New Trust Legislation - South Dakota Department of Labor - legis state sd 2025

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Best States For Dynasty or Perpetual Trusts In Alaska, South Dakota, and New Hampshire, these trusts can endure in perpetuity, with no end. However, there are limitations in other jurisdictions. In Nevada and Tennessee, for example, a dynasty trust must expire after 365 and 360 years, respectively.
South Dakota allows for a trust to exist in perpetuity, i.e., for an unlimited duration.
The trustee must be a qualifying South Dakota trustee, the trust must have an express South Dakota governing law clause, the trust must be irrevocable, and, the trust must have a spendthrift clause.
Understanding South Dakotas Dynasty Trust South Dakota does not impose any form of taxation (income, dividend interest, capital gains) on these trust assets, creating significant tax savings for families.
An irrevocable trust may be modified or terminated by judicial action or by written agreement entered into by all beneficiaries, if continuance of the trust on its existing terms is not necessary to carry out a material purpose.
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If you have a high enough net worth to be subject to estate taxes, a trust is likely a good solution, but a trust can benefit people in other specific situations, as well. The best way to see if you might benefit from setting up a trust is to speak with a qualified estate planning professional.
South Dakotas trust laws provide a significant advantage in terms of flexibility and control. Even if your trust is irrevocable, you can make modifications. The state also allows for easy decanting (moving assets from one trust to another) for trust issues that cannot be resolved through non-judicial modification.

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