Why is South Dakota so popular for trusts?

There are several reasons why someone might create a trust in South Dakota. Some common reasons include:

To protect assets from creditors or lawsuits
To manage assets for the benefit of a minor or other individual who is unable to do so themselves
To reduce estate taxes and avoid probate
To provide for the smooth and efficient transfer of assets to beneficiaries

South Dakota is a popular state for trust creation because it has favorable trust laws, including a high exemption from estate taxes and a relatively low level of state income tax.

Additionally, South Dakota allows for the creation of anonymous trusts, which can provide a high degree of privacy and protection for the trust's assets.