Directed Trustee
• The typical “directed” trust has SDTC as an administrative trustee and/or custodian, but an outside investment advisor/manager, is responsible for the trust's investment management. There are many different ways of structuring each scenario based upon the client's needs.
• South Dakota's unique trust laws allow individuals who establish a South Dakota trust to appoint an investment trustee or committee, which in turn can select an outside investment advisor and/or manager to “direct” the trust investment management.
• The SDTC's “directed” trust combines the fiduciary expertise of SDTC with the skills of one's own investment advisors. This combination of services provides exceptional management and administration of one's trust combined with the comfort of maintaining one's trusted investment advisors.
• The trust's investment trustee or committee is typically comprised of the client's family members and/or advisors and directs that the investment management be handled separately by the client's outside investment managers. The investment trustee or committee directs the administrative trustee, SDTC, as to how the trust will be invested and invests pursuant to an Investment Policy Statement previously reviewed with the administrative trustee, SDTC.
• Additionally, a distribution committee may be established to determine when trust distributions should be made. Family members can serve on these distribution committees and determine all distributions of income and principal for “health, education maintenance and support” (HEMS). Any additional distributions would be tax sensitive and require an independent trustee (i.e. SDTC, CPAs, and/or Attorney etc…)
• SDTC can typically be removed at anytime as administrative trustee. Alternatively, if desired, SDTC can step into any of the committee functions.
• SDTC's technology connects investment managers via a secure internet connection so that the investment manager may manage the account and execute security transactions electronically. SDTC has both Advent and Centerpiece technology for the purpose of interfacing the trust administration with the investment managers, if desired.
• Any type of trust can be established as a “directed” trust. This includes both revocable and irrevocable trusts. The trust instrument vests control over investment discretion with an outside advisor.
If you have any questions or would like any additional information regarding SDTC's Trust Services, please contact us .
