U.S. Trusts and LLCs: A Strategic Solution for Global Families and Investors

When a Latin American family recently sold a commercial property in Florida, their advisors structured the deal through a South Dakota Trust holding a U.S. Limited Liability Company (“LLC”).

The result?

No U.S. estate or inheritance tax, avoidance of Foreign Investment in Real Property Tax Act (“FIRPTA”) withholding on sale, and secure generational transfer through a perpetual trust structure, entirely U.S.-compliant and confidential.

This is just one example of how international families are using U.S. structures to protect global wealth, reduce tax exposure, and plan. With rising scrutiny around asset ownership and global reporting, the combination of South Dakota Trusts and U.S. LLCs offers a proven, flexible solution.

Recent shifts in global tax reporting, compliance, and wealth regulation have created renewed urgency for high-net-worth individuals and families to reassess how they structure and transfer wealth. For many non-U.S. persons, direct ownership or control of global assets now comes with heightened tax exposure and complex estate planning challenges.

A fully U.S.-compliant jurisdiction offering modern, protective, and flexible trust and company laws can offer a stable solution. South Dakota stands out.

Why South Dakota?

South Dakota trusts provide a rare combination of tax efficiency, long-term control, and regulatory clarity. Backed by the strength of the U.S. legal system, the state offers one of the most sophisticated and cost-effective trust regimes in the world.

Key Trust Benefits

• No U.S. income, estate, gift, or inheritance tax for non-U.S. persons
• Perpetual duration for legacy planning
• Protection from forced heirship claims
• No reporting obligations for grantors and beneficiaries
• Robust trustee oversight from the South Dakota Division of Banking

Complementary Structures: The Power of U.S. LLCs

Trusts can hold a variety of assets, including U.S. LLCs, creating powerful structuring options. Properly set up, LLCs provide:

• Limited liability protection
• Pass-through taxation or disregarded entity status
• Privacy in jurisdictions like South Dakota, Delaware, and Wyoming
• Ease of formation and low maintenance costs

Common Use Cases for LLCs

• US Real Estate Ownership

  • Protects owners from personal liability, allows for expense deductions, and (if structured as a multi-member LLC) can avoid FIRPTA withholding upon sale.

• Investment Accounts

  • Foreign-owned single-member LLCs can simplify access to U.S. markets and reduce withholding tax on U.S. income.

• Commercial Activities

  • With proper structuring, non-U.S. owners can avoid U.S. tax if income is not "Effectively Connected Income (“ECI”)." LLCs also project a stronger image than traditional offshore jurisdictions.

• Asset Holding Companies

  • LLCs can act as holding vehicles for international investments, offering confidentiality, simplicity, and protection.

Tailored Structuring with Amicorp

Amicorp Trustees (South Dakota), LLC supports the establishment and management of:

• Foreign Non-Grantor Trusts
• Domestic U.S. Trusts
• Private Trust Companies
• Multi-purpose LLCs in South Dakota, Delaware, Wyoming, and other states

Each structure is tailored to suit client objectives, from cross-border succession planning to investment access and operational flexibility.

In addition, when utilizing U.S. financial institutions, clients are not subject to Common Reporting Standard (“CRS”) rules, they benefit from financial institution protections (FDIC/SIPC), as well as have access to one of the world’s most secure and cost-efficient financial systems.

A Jurisdiction for the Future

As wealth planning becomes more transparent and globally regulated, South Dakota and complementary U.S. structures continue to provide control, protection, and opportunity for global families and investors.

Explore how Amicorp can help you structure with confidence. Contact our team here to find out more.