South Dakota is the leading bank asset jurisdiction in the United States, according to the FDIC. As the leading trust, asset protection, privacy and favorable tax jurisdiction, South Dakota has attracted many wealthy families to establish trusts in South Dakota without having to live, visit or even fly over the state.
Trustee and Beneficiary Duties
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Income Tax Planning – Deductions for Administrative Expenses Under the Final Regulations
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It’s the Fourth Quarter for corporate trustees who are burdened with the decision of how to implement the final regulations under Section 67 issued by the IRS last May. These regulations, govern the costs incurred by trusts and estates that are subject to the 2-percent floor on miscellaneous itemized deductions under Section 67. The regulations apply to tax years beginning on or after May 9, 2014, and thus for existing trusts using a calendar year, 2015 will be the first tax year governed by the new regulations.
Case Study – The Art and Complexity of Distributions
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Distributions have many implications for the PFTC. The responsibilities of the Private Trust Company in preserving the corpus and being true to the role of the trustee must also align with the changing needs of the family. This peer dialogue will center around a case study examining the art and complexity of family distributions:
For those considering a PFTC or in the early stages of developing one, this session provides the core information needed to get started, including identifying the right state and right structure for your family, chartering or licensing, and insight on the day to day realities of operating a PFTC.Attendees will learn:
Responsibilities and Risks as the Family’s Trustee
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Poor trust risk management and family disunity remain major if not the major threats to families seeking to remain together from generation to generation. Often embraced hesitantly by families, the most important risk management actions are basic and logical, only requiring families to understand and commit to them. Communication is often the key to both trust risk management and overcoming family disunity.Attendees will learn:
Private Trust Companies were created and constantly evolve to meet the needs of wealthy families for trustees not adequately met by the traditional alternatives of institutional and individual trustees. The foundations for choosing the right trustee for a family are(i) identifying the role they need their trustee to play, and(ii) understanding the strengths and weaknesses of each type of trustee for filling that role.
A founder of the modern private trust company industry will provide a brief history of the industry and where it is at today: its strengths, growing maturity, challenges and how it must evolve going forward. Attendees will learn:
Supervision and Examination of PFTCs
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Regulated PFTC’s are licensed and supervised by state banking regulators. In exchange, families are given the only non-federal, permanent corporate/LLC charter allowing them to provide trust services and, without registration with the SEC, act as an investment adviser. The main price they pay is the burden of state regulations and examinations. This session makes transparent the supervisory regime.Attendees will learn:
The PFTC represents an elegant evolution of the family office by solidifying the role of the family in managing all of the family assets (more than just trust assets) and implementing its strategic plan. In this session, expert advisors and a family office executive share how to successfully integrate the PFTC with the family enterprise.Attendees will learn:
PFTCs provide significant flexibility with respect to investment management. The governance models afforded under PFTCs allow families to carefully craft the role of investment management, from the what, to the who, to the how. Modern trust laws in select states will allow you to create this flexibility through PFTCs, or for those less inclined, through a directed trustee arrangement.Attendees will learn: