Private Placement Life Insurance

• South Dakota is probably the most favorable trust jurisdiction for the purchase of Private Placement Life Insurance for several reasons:

1) South Dakota has the lowest premium tax in the United States (i.e. 8 bpts for premiums over $100,000).  This low premium tax would apply whether and irrevocable trust, revocable trust or LLC is utilized. • No retaliatory tax

2) South Dakota statutes allow for in – kind distributions from a Private Placement Life Insurance policy during life and at death so that the underlying investments (i.e. hedge funds, etc…) do not have to be liquidated.

3) South Dakota is frequently chosen due to its unlimited trust duration and the related South Dakota statutes.  Many advisors claim some of the other low premium tax states' trust duration statutes may pose issues.

If you have any questions or would like any additional information regarding SDTC's Trust Services, please contact us .