|Trust Size ($)|
|Remaining Term of Trust (years)|
|Expected Future Rate of Return for the Trust (%)|
|Annual % of income derived from Ordinary Income (%)|
|Annual % of income derived from Capital Gains (%)|
|Current Trust Situs||VS.|
|State Tax Rate on Income (%) (1)(2)(3)||VS.|
|State Tax Rate on LT Capital Gains (%) (1)(2)(3)||VS.|
(1) Have used the highest state tax rate for ordinary income and capital gain
(2) Have used federal rate of 20% for capital gain and 39.6% for ordinary income
(3) Source for state income tax rates was TaxFoundation.org and for state capital gains tax rates was Realized1031.
The calculation of expected growth of creating a trust in South Dakota is only an estimate that should not be relied upon. These estimates apply to only non-grantor trusts. Certain states will still impose taxes based upon the residence of the grantor at time of creation and/or residences of the fiduciaries and beneficiaries. This should not be construed as legal or tax advice. You should consult your own lawyer or tax professional before creating a South Dakota trust.
Sterling Trustees LLC makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained on this page or any website linked to this page.