State Income Tax Savings

• Income Tax:

· If income from trust is distributed, beneficiary is taxed at his/her personal rate in his/her jurisdiction

· For income not distributed, it 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% (South Dakota Trust Company's Proprietary Private Placement Insurance Program could allow federal and state tax savings on growth as well as distributions)

• Low 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
• No State Sales & Use Tax on Trust Assets
• No State Securities Transfer Tax

If you have any questions or would like any additional information regarding South Dakota's Taxes, please contact us .