SDTCS and SDTC can assist a family or a family office to establish a cost-effective South Dakota trust company pursuant to South Dakota law by serving as Corporate Agent.
In this capacity, SDTCS, which is based in Sioux Falls SD, plays a de minimis role that gives the families the “minimum statutory contacts” they need to get through the application process with South Dakota’s regulatory group, the Division of Banking, as well as maintain an ongoing relationship with South Dakota.
In this arrangement, SDTCS enters into three contracts with the respective family office:
1. A lease for office space;
2. A service agreement (discussing installation of a phone line, answering the phone, vault space, forward mailing, etc.);
3. An arrangement for an officer of SDTC® to serve as the one required South Dakota PFTC board member. (Minimum of 3 board members are required with a maximum of 12 – one board member must be a resident of South Dakota).
Please note: the South Dakota board member provided by SDTCS does not need to hear private family matters; only needs to deal with PTC/banking portion of the board meeting.
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 act as Trustee Agent to the PFTC as trustee in order to accomplish this objective. As Trustee Agent, SDTC can provide South Dakota trust administrative services as well as assistance with regulatory/compliance issues, trust accounting and/or custody services. SDTC® works with a family’s existing custodian in most cases.