Index
South Dakota Asset Protection Trusts
Summary
South Dakota is a global haven for wealth storage because it allows 'Dynasty Trusts' that can last forever without paying state taxes, while shielding assets from creditors, lawsuits, and ex-spouses.
Rights & Rules
- 01.You can place your money or assets into a South Dakota trust, and after a short waiting period (usually 2 years), creditors cannot touch those assets.
- 02.A trust in South Dakota can legally exist in perpetuity (forever); there is no 'rule against perpetuities,' meaning wealth can be passed down tax-free for centuries.
- 03.The trust's documents and the identities of the beneficiaries can be kept entirely secret from the public (sealed by the court).
- 04.You do not have to live in South Dakota to set up a trust there.
Penalties
- 01.Asset protection is void if the trust was set up specifically to defraud a known, current creditor (e.g., hiding money immediately after losing a lawsuit).
Verified Citations
South Dakota Codified Laws Chapter 55-16
Source"No action of any kind, including, without limitation, an action to enforce a judgment... may be brought at law or in equity for an attachment or other provisional remedy against property that is the subject of a qualified disposition..."