cost basis in policy provided is not single premium (i.e. not a modified endowment contract).