The Spousal Lifetime Access Trust (SLAT) offers a unique planning opportunity for married couples to pass wealth to future generations while potentially reducing their taxable estate.

This powerful planning tool is particularly advantageous under South Dakota’s progressive modern trust law and is important for high and ultra-high-net-worth individuals and families to consider in the planning process.

Understanding SLATs

A SLAT is an irrevocable trust created by one spouse for the benefit of the other spouse. It allows the funding spouse to transfer assets into the trust, which are then managed by a trustee for the benefit of the beneficiary spouse and potentially other family members.

SLATs offer several advantages:

• Tax Efficiency: By transferring assets into the trust, the funding spouse removes those assets from their taxable estate, reducing estate tax liability upon the funding spouse’s death.
• Asset Protection: Assets held within the trust are typically shielded from creditors, lawsuits, and divorce settlements, providing a layer of protection for the beneficiary spouse.
• Flexibility: SLATs can be structured to allow the beneficiary spouse access to income and principal distributions, providing financial support while maintaining the integrity of the trust.

By leveraging South Dakota’s unique and industry leading trust laws, married couples can harness the full potential of SLATs to preserve wealth, protect assets, and provide for future generations.

Completed v. Incomplete Gift SLAT

When it comes to understanding SLATs, there are two types: Completed Gift SLAT and Incomplete Gift SLAT. The Completed Gift SLAT tends to be the most common; however, it is important to understand the similarities and differences between the two as they share many characteristics but with key differences in how the gifts are treated for tax purposes.

Similarities:

• Irrevocable Nature: Once established, both the Completed Gift SLAT and Incomplete Gift SLAT cannot be altered or revoked.
• Beneficiary Access: In both types of SLATs, the non-donor spouse can access the trust’s income and, under certain conditions, the principal.

Differences:

• Gift Tax Treatment:
  • Completed Gift SLAT: Transfers to the SLAT are considered completed gifts, utilizing the donor’s lifetime gift tax exemption.
  • Incomplete Gift SLAT: Transfers to the SLAT are considered incomplete gifts for tax purposes, meaning they do not utilize the donor’s lifetime gift tax exemption.
• Estate Tax Benefits:
  • Completed Gift SLAT: Assets transferred to the SLAT are removed from the donor’s estate, reducing potential estate taxes.
  • Incomplete Gift SLAT: While the assets may still be included in the donor’s estate, they are protected from creditors and provide other non-tax benefits.

SLATs are considered a powerful planning tool for married couples looking to transfer wealth, reduce estate taxes, and protect assets. South Dakota’s favorable trust laws enhance the benefits of both Completed Gift and Incomplete Gift SLATs and understanding the differences between these two types of SLATs can help in choosing the right strategy for your client’s estate planning needs.

For more information on Spousal Lifetime Access Trusts (SLATs) and how they combine with South Dakota’s modern trust laws to create powerful planning opportunities for advisors and their clients, please contact us via our contact page or by calling (605) 224-9189.

Bridgeford Trust Company is thrilled to once again be the headline sponsor and a featured speaker at STEP LA’s 16th Annual International Tax & Estate Planning Forum. This event will take place on June 13-14, 2024, at the Terranea Resort in Rancho Palos Verdes, CA.

This highly anticipated forum will explore the latest issues in international private client planning, with presentations from leading national and international experts, including our Co-Founder and Chairman, David Warren. David will join a distinguished panel featuring Hanna Marais, Director at Legato Trust and Fiduciary Services, and Sarajane Kempster, Head of Fiduciary Clients at Royal Bank of Canada (RBC) Wealth Management. The panel will delve into the topic of well-settled trusts amid global challenges such as wars, terrorism, economic instability, and personal insecurity. They will discuss key considerations for locating, structuring, funding, and administering trusts to navigate these challenges and address their settlors’ personal and eleemosynary objectives for the future preservation, deployment, and enjoyment of their personal wealth.

The Power of U.S. Trusts for International Families

Despite current global uncertainties, the United States continues to be the jurisdiction of choice for international families because of powerful modern trust law planning tools available in top-tier jurisdictions such as South Dakota, including Domestic Asset Protection Trusts and progressive privacy trust laws and tax planning opportunities. These are just a few of the unique planning solutions available under South Dakota law that are important for families across the globe to consider when selecting the best U.S. trust jurisdiction.

If you are attending the forum, we invite you to visit our booth to discuss these powerful U.S. trust strategies with David and Doug Mikkonen, Senior Vice President and Senior Trust Officer. We look forward to connecting and exploring how we can collaborate to best serve the international community.

Bridgeford Dinner at STEP LA

Bridgeford’s team will be hosting a dinner at Nelson’s restaurant, located on-site at the Terranea Resort, after the first day’s events. The dinner is scheduled for Thursday, June 13, 2024, at 7:00 PM. Seating is limited, so if you would like to join us, please RSVP to mroberson@bridgefordtrust.com.

Contact Us

We hope to see you in California! For more details about the event, visit STEP LA’s website by clicking here. If you are unable to attend but want to learn more about David’s presentation and the topics discussed, please reach out to us via our contact form or call us at (605) 224-9189.

In the realm of trust planning and charitable giving, a South Dakota Charitable Remainder Trust (CRT) emerges as a powerful tool for high and ultra-high-net-worth individuals and families seeking both philanthropic impact and tax efficiency. Essentially, a CRT will provide families with immediate income tax deduction, a lifetime stream of income, and a waiver of capital gains taxes owed on contributed property.

At its core, a CRT aligns assets with charitable intent. Similar to a Purpose Trust which does not name a specific remainder person, a CRT is another powerful planning tool that allows individuals and families the option to generate income while still supporting a particular charity or “purpose.” South Dakota’s progressive trust laws enhance this planning opportunity by blending strong asset protection provisions, privacy, and the absence of state income tax, allowing a grantor’s charitable causes to seamlessly intertwine with their financial goals while maintaining direction and control through the use of directed trusts and trust protectors.

Creating a Charitable Remainder Trust (CRT)

The creation of a CRT involves an individual (the grantor) establishing an irrevocable trust and transferring assets, such as cash, securities, or real estate, into the trust. The trust yields income to a designated beneficiary (often the grantor or another individual) for a specified period, which can be a fixed number of years or the lifetime of the beneficiary. After the income period, the remaining assets in the trust go to a charitable organization or foundation, designated at the time of the trust creation.

Unlocking Tax Benefits Through Charitable Deductions

One of the notable advantages of a CRT lies in the grantor receiving a charitable deduction for the present value of the charitable remainder interest. This not only aligns with philanthropic goals but also presents a strategic approach to tax planning, potentially yielding significant tax benefits.

Understanding CRATs and CRUTs

Distinguishing between Charitable Remainder Annuity Trusts (CRATs) and Charitable Remainder Unitrusts (CRUTs) unveils nuanced options for tailoring strategies. While a CRAT offers a constant payout, maintaining a fixed percentage of the initial trust contribution throughout the trust term, a CRUT adapts by disbursing to the income beneficiary a fixed percentage multiplied by the trust’s fair market value each year for the designated trust duration. Understanding these categories empowers practitioners to tailor solutions that suit the unique needs of their clients.

Bridgeford Trust Company can assist in creating optimal charitable giving strategies that put direction and control into the hands of settlors through the use of powerful modern trust law, bringing asset protection and privacy while offering significant tax benefits. To learn more, please contact us via our contact page or by calling (605) 224-9189.

In today’s rapidly evolving and dynamic cross-border planning landscape, the U.S. has emerged as both a privacy and tax “haven” for international families, creating increased demand for U.S. trust solutions specifically in top-tier jurisdictions such as South Dakota. Given this burgeoning opportunity, we are excited to announce the launch of Bridgeford Global, the newest addition to the Bridgeford family of companies. Operating as the worldwide planning entity within our family of companies, Bridgeford Global is poised to meet the evolving needs of international families and their advisors with innovative solutions and unmatched expertise.

With our international reach expanding exponentially, Bridgeford Global will not only promote the power of U.S. modern trust law and South Dakota-based fiduciary solutions, but the company will also provide offshore fiduciary and corporate services as well as sophisticated insurance solutions. Bridgeford Global’s comprehensive services, delivered by a highly experienced team of professionals offering specialized expertise to wealthy families worldwide, include:

• South Dakota-Based Fiduciary Solutions through Bridgeford Trust Company: Bridgeford Global offers specialized expertise to international families, delivering unique fiduciary planning solutions and structures available under South Dakota’s powerful modern trust law. Domestic Asset Protection Trusts and Foreign Grantor Trusts as well as access to industry leading privacy laws and strategic tax planning opportunities are just a few of the solutions that make the U.S., and specifically South Dakota, the jurisdiction of choice for not only domestic families, but also international families seeking innovative and progressive fiduciary services.

• Offshore Fiduciary and Corporate Services for Non-U.S. Clients: In addition to our South Dakota-based fiduciary solutions, Bridgeford Global extends its reach globally through strategic alliances with international service providers. This enables Bridgeford’s family of companies to seamlessly offer both domestic and offshore fiduciary and corporate services tailored to the needs of our non-U.S. clients while ensuring that clients receive comprehensive support, guidance, and expertise designed for their individual needs and objectives.

• Registered Insurance Agency in Florida Offering Sophisticated Insurance Solutions: As a registered insurance agency in the state of Florida, Bridgeford Global delivers sophisticated insurance solutions, including but not limited to Private Placement Life Insurance (PPLI), to U.S. and non-U.S. clients. By leveraging our expertise and strategic alliances, we provide comprehensive insurance strategies that align perfectly with our fiduciary and structuring capabilities both domestically and offshore, serving our client’s diverse planning objectives in the international space.

Mariano Marco

In addition to this exciting evolution to the Bridgeford family of companies, we are pleased to introduce Mariano Marco as Global Managing Director of Bridgeford Global.

As Global Managing Director, Mariano spearheads planning and business development initiatives in the international space, particularly Latin America, promoting Bridgeford Trust Company’s expansive fiduciary planning and structuring capabilities. With a focus on asset protection, privacy, tax optimization, and succession planning, Mariano brings the power, sophistication, and stability of U.S. modern trust law to families and their advisors across the globe.

Beginning his career as a private client lawyer, Mariano practiced law at a prestigious law firm in Argentina before transitioning into fiduciary services. With over 17 years of experience in private wealth and trust and estate matters, Mariano has expertise in both domestic and offshore planning and specializes in cross-border structuring, fiduciary and corporate administration, and tax consultancy across various jurisdictions. Prior to joining Bridgeford Global, Mariano held pivotal roles including Trust Officer at a single-family office, as well as senior roles both at JTC and Trident as Managing Director overseeing wealth structuring solutions for clients across Latin America and the Americas, with cross-border strategies extending into Europe and the Caribbean. Fluent in Spanish and English, Mariano also possesses intermediate proficiency in Portuguese and basic skills in Italian.

David Warren, Co-Founder and Chairman of Bridgeford Trust Company, shares, “Mariano, whom I have known for many years, is an outstanding fiduciary professional with exceptional international experience working with families across the globe, particularly in Latin America. We could not be more thrilled to welcome Mariano to the team as we take Bridgeford Global’s initiative to exciting new heights.”

Meet Mariano Marco: Leading Bridgeford Global’s International Presence

Gain valuable insight into Mariano’s background, capabilities, and strategic direction for Bridgeford Global by tuning in to an exclusive podcast episode, hosted by David Warren. You can listen on Bridgeford’s podcast page, Apple Podcasts, iHeartRadio, Spotify, and SoundCloud.



And for those of you in and around Miami, please stay tuned for future events welcoming Mariano to our team and celebrating the launch of Bridgeford Global!

Bridgeford Trust Company – now the oldest and largest independently held and privately owned South Dakota chartered trust company – and Bridgeford Global are perfectly positioned to serve families globally as an international fiduciary provider that is big enough to matter, small enough to care. We encourage you to learn more at: www.bridgefordglobal.com.

You can reach out to Mariano directly at mmarco@bridgefordglobal.com and (305) 347-5129 as well as connect with him on LinkedIn. For questions or further information on this evolution of the Bridgeford family of companies in the international space, please contact us via our contact page or call us at (605) 224-9189.

Bridgeford Trust Company is once again proud to sponsor the 19th Annual International Estate Planning Institute, presented by the New York State Bar Association (NYSBA) and STEP New York. Taking place on March 14-15, 2024, at the New York Hilton Midtown, this two-day Institute is a much-anticipated annual event at which trust and estate practitioners, bankers, and accountants from around the world gather to hear leaders in their fields exchange ideas and discuss developments regarding cross-border planning with a U.S. component.

Our team will be attending this year’s Institute and would love to talk to you about how we may be able to collaborate to best serve the international community. If you are going to be there, be sure to stop by Bridgeford’s exhibit table or contact us so we can meet at one of the events or grab a drink or dinner together!

The Power of U.S. Trusts for International Families

The United States continues to be the jurisdiction of choice for international families because of powerful modern trust law planning tools available in top-tier jurisdictions such as South Dakota.

• Explore the unique planning solutions available under South Dakota law, including Foreign Grantor Trusts and Domestic Asset Protection Trusts.
• Discover progressive privacy trust laws and tax planning opportunities that make the United States, and specifically South Dakota, the jurisdiction of choice for international families.

We invite you to watch our webinar – The U.S. as the International Trust Jurisdiction of Choice for Privacy, Asset Protection, and Tax Planning. In it, our team examines worldwide factors for the historic movement of money into the U.S., objectively compares the leading top-tier U.S. trust jurisdictions, and discusses in greater detail the unique planning solutions mentioned above, providing valuable insights for advisors and international families to consider when selecting the best U.S. trust situs.

Bridgeford Trust Company: Big Enough to Matter, Small Enough to Care

Now the oldest and largest independently owned South Dakota chartered trust company, Bridgeford Trust Company is eager to network and share insights at this esteemed event. We are passionate about “big ideas” and have embraced the new trust industry paradigm with a conflict-free, personalized, and non-institutionalized approach that allows us to deliver unmatched direction and control to clients and their advisors.

We hope to see you in NYC! If you would like additional details about the event, you can visit the Institute website by clicking here.