Top-rated and unique South Dakota statute allows client to keep trust and trust information quiet from the beneficiary both during the grantor’s life and after their death or incapacity.
Generally, a trustee is required to notify a trust’s qualified beneficiaries of the trust’s existence as well as to provide them with trust information. However, in the interest of asset protection, family values, unprepared family members, or other reasons, some grantors and/or families may not want the trust beneficiaries to know of the existence of the trust and trust assets, or to receive trust assets.
South Dakota allows for beneficiary waiver of notice, but also provides that the grantor, trust advisor or trust protector, by the terms of the governing instrument, may expand, restrict, eliminate, or otherwise modify the rights of beneficiaries to information relating to a trust. This allows for the South Dakota trust to remain quiet even after the grantor’s death or disability. The trust protector can determine when it is appropriate to notify one or more beneficiaries regarding the trust.
Source: “Should You Keep a Trust Quiet (Silent) From Beneficiaries?” Trusts & Estates: April 2015
