Choosing a Directed Trust
for Your Wealth Management

What is a Directed Trust?

A Directed Trust is a specialized form of a standard trust. A standard trust is a financial arrangement that allows a trustee to hold funds or assets on behalf of a beneficiary. In a Directed Trust, the account holder can direct the management and distribution of the funds. In both cases, benefits include wealth-building tax strategies and asset protection from external parties.

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How Does a Directed Trust Work?

Trusts work with a three-point system of management:

An Investment Manager advises and manages the Trust’s assets.

A distribution committee decides who will receive distributions and under what circumstances.

An administrative trustee provides the legal and tax services that allow the trust to function.

In a Directed Trust, the account holder can direct each of these roles. Private financial teams can be brought in to assist with investment management, the account holder can direct distributions, and the trust company will take care of the technical implementation.

Empowering Your Wealth: Understanding Directed Trusts and Their Strategic Advantages

Are you interested to learn more about Directed Trusts? Watch our latest webinar replay! Join Kevin McNee, Director of Trust Services at Madison Trust, as he delves into the world of Directed Trusts and how they can potentially revolutionize your approach to estate planning, asset protection, and wealth management.

Why is South Dakota a Good Base for a Directed Trust?

South Dakota has enacted a number of laws that make the state especially favorable
for the establishment of a Directed Trust.

1. South Dakota has no state income tax, which allows wealth to grow without any unnecessary reduction.

2. There is no law against perpetuities. This means that a Directed Trust can last as long as desired and avoid federal estate tax for the entire duration of the trust.

3. South Dakota's strong spendthrift provisions protect clients and their assets from the aggressive claims of creditors.

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Who Should Take Advantage of a Directed Trust?

The Directed Trust is a fit for those who have substantial assets which will not be used to fund retirement. With a Directed Trust, you can manage those assets and optimize your family’s continued wealth. This platform ensures a smooth financial transition for your loved ones while maintaining your direction of the assets in the present.

Take Your Investments Further With a Directed Trust

Are you ready to ensure the security of your wealth and gain control? Reach out to us today to learn more about what a Directed Trust is and how it can work for your estate planning.

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Why Madison Trust?

Madison Trust brings together the industry’s highest rated Trust company with the superior legal protection of South Dakota. We understand these assets are dedicated for your family and we want to give you every advantage available.

The Madison Trust team operates with a “client-first” philosophy and places the highest priority on our clients’ needs.

Madison Trust works with you to find the account structure that best suits your financial needs. Then, we provide the tools to make it happen. You can retain the right to direct investments and distributions or you can rely on the Madison Trust team to deliver your vision. Whatever your assets need, we can find a workable solution.

For Directed Trust services, Madison Trust provides exceptional back-end management.

Madison Trust’s attention to detail, efficiency of process, and dedication to client support has catapulted it to become the industry’s highest rated self-directed Trust company.

Getting Started with a Directed Trust

Are you ready to ensure the security of your wealth and take control? Speak with a Madison Trust Specialist and get educated on how a Directed Trust can work for your estate.

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Choosing a Directed Trustfor Your Wealth Management