Community Property Spousal Trusts
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South Dakota’s Community Property Spousal Trust is typically created as a Revocable Living Trust that helps clients avoid the probate process, as well as greatly reduce capital gains tax. The trust treats the property as community property at the death of the first spouse, applying a 100% step-up in basis at date of death, therefore, avoiding federal capital gains taxation of marital/trust assets when sold.
The South Dakota Community Property Spousal Trust
The Community Property Spousal Trust avoids federal capital gains taxation of marital/trust assets when subsequently sold, as opposed to non-community property states, where the step-up in basis at date of death is only 50%. This means that taxes would be owed on the remaining 50% of the cost basis of the marital property when sold.
This Community Property Spousal Trust achieves significant federal and state tax savings over subsequent generations by combining its benefits with the federal estate tax benefits of a dynasty trust in a jurisdiction that does not have an income tax with the potential to avoid federal estate tax and state income tax on undistributed income forever.
The Stuart Green Law Approach
A Modern Approach to Family Wealth
Stuart Green Law combines modern South Dakota trust law with integrated estate planning, wealth management, and fiduciary services for families throughout the United States and internationally. The firm’s approach is built around selecting the strongest legal framework available, maintaining continuity of planning judgment, and bringing every part of the family’s wealth strategy into alignment with its long-term objectives.
Perspectives on Modern Estate Planning
Modern estate planning continues to evolve alongside trust law, tax strategy, wealth management, and family governance. Our articles explore the ideas shaping sophisticated estate planning, providing thoughtful analysis of the legal structures and planning philosophies that preserve wealth across generations.
