In South Dakota, what is a beneficiary-controlled trust?

In South Dakota, a beneficiary-controlled trust can provide future beneficiaries with access to both their inheritance and protection from future creditors. A beneficiary-controlled trust can accomplish all of the following:

  • Reduce or eliminate federal transfer taxes (gift tax, estate tax, generation skipping tax)
  • Keep family assets in the family
  • Protect assets from various creditors (lawsuits, tax liens, divorce, etc.)
  • Permit retention of control over the management of assets
  • Permit you to dictate the eventual beneficiaries of the assets
  • Allow for the retention of flexibility if circumstances or goals change