article: The great American tax haven: why the super-rich love South Dakota

[Martin Everson]

Can someone please explain in plain English words when a South Dakota Trust would be beneficial?

What type of South Dakota Trust as there are multiple types.

E.g., is this only useful for US persons?

No

Is the main use case inheritance

No

would it also make sense for someone who wants to spend the money before death?

I can't answer that

Besides lawyer fees, what are the downsides of putting money in a South Dakota Trust?

Trustee fees, banking issues, endless compliance paperwork and total loss of control of assets depending on the type of trust chosen.

Do these structures restrict how funds can be used and by whom (related to above question)?

In principle you don't own the assets once they are placed in a trust and the assets are controlled by the trustees for the benefit of the beneficiaries according to your written letter of wishes.

Basically get professional advice from over that side of pond. Me personally I would avoid everything US for banking and trusts.

P.S This is an old thread