The South Dakota Family Advisor is another modern trust law tool that delivers far more control to settlors of trusts, beneficiaries, and their advisors than ever before when used in conjunction with a directed trust. South Dakota is the only state in the nation to have enacted progressive new legislation, statutorily creating the South Dakota Family Advisor.
The Family Advisor role is similar to the Trust Protector and is referred to as “Trust Protector Light” because of its non-fiduciary status and limited powers. It is an excellent option for settlors of trusts and beneficiaries who may want family advisors – such as attorneys, CPAs, or investment advisors – to have the power to modify, control, and participate in many important aspects of trust administration without elevating the position to that of a fiduciary, which carries with it heightened liability that may deter advisors from serving.
We invite you to watch the video below for a discussion around the Family Advisor role and how it can be incorporated into the trust planning process.
The Family Advisor, only available under South Dakota law, is yet another affirmation of South Dakota’s status as the most progressive trust jurisdiction in the nation. Please contact Bridgeford Trust via our contact page for more information.