The value of assets held in South Dakota trusts is worth over $800 billion dollars.
The new peak represents a trend of about $100 billion spikes in asset values year over year.
In 2024, the value of assets held in South Dakota trusts rose by $135 billion, from $680 billion to $815 billion. That’s according to values released earlier this month by the state Division of Banking, which tracks the numbers.
Officials say the rise in values represents a worldwide trend — the largest generational transfer of wealth in human history.
“Started a number of years ago. It’s going to go on for—the estimates vary — 10 to 15 more years. But, there’s a huge transfer underway from the boomer generation to the next generation," said Bret Afdahl, the Banking Division director. "There’s a lot of planners out there advising folks of high net worth and they’ve gotten more sophisticated in how they’re executing those plans.”
Since 2018, asset values have jumped around $100 billion annually.
A trust is a legal arrangement, where the person granting the money gives rights to a trustee to hold assets for the benefit of a recipient. Those arrangements can often have parameters. Trusts may also get used to protect assets from legal judgements and taxation.
South Dakota is one of the top trust jurisdictions in the world.
Asset levels dipped at the end 2022 following a brief collapse in cryptocurrency value.
Afdahl said more than half of the growth in 2024 is attributed to directed assets, which are assets that can be actively invested.
“It’s big money," Afdahl said. "The market has gotten a lot more sophisticated in what grantors want and how the execute those plans.”
Since 1994, a governor-appointed task force meets annually to propose tweaks and changes to the state’s trust laws.
Earlier this year, lawmakers passed a change that protects a trustee if the person granting the money wants to use their own tax advisor and that advisor makes a mistake.
That law goes into effect July 1.
