South Dakota Trust Company LLC

The most important difference between South Dakota Trust Company (SDTC) and other trust companies and departments is our attitude in working with our clients. SDTC will normally start from the position that we play a fiduciary role as a co-trustee, "delegated" trustee, or "directed" trustee working with one or more family members and/or family advisors (e.g., investment managers, CPAs, attorneys, insurance advisors, financial consultants, and planners, etc.). SDTC seeks to find a way to ensure that all individuals involved in the administration and management of the trust complement each other. We provide quality service for the beneficiaries and heirs in consideration of their needs in the context of the deeply personal interrelationships within the family. Many times, a corporate fiduciary will demand or eventually seek total control in carrying out the trustee functions; this is not the case with SDTC. Our objective is not for the individuals, advisors and/or co-trustees involved to lose control, but rather to gain more control and to be able to execute their roles without being burdened by concerns over the trust administration functions.

South Dakota's unique trust laws allow individuals who establish a South Dakota trust to appoint a trust advisor, an investment trustee or committee, which in turn can select an outside investment advisor(s) and/or manager(s) to "direct" the trust investment management. As SDTC does not have any products, SDTC would work purely as administrative trustee taking direction from the appointed outside investment advisor. SDTC's "directed" trust combines the fiduciary expertise of SDTC with the skills of a client's own investment advisors. This combination of services provides exceptional management and administration of one's trust with the comfort of retaining one's trusted investment advisors. Wealthy families are also establishing Private Family Trust Company’s (PFTC) at a record pace because they are simple to create and maintain, and they offer access to the favorable trust and tax laws of a PFTC state. A South Dakota PFTC is a South Dakota LLC or corporate entity that is typically 100% owned by the family and qualifies to do business in South Dakota as a PFTC after a hearing and acceptance by the South Dakota Division of Banking. The South Dakota PFTC then works with the non-South Dakota Family office via service agreements to provide trust administration and other related services to the family trust. SDTC can help a family or a family office to establish a cost-effective trust company pursuant to South Dakota law by serving as Corporate Agent. Although, the role of Corporate Agent will allow for a South Dakota PFTC, it may not be sufficient to justify South Dakota trust situs unless the trusts are also administered in South Dakota. Consequently, SDTC can also act as Trustee Agent to the Private Family Trust Company in order to accomplish this objective.

South Dakota Trust Company does not provide any investment management or advisory services; however, we provide pure trust administration working exclusively with outside investment managers, who are appointed by trust advisors or family committees and who in turn, direct how the trust is to be invested. Our trust systems allow us the flexibility to work with most all boutique investment firms, registered investment advisors, national or regional banks, national and regional brokerage firms, discount brokerage firms as well as most other international banks and investment firms. These investment managers/advisors can handle the investments within the trusts from anywhere in the world, and we provide secure internet access to family members and advisors worldwide. This best of class model allows clients to continue to work with the trusted investment advisors that they have been working with for years. In addition, this model also allows a family to follow a Yale or Harvard type investment allocation, if desired.

As previously stated, South Dakota Trust Company (SDTC)’s mission is to provide “flexible, cost-effective, service-oriented trust administration” without any products in the #1 rated domestic trust jurisdiction. In doing so, we strive to supply a level of quality and reliability in providing our personalized services and coordinating with our client’s other trusted advisors. SDTC works to find a way to ensure that all individuals involved in the administration and management of the trust complement each other and provide for the beneficiaries and heirs in consideration of their needs. SDTC believes in a formula that goes beyond our services, in which our business provides success to our clients by understanding their specific personal interests, anticipating their needs, exceeding their expectations, and making every moment and aspect of the relationship a fruitful experience. Due to the individualized nature of its trust services, SDTC also values charging reasonable fees for its services, in which most fees are customized according to each individual client relationship. Furthermore, SDTC holds our client’s privacy and security in the highest regard and is taken very seriously. SDTC has established policies and practices that respect the financial privacy of all of our clients and comply fully with the laws and regulations designed to secure this financial privacy.

Typically each client and/or client advisor is assigned a trust officer who serves as the main point of contact. South Dakota Trust Company's trust officers are highly credentialed attorneys, accountants, and trust professionals who are trained and experienced in the areas of South Dakota trust administration. The trust officer's goal is to supplement and facilitate communication with the client, the beneficiaries and the client's other investment, financial planning, legal, insurance, and tax advisors. The trust officer acts as a relationship manager; customizing trust services individually for each client.

SDTC’s average account size is $18 million and average client net worth is $150 million. South Dakota’s favorable laws and our flexible/service-oriented business model have attracted more than 100 billionaires and 300 centimillionaire clients to SDTC. 15% clients are international families from 54 countries. 

SDTC primarily serves as a purely administrative trustee without any products, providing clients and their advisors access to the vast advantages of establishing a trust in South Dakota without having to visit, reside, or even fly over South Dakota. Most of the trust companies in the industry typically provide investment services, first and foremost, and offer trust administration services as a secondary, supplemental service to their investment products. SDTC works exclusively with outside investment managers, combining a “best of class” model in which SDTC sticks to its knitting of open architecture trust administration in South Dakota, with the other trusted client advisors complimenting in their area of expertise. Furthermore, many times a corporate fiduciary will demand or eventually seek total control in carrying out the trustee functions, unlike SDTC. SDTC’s President and Co-Founder, Pierce McDowell, has been an integral member of the South Dakota Governor’s task force on trust legislation for over ten years and is responsible for introducing many of the trust statutes that are in place in the state today. SDTC is frequently looking for new legislation that will make the high-end boutique trust market even better. Most of the competition is not proactive in this area. Additionally, SDTC’s founders and its employees are able to speak knowledgably with clients and their advisors regarding not only the South Dakota Statutes but also those of the other boutique and Private Family Trust Company trust states. In addition, SDTC has worked for many years with advisors from across the country and because of this it has garnered the ‘best of the best’ knowledge regarding planning strategies for the high net worth segment. This knowledge combined with SDTC’s “flexible, individualized trust administration” and the ability to keep South Dakota in the forefront legislatively makes the offering even more unique.

South Dakota Trust Company (SDTC)’s trust officers are available by phone and email whenever they are needed by the client and/or the client’s trusted advisors. SDTC's goal is to supplement the relationship a family advisor may have with his or her client by working with the advisor in a responsive value-added manner. Furthermore, SDTC holds formal and informal client and advisor education programs, such as individual conference calls, webinars, and luncheon seminars, which are available at the client’s request.

South Dakota Trust Company (SDTC) works closely with clients, their advisors, and their lawyers individually, as well as, through webinars, conference calls and seminars to educate them on the advantages of South Dakota as both a top trust and private family trust company jurisdiction. Additionally, SDTC has been published in numerous publications, including Trusts & Estates magazine, and is asked to speak at various industry client and/or advisor conferences and seminars throughout the United States. SDTC can work with an attorney to plan and implement trusts that satisfy the South Dakota situs requirements. As previously stated, SDTC's goal is to supplement the relationship an attorney may have with his or her client by working with the attorney in a responsive value-added manner. SDTC's trust officers have a "can do" attitude without a bureaucracy, allowing them to respond quickly. Forms and other required language, as well as technical expertise, statutory assistance, and planning options, are available by contacting SDTC. If a client does not have an attorney, or if an attorney desires "of-counsel" assistance, SDTC can provide lawyer referrals familiar with South Dakota law, trust drafting and planning strategies. SDTC has forged relationships with most of the top estate planning lawyers throughout the U.S. All of these attorneys are familiar with working with local counsel in an "of-counsel" relationship.

South Dakota Trust Company does not have any investment products and provides pure trust administration, working with whomever the client wishes regarding investments, insurance or custody. Furthermore, clients may use any custodian they choose to hold their assets and we have relationships in working with numerous custodians. We are comfortable administering trusts with all types of non-financial assets, e.g., LLCs, FLPs, closely-held stock, real estate and off shore entities. SDTC’s approach to trust administration allows a family to utilize a Yale and/or Harvard Endowment asset allocation model without the interference of trustee or associated trust laws.

SDTC’s founders each have 30 plus years of trust experience and the trust officer’s average more than 25 years of experience. SDTC's trust officers are highly credentialed attorneys, accountants, and trust professionals who are trained and experienced in the areas of South Dakota trust administration. As previously stated, the trust officer's goal is to supplement and facilitate communication with the client, the beneficiaries and the client's other investment, financial planning, legal, insurance, and tax advisors. The trust officer acts as a relationship manager, customizing trust services individually for each client. Trust accounts are supported by the Infovisa Trust Accounting System. SDTC’s trust and private trust company experience with wealthy families is unparalleled in the industry, which allows SDTC to supplement a family, their lawyer and their advisor’s relationships with extensive practical and theoretical experience.

As previously stated, South Dakota Trust Company does not have any investment products and provides pure trust administration, working with whomever the client wishes regarding investments, insurance or custody. Furthermore, clients may use any custodian they choose to hold their assets and we have relationships in working with numerous custodians. We are comfortable administering trusts with all types of non-financial assets, e.g., LLCs, FLPs, closely-held stock, real estate and off shore entities. SDTC’s approach to trust administration allows a family to utilize a Yale and/or Harvard Endowment asset allocation model without the interference of trustee or associated trust laws.