Abstract

South Dakota has unexpectedly become the epicenter for trust assets, attracting billionaires and foreign elites with its legal and tax environment. This Note examines how a combination of legislative innovation and institutional infrastructure propelled the state to the top of the trust industry. Federal laws, such as the Foreign Account Tax Compliance Act, further entrenched South Dakota’s appeal allowing it to function as an onshore tax haven. This Note offers a helpful framework for evaluating the consequences of jurisdictional competition in the trust industry. While South Dakota’s dominance raises concerns about secrecy, it also highlights the complexities of governing mobile wealth in a fragmented federal tax system. By mapping the state’s path to prominence, this Note provides context for ongoing debates about the future of trust regulation in the United States.

Keywords: TrustHavenUSA, SouthDakotaWealthLaws, RegulatingMobileWealth