Many international families are choosing the U.S. and South Dakota for their trust situs as a result of political instability or lack of protection of property in their resident country.
Issues involving forced heirship, blacklisting, corruption, violence/terrorism, or a weak economy in the families’ resident country may make South Dakota an appealing trust jurisdiction.
For instance, the resident country of the family may blacklist specific offshore trust jurisdictions. Generally, blacklisting includes legislation or regulations that prescribe negative treatment for certain transactions that involve a specific jurisdiction. Consequently, the U.S., and in particular South Dakota, may be a favorable non-blacklisted domestic trust jurisdiction for international families.