There are several reasons why someone might create a trust in South Dakota.
Some common reasons include: To protect assets from creditors or lawsuits To manage assets for the benefit of a minor or other individual who is unable to do so themselves To reduce estate taxes and avoid probate To provide for the smooth and efficient transfer of assets to beneficiaries South Dakota is a popular state for trust creation because it has favorable trust laws, including a high exemption from estate taxes and a relatively low level of state income tax.
Additionally, South Dakota allows for the creation of anonymous trusts, which can provide a high degree of privacy and protection for the trust's assets.