South Dakota Trust Company Services for PFTCs
South Dakota Trust Company (SDTC) can help a family or a family office to establish a cost-effective trust company pursuant to South Dakota law by serving as Corporate Agent. In this capacity, SDTC plays a de minimis role that gives families the "minimum statutory contracts" they need to get through the application process with South Dakota's regulatory group and the Division of Banking. SDTC also maintains an ongoing minimal relationship with SD. In this arrangement, SDTC enters into three contracts with the respective family office:
1. A lease for office space
2. A service agreement (discussing installation of a phone line, answering the phone, vault space, forwarding mail, etc.)
3. An arrangement for an officer of SDTC to serve as the one required South Dakota PFTC Board member. (minimum of three board members are required with a maximum of 12 - one board member must be from South Dakota)
Although the role of Corporate Agent will allow for a South Dakota PFTC, it may not be sufficient to justify South Dakota trust situs unless the trusts are also administered in South Dakota. Consequently, SDTC can also act as Trustee Agent to the Private Family Trust Company in order to accomplish this objective. As Trustee Agent, SDTC can provide South Dakota trust administrative services as well as assistance with regulatory/compliance issues, trust accounting and custody services. SDTC works with a family's existing custodian in most cases.
Estimated setup and recurring South Dakota costs that a family might expect to incur in the establishment of a South Dakota PFTC include:
Application costs ($5,000) Minimum capital outlay of $200,000 (this capital is typically invested in treasuries and set aside to warrant against breach of trust - it is therefore not really an expense) Insurance/bonding - $10,000 to $25,000 (this is annual and recurring) Audit fees - $1,500 to $7,500 (this, too, is annual and recurring) SD legal fees - $30,000 to $50,000 SDTC Corporate Agent fees - $2,500 per month (see above)
For more information please visit, www.privatefamilytrustcompany.com |