Types of Trust Adminstration
The most important difference between SDTC and other trust companies and departments is our attitude in working with our clients. SDTC will normally start from the position that we play a fiduciary role as co-trustee, "delegated" trustee, or "directed" trustee working with one or more family members and/or family advisors (e.g., investment managers, CPAs , attorneys, insurance advisors, financial consultants, and planners, etc.) to fulfill our obligation as a trustee.
SDTC seeks to find a way to ensure that all individuals involved in the administration and management of the trust complement each other and provide for the beneficiaries and heirs in consideration of their needs in the context of the personal interrelationships within the family.
Many times, a corporate fiduciary will demand or eventually seek total control in carrying out the trustee functions, unlike SDTC. SDTC's objective is not for the individuals, advisors and/or co-trustees involved to lose control, but rather to gain more control and be able to execute their roles without being burdened by concerns over the trust administration functions.
The creation of a newly drafted South Dakota trust or the movement of an existing trust to South Dakota requires not only that the trust be administered in South Dakota, but also special expertise in tax, accounting, non-financial asset management, South Dakota statutes, and other areas, all of which SDTC provides.
SDTC will serve in several fiduciary roles: "directed" trustee, "delegated" trustee, and "full all-inclusive trustee".
In many instances, wealthy families desire a trustee willing to "delegate" certain responsibilities such as investment management (i.e., delegated trustee) or to accept direction from an Investment Committee and/or Distribution Committee (i.e., directed trustee). SDTC is able to efficiently accommodate these scenarios with experienced and knowledgeable administrators and state-of-the-art technology. Additionally, "directed" and "delegated" trusts are best suited to modern trust states such as South Dakota.
If desired, SDTC can also serve as "full" trustee, providing a family with an all-inclusive approach to trust administration. Regardless of the fiduciary role chosen for SDTC, the result is the same: "flexible, individualized, service-oriented, and cost-effective trust administration".