The Advantages of South Dakota Asset Protection Trust

• An asset protection trust is an avenue to protect your assets from your creditors. If you put your assets in this sort of trust, your creditors generally cannot lay claim to your assets. Each state has its own laws relating to such trusts. South Dakota offers some advantages for asset protection trusts.

Unlimited Duration

• You can set up a trust without a finite duration in South Dakota. Under the state's laws, your beneficiaries will continue to enjoy protection from creditors and ex-spouses. This feature also helps families pass along values to future generations.

Control with Creditor Protection

• South Dakota is one of the few states that permit you to set up a self-settled trust. A self-settled trust is one into which you can transfer assets and of which you are the beneficiary. You can retain a level of control of the trust in matters such as control of the trust adviser. You also can retain disposition rights to the trust and continue to enjoy the protection from creditors that the asset protection trust vehicle offers.

South Dakota Business Laws

• There are also advantages from South Dakota business laws. In South Dakota, you do not have to file trust documents publicly. You do not have to file updates or changes to a trust in a South Dakota court. Also, South Dakota law provides that the only remedy available for the creditor of a member or partner is a "charging order" against the member or partner's interest. If your creditor successfully sues you, she will only be entitled to get any distributions made to you. She will receive no other rights with respect to your interests. Not only that, there are no state taxes or capital gains taxes in South Dakota.