State Income Tax Savings:

South Dakota is a pure no income/capital gains tax state for trusts.

However, if income from trust is distributed, beneficiaries are taxed at their personal rates in their tax residence jurisdiction.

Income not distributed is generally taxed to the trust at the trust rate based on the trust's situs (none in South Dakota); there are certain exceptions with certain partnership and business interests.

Maximum federal tax rate: 35% ( Using insurance may allow for federal and state tax savings on growth as well as distributions):

• No state income or capital gains tax
• Lowest state insurance premium tax
• No intangibles tax (compare FL, KS, KY & MI)
• No dividends & interest tax
• No state LLC tax
• No state LLP tax
• No state ad valorem tax
• No city or local tax
• No state inheritance tax
• No state gift tax
• No state (GST) Generation-Skipping Tax
• No state coupon tax
• No state personal property tax