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Article: South Dakota, a haven for trust managers, is establishing a charter fee.(Brief Article)
- Article from:
- American Banker
- Article date:
- March 7, 1997
- Author:
CopyrightCOPYRIGHT 1997 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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South Dakota, which has a reputation as a favorable place to manage trusts, wants reimbursement for creating such an environment.
While most states stipulate that trusts must end and pay taxes upon distribution, South Dakota allows them to exist in perpetuity. Besides, there is no personal income tax.
South Dakota welcomes out-of-state entities to set up stand-alone trust companies. But now for the first time the state wants to make sure no millionaires or their trustees get a free ride.
Legislation passed this week imposes a $25,000 charter fee aimed at out- of-state trust companies. The fee, which goes into effect July 1, can be refunded if the trust ...