About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

62 S.D. L. Rev. 266 (2017)
A Bellwether of Modern Trust Concepts: A Historical Review of South Dakota's Powerful Trust Laws

handle is hein.journals/sdlr62 and id is 302 raw text is: 






           A  BELLWETHER OF MODERN TRUST CONCEPTS:
A  HISTORICAL REVIEW OF SOUTH DAKOTA'S POWERFUL TRUST
                                        LAWS


                  AL  W.  KING,  III & PIERCE  H. MCDOWELL, IIIf


        This article reviews  the  evolution of South  Dakota's  powerful   trust, tax,
and  asset protection   laws  as well  as the rationale  behind  these  historic laws.
The  discussion  will also  highlight  the support  that both  the trust industry and
supporting   legislation have received  over  the years from  the current  and former
governorsI   state legislatures, the South  Dakota   Division  of Banking,2  the South
Dakota   Division  of Insurance,3  as well  as the South  Dakota   Trust  Committee,4


f Al W.  King, III and Pierce H. McDowell, III are the Co-Founders, Co-Chairmen, and Co-Chief
Executives of South Dakota Trust Company LLC (SDTC). SDTC, founded in 2002, is a national trust
boutique serving wealthy families all over the world with currently more than $35 billion in assets under
administration. Prior to forming SDTC, Mr. King and Mr. McDowell were responsible for the founding
of Citicorp Trust South Dakota in 1995. During that time, Mr. King served as Managing Director and
National Director of Estate Planning for Citigroup (1992-2001) and Vice Chairman of Citicorp Trust
South Dakota (1995-2001). Mr. McDowell served as President and Chief Trust Officer of Citicorp Trust
South Dakota (1995-2001). This article is based on a presentation given by the authors at The South
Dakota Law Review Symposium on April 1, 2016, with the same title.
     1.  Governor Bill Janklow (1979-1987 and 1995-2003), Governor George S. Mickelson (1987-
1993), Governor Walter Dale Miller (1993-1995), Governor Mike Rounds (2003-2011) and Dennis
Daugaard (2011-present). South Dakota: Past Governors Bios, NAT'L. GOVERNORS Ass. (Apr. 7,
2017), https://www.nga.org/cms/home/governors/past-governors-bios/page-southdakota.html.
    2.   Director Richard Duncan, Director Roger Novotny and Director Bret Afdahl (current). Past
Directors of the Division of Banking, S.D. DEP'T. OF LABOR & REG. DIVISION OF BANKING (Apr. 7,
2017), www.dlr.sd.gov/banking/about-us pastdirectors.aspx.
    3.   Directors: Larry Deiter (2015 - Present), Merle D. Scheiber (2005-2014), Gary Steuck (2003-
2005) Wendell Malsam (2003) Darla Lyon (1991-2003), Mary Jane Cleary (1987-1991), Susan Walker
(1983-1987) and Henry Lussem Jr. (1980-1983).
    4.   In October 1997, Governor Bill Janklow signed Executive Order 97-10 establishing the first
Trust Task Force in South Dakota. STATE OF SouTH DAKOTA OFFICE OF THE GOVERNOR EXECUTIVE
ORDER                                    97-10                                   (1997),
http://dlr.sd.gov/banking/trusts/trust-taskforcedocuments/executive-order_97_1O.pdf.  The original
Trust Task Force members in 1997 were: Frances Becker (Rushmore Bank & Trust, currently South
Dakota Trust Company LLC); Richard J. Corcoran (First National Bank Sioux Falls); the Honorable
Barbara Everist (State Senator); Thomas J. Flynn (First Bank Systems); Thomas H. Foye (Bangs,
McCullen, Foye & Simmons); Charles M. Habbab (Norwest Bank); David L. Knudson (Chief of Staff
for Governor; Davenport, Evans, Hurwitz & Smith); Bruce 0. Ley (Bank of the West); Pierce H.
McDowell  III (Citicorp Trust South Dakota, currently South Dakota Trust Company LLC). South
Dakota Task Force on Trust Administration Review and Reform Membership, S.D. DEP'T. OF LABOR &
REG.         DIVISION         OF         BANKING         (Jan.        13,        2017),
https://dlr.sd.gov/banking/trusts/trust task forcedocuments/trustjtask forcemembership.pdf. Current
Trust Task Force members are: Mark G. Mickelson (Mickelson & Company, LLC); Robin Aden (First
Bank &  Trust); Frances Becker (South Dakota Trust Company LLC); Todd J. Bernhard (Delta Trust);
Jennifer E. Bunkers (Boyce Law Firm); Jeb Clarkson (Pioneer Bank & Trust); Richard J. Corcoran (The
First National Bank in Sioux Falls); Dan Donohue (Davenport, Evans, Hurwitz & Smith, LLP); Patrick
G. Goetzinger (Gunderson, Palmer, Nelson & Ashmore, LLP); Bradley C. Grossenburg (Woods, Fuller,
Shultz & Smith, PC); Charles M. Habhab (at large); Dave G. Hottman (First Premier Bank) Pierce H.
McDowell,  III (South Dakota Trust Company LLC); Terry Prendergast (Murphy, Goldammer &
Prendergast, LLP); Peter J. Randazzo (Citicorp Trust South Dakota); Carl A. Schmidtman (Dorsey &
Whitney Trust Company, LLC); Thomas Simmons (University of South Dakota School of Law); Mark

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most