Why South Dakota Is the Premier Trust Jurisdiction: Privacy (Part 1)
I’m beginning a new series dedicated to explaining why South Dakota is the premier trust jurisdiction in the United States. Throughout this series, I’ll do side-by-side comparisons to show how South Dakota outperforms other trust-friendly states such as Nevada, Wyoming, Delaware, Alaska, Tennessee, and Ohio. This is the first installment, and today’s focus is on one of the most important yet overlooked features: privacy.
The Leading Trust Jurisdictions
If you do a quick Google search, you’ll find that several states are recognized as having advanced trust laws. These often include Wyoming, Delaware, Alaska, South Dakota, Nevada, Tennessee, and Ohio. Among them, South Dakota and Nevada consistently lead the pack, thanks to their progressive and flexible trust statutes. But South Dakota has key advantages that set it apart—and we’ll explore those, starting with privacy.
Privacy Advantage #1: Quiet Trust Laws
In most states, once a beneficiary reaches a certain age, they are legally entitled to information about the trust they benefit from. This can include:
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The fact that they are a beneficiary
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The nature and value of trust assets
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Financial statements
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The identity of the trustee
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Distribution rights and access to withdrawals
However, there are many reasons a trust settlor (the person setting up the trust) might not want this information disclosed—or at least want discretion over how and when it is shared. For example:
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A beneficiary may be under undue influence from a spouse or peer
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They might struggle with substance dependency
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The settlor may simply want to avoid creating a “trust fund baby” dynamic
This is where South Dakota’s quiet trust laws stand out. These laws allow the settlor to:
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Limit or eliminate what information a beneficiary receives
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Delegate discretion to a trustee or trust protector about whether and when to reveal trust information
Importantly, this can vary between generations. For example, if the first generation of beneficiaries is responsible and trustworthy, full transparency may be appropriate. But for the next generation—who may lack maturity or sound judgment—the trustee can be empowered to withhold information. This customizable privacy structure is a significant benefit that no other state matches as robustly as South Dakota.
Privacy Advantage #2: Perpetual Court Seal
The second major privacy feature is South Dakota’s perpetual seal on court proceedings involving trusts. If any litigation or court proceeding arises concerning a trust:
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The records are automatically sealed
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This seal is not subject to judicial discretion
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The seal is permanent and indefinite, keeping trust matters out of the public domain
While Nevada and Delaware offer similar protections, there are key differences:
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In Nevada, the court seal is optional and left to the judge’s discretion
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In Delaware, the judge also has discretion, and any seal is limited to a maximum of three years
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In contrast, South Dakota’s seal is mandatory and permanent, with no expiration and no discretion involved
If privacy matters to you—and you’re taking the time to shop around for the best jurisdiction for your trust planning—South Dakota is the obvious choice. Why risk a judge’s discretion or a time-limited seal in another state when South Dakota offers ironclad privacy protections by law?
Conclusion: South Dakota Wins on Privacy
When it comes to trust privacy, no other state offers the combination of:
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Quiet trust laws that give you full control over beneficiary disclosures
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Mandatory, perpetual court seals that protect sensitive legal matters forever
If you’re going to go through the process of advanced trust planning, you want to do it in a jurisdiction that maximizes your control, privacy, and protection. And in that regard, South Dakota stands alone.