More Trust Companies Move to South Dakota

Kansas-based Great Plains Trust is the second trust company to transfer to South Dakota this year. There are nine more out-of-state trust companies wanting to move to South Dakota. If the Division of Banking approves all the trust companies, South Dakota will have more than 50 trust companies, compared to 25 in Nevada and 40 in Delaware. Some reasons behind all the transfers to South Dakota are below:

• Favorable private trust laws
• No state income tax for beneficiaries
• Low barriers-to-entry, including low startup costs
• Perpetual trust life
• Flexibility in types of account structures

For more information, see Scott Martin, Kansas Trust Company to Restart in South Dakota, The Trust Advisor Blog, Aug. 14, 2010.