US TRUST + CANADIAN LP

We are JTC, an independent, award-winning provider of fund, corporate and private wealth services to institutional and private clients.

Established in 1987, we now have around 600 people in offices globally, with assets under administration of c.US$85 billion.

Our independence and shared ownership culture means we share the same priority: the best interests of our clients.

SOUTH DAKOTA - JURISDICTION OF CHOICE

South Dakota is unique as a trust jurisdiction, thanks to a combination of legislative and fiscal advantages that include modern trust laws, robust provisions for asset protection and privacy and the assurance that comes from being located in one of the world’s most economically and politically stable countries.

WHY JTC US TRUSTEES?

  • Global footprint with local experts in offices across five continents
  • Entrepreneurial spirit and can-do attitude
  • We offer both ‘productized’ and ‘tailor-made’ solutions

TYPES OF US TRUST

Domestic vs. Foreign: a trust is deemed a US person and consequently taxed as a ‘domestic trust’ if (i) a US court is entitled to exercise primary supervision over the administration and (ii) US person(s) has the authority to control "all" of the substantial decisions of the trust. If a trust does not pass this "court & control" test it is considered a ‘foreign trust’ and is not taxed in the US, except for US source income.(1)

Directed, delegated, discretionary: South Dakota statutes allow for a segregation of the traditional functions of the trustee. In the established ‘discretionary trust’ the trustee has a primary role in relation to distributions and investment management. The ‘directed trust’ allows for the trustee to focus on day-to-day trust administration while it takes ‘directions’ from an advisor or committee in relation to trust fund investments and/or distributions. In a ‘delegated trust’ the trustee may commission certain duties such as investment management with an advisor or committee. Unlike the directed trust, in the delegated trust the trustee retains a duty to monitor and oversee the advisor or committee’s performance.

Revocable, irrevocable, partially revocable: In broad terms, a ‘revocable trust’ may be altered or terminated at any time during the settlor’s life whereas an ‘irrevocable trust’ may not. The ‘partially revocable trust’ is part revocable, with respect to capital contributed to the trust, and part irrevocable, with respect to income.

US TRUST + CANADIAN LP BENEFITS

  • Confidentiality
  • Asset protection
  • Succession planning
  • Income tax deferral (if trust is irrevocable or partially revocable) (1)
  • Asset flexibility
  • Not subject to Canada income tax (1)
  • Mitigates US estate tax (1)
  • Considered transparent for Mexican tax perspective, which allows tax benefits on investments through Mexican SIC

(1) To be checked by client with legal/tax advisors

FEES (USD)

Set-up fees

12,000
Annual fees
We propose a tiered ad-valorem fee with an annual minimum:  
On the first 5m: 0.20%
On the next 25m (5m to 30m): 0.15%
On the next 30m (30m to 60m): 0.10%
On assets over 60m: 0.05%
Minimum fee: 13,000