Sioux Falls, SD -- (SBWIRE) -- 06/12/2020 -- Today's wealthy families put an incredible amount of faith in their advisors, so it's critical that these professionals make the right decision about where to domicile a client's trust. Sterling Trustees, a South Dakota-chartered trust company, encourages advisors to consider the Mount Rushmore state, boasting some of the nation's most progressive trust laws.
One leading advantage of South Dakota trusts is that the state has no income tax or capital gains tax for trusts. Families can save millions of dollars over the term of their trusts, while allowing these significant tax savings to compound. Best of all, clients do not have to reside in South Dakota to take advantage of this exceptional tax-free growth.
Sterling Trustees has designed a helpful online calculator that quickly and clearly shows the potential tax savings of situsing a trust in South Dakota versus a family's home state. Here's an illustration of the online calculator in action:
An attorney or other advisor inputs a $10 million trust with a remaining term of 30 years and a 6% future return rate. Seventy percent of the trust assets are invested in stocks and the remaining 30% in bonds.
Next, the advisor compares the tax consequences in various states to see the superior benefits of a South Dakota trust. In California, for example, after 30 years the $10 million trust would grow to approximately $30 million in assets after tax. In New York, $32 million; Illinois, $34 million. Meanwhile in South Dakota – where the trust grows state-tax free – the value soars to over $37 million.
Sterling Trustees encourages advisors and clients to try this comparison exercise themselves with the convenient online tax calculator. The user simply enters a few basic parameters, including trust size, remaining term of the trust and expected future rate of return. And the savings are immediately apparent.
For anyone who wants to save state income tax and capital gains tax on trusts, Sterling Trustees strongly recommends establishing or relocating trusts to South Dakota. Furthermore, they urge advisors and families to partner with an unbiased, South Dakota-chartered expert who is not compensated by commission and finder's fees and never influenced by financial products or services. For more information about the importance of an independent trust administration company, contact Sterling Trustees today.
About Sterling Trustees
Sterling Trustees is a South Dakota-chartered trust company located in Sioux Falls, South Dakota. By working independently, the firm allows its clients to avoid the extra costs and conflicts of interest associated with large financial institutions. Sterling Trustees is dedicated to keeping assets safe while remaining objective.