As a result of SDTC’s extensive international experience, 15% of its clients are international families, representing countries all across the globe.
During their Citibank days, the main reasons for an international family to set-up a U.S. situs trust were if they owned U.S. property, or if they had a U.S. green card and/or U.S. citizen family members. Over two decades later, international clients still seek out U.S. situs for those traditional reasons, however, the international climate both political and regulatory, have greatly expanded the factors leading international families to seek out the U.S. trust situs.
Consequently, South Dakota, as one of the leading trust jurisdictions in the U.S., is frequently chosen by international families looking for U.S. trust situs. Additionally, many of these international families have chosen one of South Dakota’s most experienced and largest trust companies, SDTC, due to its familiarity and extensive experience in serving international clients.
Some of the more specific and common reasons why international families are looking for U.S. trust situs and a U.S. trustee include:
- Improved U.S. trust and tax laws – Including forced heirship statutes
- Blacklisting of offshore jurisdictions by resident country
- Political stability/protection of property from resident country
- Global transparency
- Ownership in residential and/or commercial property in the U.S.
- Ownership of U.S. securities
- Purchasing U.S. life insurance
- Family members in the U.S.
- Marriage by a U.S. citizen to a non-U.S. resident
- Foreign resident coming to the U.S. to work or live
Some of the popular domestic trust planning options for international families are:
- South Dakota Foreign Grantor Trust with SDTC® as the U.S. Trustee
- South Dakota Foreign Non-Grantor Trust with SDTC® as the U.S. Trustee
- South Dakota Non-Resident Alien (NRA) Domestic Dynasty Trust
- South Dakota Stand-By Domestic Dynasty Trust
- Change of Situs: Offshore Foreign Trust to a Domestic South Dakota Trust
- South Dakota Pre-Immigration Domestic Trust
- South Dakota Private Family Trust Company
*Please see: “Domestic Trust Situs Opportunities for International Families” Trusts & Estates Magazine, October 2015.