The state Senate is quickly moving a bill that modifies several provisions of the state’s trust law.
It’s the first since a blockbuster report that detailed the state’s trust law.
The bill is crafted by the Governor’s Trust Task Force. The group is comprised of trust lawyers and bankers. The group was formed in 1997 and meets annually to form a bill that tweaks the state’s trust law.
Jennifer Bunkers is a member of the group. Bunkers said the bill tweaks the state’s trust law to make it more robust and protective of those involved.
“Just adding what we would perceive as, again, just enhancements—small enhancements—to what we have currently under out statutes. Pretty uncontroversial," Bunkers said. "We’re not trying to make wholesale changes of anything. Just a nudge in either direction.”
Current trust law requires a ‘wet’ signature when executing a trust. Senate Bill 95 allows for electronic execution of trust documents. Supporters say it will save time and money for printing and mailing documents.
It’s an 8-page, 16 section bill. Senate commerce and energy spent less than 8 minutes discussing it. There was no debate on the Senate floor. It passed 33 to 2.
It’s the first such bill since The Pandora Papers report, which offered financial details about how South Dakota became a destination for the world’s global elite to place their assets.
Bunkers said the Pandora Papers showed how well the state runs the industry.
“How well regulated it is, not only by our division of banking, but federally as well. It was really a lot to do about nothing," Bunkers said. "Those that operate good businesses and families that have genuine, legitimate interest in protecting their wealth understand that and are unaffected by that noise.”
Since 2018, assets sitting in trusts run by South Dakota companies has grown by about $100 billion annually. As of December 31, 2021, there are $607 billion in trust assets.
There are 116 trust companies in South Dakota, an increase of eight. The industry employs about 482 people.
