Along with providing trust and fiduciary services to our clients, Bridgeford Trust Company offers specialized solutions in tax planning and asset protection. Among these solutions is the opportunity to purchase Private Placement Life Insurance (PPLI) within an LLC created and managed by Bridgeford Trust Company, taking advantage of South Dakota’s insurance premium tax – which is the lowest in the U.S at 8 basis points.

This approach highlights the importance of selecting the best U.S. trust jurisdiction in the tax planning process and provides a streamlined way to obtain South Dakota’s low premium tax by utilizing a South Dakota LLC, ultimately bringing South Dakota’s progressive and cutting edge trust laws to the structure.

Our Private Placement Life Insurance LLC (PPLI LLC) service is particularly beneficial for individuals residing outside of South Dakota as it enables them to take advantage of the state’s low premium taxation rates, which can lead to considerable tax savings compared to the higher rates they might face in their home states or jurisdictions. Bridgeford’s family of companies is able to offer this unique planning opportunity, overseeing LLC creation in partnership with a South Dakota attorney and serving as a manager or co-manager for PPLI LLCs, while ensuring our clients receive the full benefits of South Dakota’s tax advantages.

Why Choose South Dakota for Your Private Placement Life Insurance LLC?

Significant Tax Savings

Unlike other states that can charge up to 250 basis points in insurance premium taxes, South Dakota has the lowest state premium tax rate in the nation – 8 basis points for premiums in excess of $100,000, as well as for trusts.

The location where the insurance policy applicant is a resident, domiciled, or sitused is the state that imposes the state premium tax so when the insurance policy is purchased by a South Dakota LLC or trust, the insured’s resident state will not impose a premium tax on the premium paid for the life insurance policy purchased by a South Dakota trust or South Dakota LLC (assuming structured correctly). This difference can translate into substantial savings.

Robust Legal Framework

South Dakota has the benefit, along with premium taxation, of advantageous and comprehensive supporting law. Per South Dakota statute, retaliatory taxation does not apply to “the portion of a life insurance policy’s annual premiums exceeding one hundred thousand dollars.” (SDCL § 58-6-70)

South Dakota’s laws provide a sturdy legal foundation that supports PPLI transactions efficiently, ensuring your assets are managed within a framework designed for protection and growth.

Bridgeford Trust Company’s team has extensive experience managing PPLI transactions (both through trusts and LLCs) with hundreds of structures in place for families across the country and around the world that want to have the advantage of South Dakota’s low premium tax.

To learn more about our PPLI LLC services and how we can provide everything you need to establish and maintain your South Dakota PPLI LLC, call (605) 224-9189 or contact us online.