S.D. Codified Laws § 55-2-15 — SD Code / Title 55 / Chapter 2 / Section 55-2-15
Trustee authorized to distribute income or principal from first trust may appoint all or part in favor of trustee of second trust--Restrictions--Power of appointment to beneficiary of second trust
Status: in_force

Unless the terms of the governing instrument expressly provide otherwise, if a trustee has discretion under the terms of a governing instrument to make a distribution of income or principal to or for the benefit of one or more beneficiaries of a trust (the "first trust"), whether or not restricted by any standard, then the trustee, independently or with court approval, may exercise discretion by appointing part or all of the income or principal subject to the discretion in favor of a trustee of a second trust (the "second trust") under a governing instrument separate from the governing instrument of the first trust. Before exercising the discretion to appoint and distribute assets to the second trust, the trustee of the first trust shall determine whether the appointment is necessary or desirable after taking into account the purposes of the first trust, the terms and conditions of the second trust, and the consequences of the distribution.

For the purposes of this section, a trustee of the first trust is a restricted trustee if either the trustee is a beneficiary of the first trust or if a beneficiary of the first trust has a power to change the trustees within the meaning of § 55-2-17 .

In addition, the following apply to all appointments made under this section:

(1) The second trust may only have as beneficiaries one or more of the beneficiaries of the first trust:

(a) To or for whom a discretionary distribution of income or principal may be made from the first trust;

(b) To or for whom a distribution of income or principal may be made in the future from the first trust at a time or upon the happening of an event specified under the first trust; or

(c) Both subsections (a) and (b);

(2) A restricted trustee of the first trust may not exercise authority over the first trust to the extent that doing so could have the effect of:

(a) Benefiting the restricted trustee as a beneficiary of the first trust, unless the exercise of authority is limited by an ascertainable standard based on or related to health, education, maintenance, or support; or

(b) Removing restrictions on discretionary distributions to a beneficiary imposed by the governing instrument under which the first trust was created, except that a provision in the second trust, which limits distributions by an ascertainable standard based on or related to the health, education, maintenance, or support of any beneficiary, is permitted, or to a trust pursuant to 42 U.S.C. § 1396p(d)(4) (January 1, 2025);

(3) A restricted trustee of the first trust may not exercise authority over the first trust to the extent that doing so would have the effect of increasing the distributions that can be made from the second trust to the restricted trustees of the first trust or to a beneficiary who may change the trustees of the first trust within the meaning of § 55-2-17 compared to the distributions that can be made to the trustee or beneficiary, as the case may be, under the first trust, unless the exercise of authority is limited by an ascertainable standard based on or related to health, education, maintenance, or support;

(4) The provisions of subdivisions (2) and (3) only apply to restrict the authority of a trustee if either a trustee, or a beneficiary who may change the trustee, is a United States citizen or domiciliary under the Internal Revenue Code, or the trust owns property that would be subject to United States estate or gift taxes if owned directly by the person;

(5) In the case of any trust contributions that have been treated as gifts qualifying for the exclusion from gift tax described in 26 U.S.C. § 2503(b) (January 1, 2026), by reason of the application of 26 U.S.C. § 2503(c) (January 1, 2026), the governing instrument for the second trust must provide that the beneficiary's remainder interest vests no later than the date upon which the interest would have vested under the terms of the governing instrument for the first trust;

(6) The exercise of authority may not reduce any income interest of any income beneficiary of any of the following trusts:

(a) A trust for which a marital deduction has been taken for federal tax purposes under 26 U.S.C. § 2056 or 2523 (January 1, 2026) or for state tax purposes under any comparable provision of applicable state law;

(b) A charitable remainder trust under 26 U.S.C. § 664 (January 1, 2026); or

(c) A grantor retained annuity or unitrust trust under 26 U.S.C. § 2702 (January 1, 2026);

(7) The exercise of authority does not apply to trust property subject to a presently exercisable power of withdrawal held by a trust beneficiary to whom, or for the benefit of whom, the trustee has authority to make distributions, unless after the exercise of authority, the beneficiary's power of withdrawal is unchanged with respect to the trust property;

(8) The exercise of authority is not prohibited by a spendthrift clause or by a provision in the governing instrument, which prohibits amendment or revocation of the trust;

(9) Any appointment made by a trustee is considered a distribution by the trustee pursuant to the trustee's distribution powers and authority; and

(10) If the trustee's distribution discretion is not subject to a standard, or if the trustee's distribution discretion is subject to a standard that does not create a support interest, then the court may review the trustee's determination or any related appointment only pursuant to § 55-1-43 . Any other court review of the trustee's determination or any related appointment may be made only pursuant to § 55-1-42 .

Notwithstanding the foregoing provisions of this section, the governing instrument of the second trust may grant a power of appointment to one or more of the beneficiaries of the second trust who are beneficiaries of the first trust. The power of appointment may include the power to appoint trust property to the holder of the power of appointment, the holder's creditors, the holder's estate, the creditors of the holder's estate, or any other person, whether or not the person is a trust beneficiary.

A trustee's power described in this section may be exercised by either an actual distribution of property to one or more second trusts or by modifying the terms of the first trust to create the second trust with or without an actual distribution. If the power is exercised by modifying the terms of the first trust, the trustee may treat the second trust created by the modification as a new trust, in which case property of the first trust would be transferred to the second trust, or treat the second trust as a continuation of the first trust, for titling purposes, in which case property of the first trust would not need to be retitled.

In the case of an exercise of the power that is structured as a trustee's modification of the first trust, notwithstanding § 55-2-18 , the trustee shall provide at least twenty days' advance written notice to the qualified beneficiaries, applying chapter 55-18 , unless the trustee receives written waivers of the notice from the qualified beneficiaries.

The trustee's power, which is described in and constrained by this section, remains separate and distinct from trust reformation or termination under §§ 55-3-24 to 55-3-26 , inclusive, 55-3-28 , and other provisions of law allowing trust modifications.

This section applies to any trust administered under the laws of this state, including a trust for which the governing jurisdiction is transferred to this state.

Source: SL 2007, ch 281, § 1; SL 2008, ch 257, § 11; SL 2009, ch 252, § 17; SL 2011, ch 212, § 10; SL 2012, ch 233, § 4; SL 2013, ch 239, § 16; SL 2017, ch 204, § 18; SL 2021, ch 207, § 4; SL 2025, ch 196, § 6; SL 2026, ch 198, § 2.
S.D. Codified Laws § 55-18-13 — SD Code / Title 55 / Chapter 18 / Section 55-18-13
Representative with conflict of interest
Status: in_force

A representative with a conflict of interest with respect to the matter in question may bind the person that the representative represents notwithstanding any cause of action that the represented person may have against a representative who acts knowingly.

Source: SL 2017, ch 208, § 13.
S.D. Codified Laws § 55-2-13.1 — SD Code / Title 55 / Chapter 2 / Section 55-2-13.1
Information to be provided to excluded fiduciaries--Liability limits of trustee
Status: in_force

A trust advisor, trust protector, or other fiduciary designated by the terms of the trust shall keep each excluded fiduciary designated by the terms of the trust reasonably informed about:

(1) The administration of the trust with respect to any specific duty or function being performed by the trust advisor, trust protector, or other fiduciary to the extent that the duty or function would normally be performed by the excluded fiduciary or to the extent that providing such information to the excluded fiduciary is reasonably necessary for the excluded fiduciary to perform its duties; and

(2) Any other material information that the excluded fiduciary would be required to disclose to the qualified beneficiaries, regardless of whether the terms of the trust relieve the excluded fiduciary from providing such information to the qualified beneficiaries pursuant to § 55-2-13 .

The limitation of the liability of the excluded fiduciary is not affected by the performance of the actions required above or the failure of a trust advisor, trust protector, or other fiduciary designated pursuant to the terms of the governing instrument, to perform any such actions.

Source: SL 2023, ch 161, § 8.
S.D. Codified Laws § 55-4-7 — SD Code / Title 55 / Chapter 4 / Section 55-4-7
Creation of trust--Bank account to pay special debts
Status: in_force

Whenever a bank account shall, by entries made on the books of the depositor and the bank at the time of the deposit, be created exclusively for the purpose of paying dividends, interest or interest coupons, salaries, wages, or pensions or other benefits to employees, and the depositor at the time of opening such account does not expressly otherwise declare, the depositor shall be deemed a trustee of such account for the creditors to be paid therefrom, subject to such power of revocation as the depositor may have reserved by agreement with the bank.

Source: SL 1943, ch 308, § 2; SDC Supp 1960, § 59.0502 (1).
S.D. Codified Laws § 55-1A-2 — SD Code / Title 55 / Chapter 1A / Section 55-1A-2
Trustee defined
Status: in_force

As used in this chapter, the word, trustee, means any natural or legal person or persons acting as an original, substitute, added, or successor trustee of a testamentary or inter vivos trust, whichever in a particular case is appropriate.

Source: SL 1979, ch 336, § 1.
S.D. Codified Laws § 55-4-27 — SD Code / Title 55 / Chapter 4 / Section 55-4-27
Tort liability of trust estate--Action against trustee, notice to beneficiaries
Status: in_force

No judgment shall be rendered in favor of the plaintiff in an action pursuant to § 55-4-25 unless he proves that within thirty days after the beginning of the action, or within such other period as the court may fix and more than thirty days prior to obtaining the judgment, he notified each of the beneficiaries known to the trustee who then had a present interest of the existence and nature of the action. Such notice shall be given by mailing copies thereof in postpaid envelopes addressed to such beneficiaries at their last known addresses. The trustee shall furnish the plaintiff a list of such beneficiaries and their addresses, within ten days after written demand therefor, and notification of the persons on such list shall constitute compliance with the duty placed on the plaintiff by this section.

Source: SL 1943, ch 308, § 14; SDC Supp 1960, § 59.0514 (3).
S.D. Codified Laws § 55-1A-41 — SD Code / Title 55 / Chapter 1A / Section 55-1A-41
Co-trustee appointment--Powers
Status: in_force

Unless specifically restricted by the governing instrument, a trustee may appoint an individual or a corporate fiduciary as a co-trustee. The appointed co-trustee may serve only as long as the appointing trustee serves, or as long as the last to serve if more than one trustee appointed the co-trustee. The appointed co-trustee may not become a successor trustee upon the death, resignation, or incapacity of the appointing trustee, unless appointed under the terms of the governing instrument or unless no other successor trustee, or method for appointing a successor trustee, is provided in the governing instrument.

The powers and the responsibilities of the appointed co-trustee may be limited by the appointing trustee in a writing signed by the appointing trustee at the time of the appointment. If the powers or responsibilities are so limited, the powers or responsibilities of the co-trustee shall be limited as set forth in writing. Unless the powers or responsibilities are so limited, the appointed co-trustee may exercise all the powers of the appointing trustee. The combined powers of the appointed co-trustee and the appointing trustee may not exceed the powers of the appointing trustee alone. The trustee appointing a co-trustee may, in writing, revoke the appointment at any time, with or without cause.

Unless specifically restricted by the governing instrument, if the governing instrument gives a fiduciary other than the trustee the power to remove and replace the trustee, such power includes the power to appoint a co-trustee to serve with the current trustee.

If an appointment under this section confers upon the appointed co-trustee, to the exclusion of another co-trustee, the power to take certain actions, including the power to direct or prevent certain actions of the trustees, the limitations on liability and the relief from duties and obligations afforded an excluded fiduciary under § 55-1B-2 apply to a co-trustee who does not hold such power.

If the governing instrument is silent concerning the trustee's power to appoint a co-trustee, the trustee shall notify in writing, the trustor, if living, and all current income and principal beneficiaries at least thirty days prior to the effective date of the trustee's exercise of the power granted under this section. The notice, which shall include a copy of the proposed action, shall advise the trustor and current beneficiaries that if they object to the trustee's appointment they need to file a written objection with the trustee prior to the effective date set out in the notice of the proposed action. If an objection is received by the trustee, prior to the effective date of the appointment, the trustee may not appoint a co-trustee. However, this section does not limit the power of the trustee under law to petition the court for approval of the appointment. If no objection has been timely made, the proposed appointment becomes effective on the later of the date set out in the notice or thirty days after notice has been given. The notice must be sent by any means allowed under the terms of the trust instrument, by mail with postage prepaid to the last known address of the trustor or current beneficiary, or by means otherwise allowed by law.

A governing instrument may provide for the appointment of two or more trustees and confer or allocate on one or more of the trustees, to the exclusion of other trustees, the power to direct, veto, or overrule specified actions or decisions of other trustees, or with sole responsibility for certain trustee duties. Any excluded trustee shall act in accordance with the exercise of the power, is not liable for complying with the exercise of the power, and has no obligation to review, inquire, investigate, or undertake any recommendations or evaluations with respect to the exercise of the power. A trustee having the power has the sole duty to account to the beneficiaries with respect to the exercise of the power and, if found liable for a breach of the trustee's duties with respect to the exercise of the power, is liable as if that trustee were the sole trustee.

The provisions of this section are effective for trusts created before, on, or after July 1, 2017, except as otherwise directed by the trustor, trust protector, trust advisor, or other fiduciary designated by the terms of the trust.

Source: SL 2017, ch 204, § 12; SL 2019, ch 209, § 4; SL 2021, ch 207, § 8; SL 2023, ch 161, § 6.
S.D. Codified Laws § 55-11-11 — SD Code / Title 55 / Chapter 11 / Section 55-11-11
Prearranged funeral contract pooled funds trust--Creation--Separate accounts--When consent of purchaser required
Status: in_force

A prearranged funeral contract pooled funds trust may be created by a funeral director or a funeral establishment licensed in South Dakota, the South Dakota funeral directors association or a cemetery association organized under chapter 55-12 . However, separate accounts within the pooled funds trust shall be maintained so that a purchaser whose money has been deposited into the pooled funds trust may identify his money. No purchaser's money may be deposited into a pooled funds trust unless the purchaser signs a form consenting to the deposit of his money into a pooled funds trust. The provision regarding consent shall not apply to prearranged funeral trusts where the personal property and professional services are to be provided for a guaranteed amount of money.

Source: SL 1986, ch 408, § 9.
S.D. Codified Laws § 55-5-9 — SD Code / Title 55 / Chapter 5 / Section 55-5-9
Review of assets upon acceptance of trusteeship--Basis for disposition or retention of assets--Interest in closely held entity
Status: in_force

The trustee shall, within a reasonable time after the acceptance of the trusteeship, review trust assets and make and implement decisions concerning the retention and disposition of original pre-existing investments in order to conform to the provisions of this section. The trustee's decision to retain or dispose of an asset may properly be influenced by the asset's special relationship or value to the purposes of the trust or to some or all of the beneficiaries, consistent with the trustee's duty of impartiality.

If a trust owns an interest in a closely held entity, and the trust agreement, or other document signed by the settlor, trust protector, or signed by a majority of the current income or principal beneficiaries, if the settlor is deceased, provides that the trustee has no duty to inquire or review the activities of the closely held entity, no trustee is liable to a beneficiary to the extent that the trustee acted in reliance on the provisions of the trust or court order.

For purposes of this section, the term, closely held entity, means any entity in which the following persons in aggregate own at least twenty percent of the entity:

(1) The settlor;

(2) The settlor's grandparents or their descendants;

(3) The settlor's spouse; or

(4) Any trust created by anyone of the aforementioned persons.

If a trust was in existence on or before July 1, 2012, and a collateral document relieved the trustee of the duty to inquire or review the activities of a closely held entity as provided in this section, then the trustee may elect to have this section apply upon providing sixty days written notice of the election to the settlor or to the current income or principal beneficiaries if the settlor is deceased.

Source: SL 1995, ch 271, § 9; SL 2009, ch 252, § 32; SL 2012, ch 233, § 22; SL 2021, ch 207, § 13.
S.D. Codified Laws § 55-9-4 — SD Code / Title 55 / Chapter 9 / Section 55-9-4
Incomplete or imperfect trust--Purposes impracticable or impossible of performance--Administration to accomplish general purpose--Order of court with consent of donor, if alive and competent
Status: in_force

Whenever it shall appear to the circuit court for the proper county that the purpose and object of such charity is imperfectly expressed, or the method of administration is not indicated or is incomplete or imperfect, or that the fulfillment of the special purpose expressed in a trust for charitable or public purpose is or becomes impracticable, impossible, inexpedient or unlawful, such court shall upon the application of any trustee of the trust, or any interested party or the attorney general of this state, and upon such notice as said court may direct, make an order directing that such trust shall be administered or expended in such manner as in the judgment of said court will, as nearly as can be, accomplish the general purposes of the instrument and the object and intention of the donor without regard to, and free from any, specific restriction, limitation or direction contained therein, provided, however, that no such order shall be made without the consent of the donor of said trust if he is then living and mentally competent.

Source: SL 1955, ch 429, § 3; SDC Supp 1960, § 59.0603.
S.D. Codified Laws § 55-1-1 — SD Code / Title 55 / Chapter 1 / Section 55-1-1
Purposes for which trust may be created
Status: in_force

Except as otherwise prescribed by chapters 43-4 and 43-25 relating to transfers, a trust may be created for any purpose for which a contract may lawfully be made.

Source: CivC 1877, § 1293; CL 1887, § 3916; RCivC 1903, § 1612; RC 1919, § 1190; SDC 1939 § 59.0104; SL 2017, ch 204, § 4.
S.D. Codified Laws § 55-4-41 — SD Code / Title 55 / Chapter 4 / Section 55-4-41
Certain trustees exempted from §§55-4-38to55-4-40, inclusive
Status: in_force

The provisions of §§ 55-4-38 to 55-4-40 , inclusive, do not apply to a decedent's or settlor's spouse who is the trustee of a testamentary trust or an inter vivos trust for which a marital deduction is allowable.

Source: SL 2000, ch 229, § 7.
S.D. Codified Laws § 55-4-38 — SD Code / Title 55 / Chapter 4 / Section 55-4-38
Limitation on trustee's power to make distributions to his or her benefit
Status: in_force

Unless the terms of the trust refer to this section and provide otherwise, a power, including the power to make a distribution to another trust under § 55-2-15 , that is exercisable by or attributable to a person, other than the settlor, in such person's capacity as a trustee to make discretionary distribution of either principal or income:

(1) To or for the benefit of himself or herself is exercisable by the person only for the person's health, education, maintenance, and support in the person's accustomed manner of living; or

(2) To or for the benefit of others, is not exercisable to discharge any of the person's own legal obligations.

Source: SL 2000, ch 229, § 4; SL 2007, ch 281, § 8.
S.D. Codified Laws § 55-13A-506 — SD Code / Title 55 / Chapter 13A / Section 55-13A-506
Adjustments between principal and income because of taxes
Status: in_force

(a) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from:

(1) Elections and decisions, other than those described in subsection (b), that the fiduciary makes from time to time regarding tax matters;

(2) An income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust; or

(3) The ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust, or a beneficiary.

(b) If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust, or beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.

Source: SL 2007, ch 282, § 31.
S.D. Codified Laws § 55-7-2 — SD Code / Title 55 / Chapter 7 / Section 55-7-2
Definition of terms
Status: in_force

Terms used in §§ 55-7-2 to 55-7-15 , inclusive, mean:

(1) "Bank," any person or association of persons, whether incorporated or not, carrying on the business of banking;

(2) "Fiduciary," any trustee under any trust, express, implied, resulting or constructive, personal representative, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of a corporation, public or private, public officer, or any other person acting in a fiduciary capacity for any person, trust or estate;

(3) "Person," any corporation, limited liability company, partnership, or other association, or two or more persons having a joint or common interest; and

(4) "Principal," any person to whom a fiduciary as such owes an obligation.

Source: SL 1943, ch 19, § 1; SDC Supp 1960, § 6.0701 (1); SL 1994, ch 351, § 154.
S.D. Codified Laws § 55-8-2 — SD Code / Title 55 / Chapter 8 / Section 55-8-2
Rights and duties of corporation and transfer agent--Law governing
Status: in_force

The rights and duties of a corporation and its transfer agent in registering a security in the name of a fiduciary or in making a transfer of a security pursuant to an assignment by a fiduciary are governed by the law of the jurisdiction under whose laws the corporation is organized.

Source: SL 1961, ch 22, § 8 (1).
S.D. Codified Laws § 55-16-5 — SD Code / Title 55 / Chapter 16 / Section 55-16-5
Service as investment trust advisor--Service as fiduciary by transferor
Status: in_force

Any person may serve as an investment trust advisor, as defined in subdivision 55-1B-1 (6), notwithstanding that the person is the transferor of the qualified disposition, but a transferor may not otherwise serve as a fiduciary under a trust instrument except as stated in subdivision 55-16-2 (2). While serving as an investment trust advisor of the trust, the person may have all powers authorized by statute or by the trust instrument, including the power to vote by proxy any stock owned by the trust.

Source: SL 2005, ch 261, § 5; SL 2006, ch 243, § 6; SL 2010, ch 232, § 28; SL 2012, ch 233, § 15; SL 2019, ch 209, § 8; SL 2020, ch 206, § 17.
S.D. Codified Laws § 55-1-49 — SD Code / Title 55 / Chapter 1 / Section 55-1-49
Contest regarding settlor's signature
Status: in_force

Notwithstanding anything to the contrary in §§ 55-1-46 to 55-1-51 , inclusive, a no contest clause is enforceable against a beneficiary to the extent the beneficiary elects to contest or otherwise challenge the settlor's signature whereby such a challenge does not in any manner constitute good, probable, or reasonable cause if the settlor's signature was witnessed by nonrelative witnesses or a duly qualified nonrelative notary public or both.

Source: SL 2012, ch 233, § 11.
S.D. Codified Laws § 55-4-57 — SD Code / Title 55 / Chapter 4 / Section 55-4-57
Time for commencing judicial proceeding to contest validity of trust--Distribution of trust property--Recovery of improper distribution--Notice
Status: in_force

(a) A judicial proceeding to contest whether a revocable trust or any amendment thereto, or an irrevocable trust was validly created may not be commenced later than the first to occur of:

(1) One year after the settlor's death;

(2) Sixty days after the trustee, trust advisor, trust protector, or the settlor sent the person who is contesting the trust a copy of the trust instrument and a notice informing the person of the trust's existence, of the trustee's name and address, and of the time allowed for commencing a proceeding;

(3) Upon notice of entry of an order of adjudication of the trust's validity as a result of a petition filed before the settlor's death by any fiduciary of the trust or the settlor of a trust;

(4) Upon notice of entry of an order of any other adjudication of the trust's validity or the date the person's right to contest was precluded by consent or other limitation;

(5) The last date a petition for review of a will could be filed under South Dakota law, if the trust was revocable at the settlor's death and the trust was specifically referred to in the settlor's last will; or

(6) Upon notice of entry of a court's order approving a conservator's proposal to create a trust or amendment thereto if the trust or trust amendment was created pursuant to and in conformity with § 29A-5-419 or 29A-5-420 .

(b) Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless:

(1) The trustee knows of a pending proceeding contesting the validity of the trust; or

(2) A potential contestant has notified the trustee of a possible proceeding to contest the trust and a proceeding is commenced within sixty days after the contestant sent the notification.

(c) A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received for proper distribution. If the beneficiary refuses to return the distribution, the beneficiary may be liable for all costs, including attorney fees, incurred for the recovery of the distribution.

(d) Notice given by the trustee, trust protector, trust advisor or settlor under this section shall be given to all beneficiaries of a trust and all heirs at law of the trust settlor.

(e) With respect to notices to beneficiaries and potential contestants under this section, if personal service is not made, then the notice shall be mailed certified or registered mail, postage prepaid, to the last known address of the person, and absent evidence to the contrary, notice to the person is presumed to have been made on the date of delivery to the last known address of the person, when there is proof of delivery.

(f) No trustee, trust advisor, or trust protector may incur any liability to any person or otherwise for failure to provide any written notice discussed above.

(g) Any trustee, trust advisor, trust protector, or the settlor may petition the court for a judicial order confirming that a trust is valid and enforceable under its current terms, pursuant to the procedures as set forth in chapter 21-22 .

(h) The provisions of chapter 55--18 apply to this section.

Source: SL 2010, ch 232, § 11; SL 2013, ch 239, § 24; SL 2017, ch 204, § 21; SL 2017, ch 208, § 35.
S.D. Codified Laws § 55-1-40 — SD Code / Title 55 / Chapter 1 / Section 55-1-40
Language resulting in classification of distribution interest
Status: in_force

Although not the exclusive means to create a distribution interest, absent clear and convincing evidence to the contrary, the following language by itself results in the following classification of distribution interest:

(1) Mandatory interest:

(a) "All income shall be distributed to (named beneficiary)"; or

(b) "One hundred thousand dollars a year shall be distributed to (named beneficiary)";

(2) Support interest:

(a) "The trustee shall make distributions for health, education, maintenance, and support";

(3) Discretionary interest:

(a) "The trustee, may, in the trustee's sole and absolute discretion make distributions for health, education, maintenance, and support";

(b) "The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support";

(c) "The trustee may make distributions for health, education, maintenance, and support";

(d) "The trustee shall make distributions for health, education, maintenance, and support. The trustees may exclude any of the beneficiaries or may make unequal distributions among them";

(e) "The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare.

Source: SL 2007, ch 280, § 17; SL 2008, ch 257, § 7.
S.D. Codified Laws § 55-3-13 — SD Code / Title 55 / Chapter 3 / Section 55-3-13
Expenses incurred by trustee in performance of trust--Reimbursement
Status: in_force

A trustee, including a former trustee, is entitled to the repayment, out of the trust property, of all expenses actually and properly incurred by the trustee in the performance of the trustee's duties. The trustee is entitled to the repayment of even unlawful expenditures, if the expenditures were productive of actual benefit to the estate. Expenses in performance of the trust include those expenses actually and properly incurred in the exercise of the trustee's powers as described in the governing instrument, in any applicable court order, or in chapter 55-1A . A former trustee is entitled to the repayment, out of trust property, of all expenses actually and properly incurred by the former trustee in the defense of proceedings relating to the performance of the trustee's duties to the same extent as the current trustee is entitled to repayment.

Source: SDC 1939, § 59.0212; SL 2014, ch 226, § 18; SL 2020, ch 206, § 13.
S.D. Codified Laws § 55-7-3 — SD Code / Title 55 / Chapter 7 / Section 55-7-3
A thing done "in good faith" defined
Status: in_force

A thing is done "in good faith" within the meaning of §§ 55-7-2 to 55-7-15 , inclusive, when it is in fact done honestly, whether it be done negligently or not.

Source: SL 1943, ch 19, § 1; SDC Supp 1960, § 6.0701 (2).
S.D. Codified Laws § 55-3-30 — SD Code / Title 55 / Chapter 3 / Section 55-3-30
Provisions not exclusive
Status: in_force

The provisions of §§ 55-3-23 to 55-3-29 , inclusive, shall not be construed as exclusive methods of modifying or terminating irrevocable trusts.

Source: SL 1998, ch 282, § 8.
S.D. Codified Laws § 55-11-5 — SD Code / Title 55 / Chapter 11 / Section 55-11-5
Cancellation of contract creating revocable trust
Status: in_force

The contract creating a revocable trust mentioned in § 55-11-1 may be canceled by either party thereto at any time upon thirty days' written notice of such cancellation.

Source: SL 1953, ch 496, § 1; SDC Supp 1960, § 27.1409; SL 1967, ch 104, § 1; SL 1975, ch 302, § 2.
S.D. Codified Laws § 55-3-1 — SD Code / Title 55 / Chapter 3 / Section 55-3-1
Application of chapter
Status: in_force

The provisions of this chapter apply to all trusts.

Source: SDC 1939, § 59.0201; SL 1993, ch 213, § 254; SL 1993, ch 355, § 1; SL 1998, ch 282, § 11; SL 2010, ch 232, § 2.
S.D. Codified Laws § 55-9-3 — SD Code / Title 55 / Chapter 9 / Section 55-9-3
Action to enforce charitable trust--Liberal construction to carry out intent--Notice of action to attorney general
Status: in_force

Such trust shall be liberally construed by the courts so that the intentions of the donor thereof shall be carried out whenever possible, and no such trust shall fail solely because the donor has imperfectly outlined the purpose and object of such charity or the method of administration.

A grantor may maintain an action to enforce a charitable trust under this section and may designate in writing a person or persons, whether or not born at the time of such designation, to enforce a charitable trust under this section. In any such action, the attorney general shall be provided notice as provided in § 21-22-18 .

Source: SL 1955, ch 429, § 3; SDC Supp 1960, § 59.0603; SL 2012, ch 233, § 23.
S.D. Codified Laws § 55-4-55 — SD Code / Title 55 / Chapter 4 / Section 55-4-55
Liability for bad faith demand for trust instrument
Status: in_force

Any person making a demand for the trust instrument in addition to a certificate of trust or excerpts is liable for damages if the court determines that the person did not act in good faith in demanding the trust instrument.

Source: SL 2009, ch 252, § 28.
S.D. Codified Laws § 55-12-22 — SD Code / Title 55 / Chapter 12 / Section 55-12-22
Injunction to restrain use of money in earnings fund
Status: in_force

If the attorney general has reason to believe that any person is using the money in the earnings fund for purposes not related to the care and maintenance of the perpetual care cemetery, the attorney general may bring an action in the name of the state against the person to restrain by temporary or permanent injunction the use of the money in the earnings fund. The notice of the action shall state generally the relief sought and be served at least three days before any hearing in the action.

Source: SL 2019, ch 210, § 5.
S.D. Codified Laws § 55-3-6 — SD Code / Title 55 / Chapter 3 / Section 55-3-6
Trust irrevocable in absence of express contrary provisions
Status: in_force

Unless the terms of a trust expressly reserve a power to the settlor to revoke or modify a trust, a trust shall be irrevocable.

Source: SDC 1939, § 59.0216; SL 1993, ch 355, § 2; SL 1998, ch 282, § 9; SL 2019, ch 209, § 5.
S.D. Codified Laws § 55-11-12.1 — SD Code / Title 55 / Chapter 11 / Section 55-11-12.1
Disbursement of funds in irrevocable prearranged funeral trust
Status: in_force

Every trustee of an irrevocable prearranged funeral trust which does not provide for a guaranteed price shall pay from the trust funds and any accrued interest the actual charges incurred for furnishing funeral services and merchandise to the funeral director, funeral establishment, or embalmer, licensed under chapter 36-19 , or similarly licensed in any other state that provides funeral services and merchandise for the beneficiary of the irrevocable prearranged funeral trust. The balance of the funds remaining in the prearranged funeral trust, if any, shall be paid by the trustee to the purchaser or to the estate or next of kin of the purchaser, subject to § 28-6-23 and rules pertaining thereto and the terms of the prearranged funeral trust agreement. Payment of all of the trust funds, plus any accrued interest, as provided in this section, within thirty days after receipt of a death certificate, relieves the trustee of any further duties or obligations.

Source: SL 1997, ch 278, § 2.
S.D. Codified Laws § 55-4-13 — SD Code / Title 55 / Chapter 4 / Section 55-4-13
Trustee not to buy from or sell to self--Exception
Status: in_force

No trustee, unless expressly authorized by the trust instrument, shall directly or indirectly lease, buy or sell any property for the trust from or to itself or an affiliate; or from or to a director, officer, or employee of such trustee or of an affiliate; or from or to a relative, employer, partner, or other business associate. Notwithstanding this provision or any statute to the contrary, a trustee may lease, purchase or sell property from or to the trust he represents as trustee if specifically authorized to do so in a decedent's will or the instrument creating the trustee relationship, including the establishment of a trust service office as provided by chapter 51A-5 .

Source: SL 1943, ch 308, § 5; SDC Supp 1960, § 59.0505; SL 1980, ch 343; SL 1981, ch 354, § 2; SL 1984, ch 314, § 7.
S.D. Codified Laws § 55-2-17 — SD Code / Title 55 / Chapter 2 / Section 55-2-17
Conditions under which beneficiary has power to change trustees
Status: in_force

For the purposes of § 55-2-15 , a beneficiary shall be considered to have the power to "change the trustees" if he or she can, alone or with others, name himself or herself as a trustee or can remove a trustee and replace that trustee with a new trustee who is the beneficiary or who is related or subordinate (as defined in § 672 of the I.R.C.) to the beneficiary.

Source: SL 2007, ch 281, § 3; SL 2009, ch 252, § 18.
S.D. Codified Laws § 55-13-16 — SD Code / Title 55 / Chapter 13 / Section 55-13-16
Short title
Status: in_force

This chapter may be cited as the Revised Uniform Principal and Income Act.

Source: SL 1984, ch 323, § 16.
S.D. Codified Laws § 55-12-21 — SD Code / Title 55 / Chapter 12 / Section 55-12-21
Court action to enforce compliance
Status: in_force

If any person refuses to obey an investigative demand or subpoena, the attorney general may petition the circuit court to enforce compliance under § 37-24-17 .

Source: SL 2019, ch 210, § 4.
S.D. Codified Laws § 55-11-15 — SD Code / Title 55 / Chapter 11 / Section 55-11-15
Certain persons operating cemeteries exempted from provisions regarding sale of merchandise and services--Maintenance of funds
Status: in_force

Any person, corporation, partnership, association or other entity engaged in the business of owning, maintaining or operating a cemetery in the state of South Dakota prior to July 1, 1986, shall be exempt from the provisions of this chapter for purposes of the sale through the cemetery of merchandise and services incidental to a burial service. Except that such person, corporation, partnership, association or other entity engaged in the cemetery business shall maintain at least seventy percent of all money paid under a prearranged burial contract in the manner set forth in §§ 55-11-1 , 55-11-2 and 55-11-5.1 .

Source: SL 1986, ch 408, § 15A.
S.D. Codified Laws § 55-11-12 — SD Code / Title 55 / Chapter 11 / Section 55-11-12
Death or relocation of beneficiary of irrevocable prearranged funeral trust--Seller's option to provide comparable services or return deposits and interest--Disposition of funds
Status: in_force

If the beneficiary of an irrevocable prearranged funeral trust for a guaranteed price dies outside the general area or moves outside the general area served by the provider designated in a prearranged funeral trust contract, the seller shall either provide for the furnishing of comparable funeral services and merchandise by a licensed mortuary or cemetery selected by the next of kin of the purchaser or, at the seller's option, shall pay over to the purchaser, or upon the death of the purchaser to the next of kin of the purchaser in fulfillment of all obligations under the contract, an amount equal to all deposits made into trust under the prearranged funeral trust contract together with the accrued trust interest to be provided for in the contract. Upon seller's full performance under the provisions of this section, the trustee shall distribute to the seller from the trust an amount equal to all deposits made into the trust together with the accrued trust interest.

Source: SL 1986, ch 408, § 10; SL 1997, ch 278, § 1.
S.D. Codified Laws § 55-1-21.2 — SD Code / Title 55 / Chapter 1 / Section 55-1-21.2
Judicial reduction of property transferred to trustee if trust corpus exceeds amount required for intended purposes
Status: in_force

A court may reasonably reduce the amount of the property transferred to the trustee of a purpose trust if the court determines that the trust corpus substantially exceeds the amount required for the intended purposes. The court should consider allowing the trust to be administered for a reasonable period of time before undertaking a determination. The amount of the reduction, if any, passes as unexpended trust property, as set forth in § 55-1-21.8 .

Source: SL 2018, ch 275, § 5.
S.D. Codified Laws § 55-1B-3 — SD Code / Title 55 / Chapter 1B / Section 55-1B-3
Death of grantor
Status: in_force

An excluded fiduciary may continue to follow the direction of the trust advisor upon the incapacity or death of the grantor if the instrument so allows.

Source: SL 1997, ch 280, § 3.
S.D. Codified Laws § 55-3-14 — SD Code / Title 55 / Chapter 3 / Section 55-3-14
Compensation of trustee
Status: in_force

When a declaration of trust does not specify the rate or amount of the trustee's compensation the trustee is entitled to and shall receive reasonable compensation for the performance of his duties. If such declaration specifies the amount or rate of his compensation, he is entitled to the amount or rate thus specified and no more.

Source: SDC 1939, § 59.0213; SL 1967, ch 337.
S.D. Codified Laws § 55-1-36.1 — SD Code / Title 55 / Chapter 1 / Section 55-1-36.1
Effect on creditor claims of trustee discretionary powers to pay taxes or make reimbursements for taxes
Status: in_force

Regardless of whether a disposition is a qualified disposition pursuant to chapter 55-16 , where a trustee is granted a discretionary power by the terms of the trust instrument, or any provision of law, to pay directly to any taxing authority, or to reimburse the person liable for, any tax imposed by a taxing authority on the person by reason of the person being treated as the owner of all or any portion of the trust property pursuant to §§ 671 to 678, inclusive, of the Internal Revenue Code of 1986, 26 U.S.C. §§ 671 to 678, inclusive, as of January 1, 2016, and the U.S. Treasury Regulations promulgated thereunder, as of January 1, 2016:

(1) A creditor of the person shall not satisfy a claim from the property of the trust solely because of the existence or exercise of the discretionary power; and

(2) The use of trust property to pay the tax shall not be deemed a distribution or transfer of trust property to the person for any purpose, and the amount paid from the trust to the taxing authority or to the person in reimbursement of the person's payment of the tax is not subject to the claims of a creditor of the person solely because of the existence or exercise of the discretionary power.

Source: SL 2015, ch 240, § 13; SL 2016, ch 231, § 13.
S.D. Codified Laws § 55-1A-35 — SD Code / Title 55 / Chapter 1A / Section 55-1A-35
Execution and delivery of instruments
Status: in_force

A trustee may execute and deliver all instruments which will accomplish or facilitate the exercise of the powers vested in himself.

Source: SL 1979, ch 336, § 35.
S.D. Codified Laws § 55-13-5 — SD Code / Title 55 / Chapter 13 / Section 55-13-5
Income earned during administration of a decedent's estate
Status: in_force

(a) Unless the will otherwise provides and subject to subsection (b), all expenses incurred in connection with the settlement of a decedent's estate, including debts, funeral expenses, estate taxes, interest and penalties concerning taxes, family allowances, fees of attorneys and personal representatives, and court costs shall be charged against the principal of the estate.

(b) Unless the will otherwise provides, income from the assets of a decedent's estate after the death of the testator and before distribution, including income from property used to discharge liabilities, shall be determined in accordance with the rules applicable to a trustee under this chapter and distributed as follows:

(1) to specific legatees and devisees, the income from the property bequeathed or devised to them respectively, less taxes, ordinary repairs, and other expenses of management and operation of the property, and an appropriate portion of interest accrued since the death of the testator and of taxes imposed on income (excluding taxes on capital gains) which accrue during the period of administration;

(2) to all other legatees and devisees, except legatees of pecuniary bequests not in trust, the balance of the income, less the balance of taxes, ordinary repairs, and other expenses of management and operation of all property from which the estate is entitled to income, interest accrued since the death of the testator, and taxes imposed on income (excluding taxes on capital gains) which accrue during the period of administration, in proportion to their respective interests in the undistributed assets of the estate computed at times of distribution on the basis of inventory value.

(c) Income received by a trustee under subsection (b) shall be treated as income of the trust.

Source: SL 1984, ch 323, § 5.
S.D. Codified Laws § 55-19-7 — SD Code / Title 55 / Chapter 19 / Section 55-19-7
Disclosure of content of electronic communications of deceased user
Status: in_force

If a deceased user consented to or a court directs disclosure of contents of electronic communications of the user, the custodian shall disclose to the personal representative of the estate of the user the content of an electronic communication sent or received by the user if the representative gives the custodian:

(1) A written request for disclosure in physical or electronic form;

(2) A certified copy of the death certificate of the user;

(3) A certified copy of the letter of appointment of the representative or a small estate affidavit or court order;

(4) A copy of the user's will, trust, power of attorney, or other record that provides evidence of the user's consent to disclosure of the content of electronic communications, unless the user provided direction by utilizing an online tool; and

(5) If requested by the custodian:

(a) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the user's account;

(b) Evidence linking the account to the user; or

(c) A finding by the court that:

(i) The user had a specific account with the custodian, identifiable by the information specified in this subdivision;

(ii) Disclosure of the content of electronic communications of the user would not violate 18 U.S.C. Section 2701 et seq., 47 U.S.C. Section 222, or other applicable law;

(iii) Unless the user provided direction using an online tool, the user consented to disclosure of the content of electronic communications; or

(iv) Disclosure of the content of electronic communications of the user is reasonably necessary for administration of the estate.

Source: SL 2017, ch 209, § 7.
S.D. Codified Laws § 55-8-14 — SD Code / Title 55 / Chapter 8 / Section 55-8-14
Liability of guarantor of signature of fiduciary
Status: in_force

If a corporation or transfer agent makes a transfer pursuant to an assignment by a fiduciary, a person who guaranteed the signature of the fiduciary is not liable on the guarantee to any person to whom the corporation or transfer agent by reason of this chapter incurs no liability.

Source: SL 1961, ch 22, § 7 (2).
S.D. Codified Laws § 55-19-18 — SD Code / Title 55 / Chapter 19 / Section 55-19-18
Fiduciary right of access to digital asset not held by custodian or subject to terms-of-service agreement
Status: in_force

A fiduciary with authority over the property of a decedent, protected person, principal, or settlor has the right to access any digital asset in which the decedent, protected person, principal, or settlor had a right or interest and that is not held by a custodian or subject to a terms-of-service agreement.

Source: SL 2017, ch 209, § 18.
S.D. Codified Laws § 55-1-11 — SD Code / Title 55 / Chapter 1 / Section 55-1-11
Implied trust--Declaration by court of equity
Status: in_force

The enumeration in §§ 55-1-7 to 55-1-10 , inclusive, of cases wherein an implied trust arises does not exclude or prevent the arising of an implied trust in other cases nor prevent a court of equity from establishing and declaring an implied, resulting, or constructive trust in other cases and instances pursuant to the custom and practice of such courts.

Source: SDC 1939, § 59.0102.
S.D. Codified Laws § 55-1-21.7 — SD Code / Title 55 / Chapter 1 / Section 55-1-21.7
Judicial designation of trustee--Order to carry out intent of trustor and purpose of trust
Status: in_force

If no trustee is designated or no designated trustee is willing or able to serve, a court shall name a trustee. A court may order the transfer of the property to another trustee if required to ensure that the intended purposes are carried out or if no successor trustee is designated in the governing instrument or no designated successor trustee agrees to serve or is able to serve. A court may also make such other orders and determinations as are advisable to carry out the intent of the trustor and the purpose of §§ 55-1-20 to 55-1-22.6 , inclusive.

Source: SL 2018, ch 275, § 10.
S.D. Codified Laws § 55-15-14 — SD Code / Title 55 / Chapter 15 / Section 55-15-14
No duty to act created
Status: in_force

Nothing in this chapter is intended to create or imply a duty to take any action under this chapter, and no trustee is liable for not considering whether to take any action or for choosing not to take any such action.

Source: SL 2002, ch 225, § 14.
S.D. Codified Laws § 55-1A-11 — SD Code / Title 55 / Chapter 1A / Section 55-1A-11
Disposal of trust assets
Status: in_force

A trustee may acquire, sell, or otherwise dispose of an asset, at public or private sale, for cash or on credit, with or without security as he deems advisable, and he may manage, develop, exchange, partition, change the character of, or abandon a trust asset or any interest therein.

Source: SL 1979, ch 336, § 11.
S.D. Codified Laws § 55-1B-5 — SD Code / Title 55 / Chapter 1B / Section 55-1B-5
Excluded fiduciary's liability for loss if trust protector appointed
Status: in_force

If an instrument appoints a trust protector, the excluded fiduciary is not liable for any loss resulting from any action taken upon such trust protector's direction.

Source: SL 1997, ch 280, § 5.
S.D. Codified Laws § 55-14A-9 — SD Code / Title 55 / Chapter 14A / Section 55-14A-9
Relation to Electronic Signatures in Global and National Commerce Act
Status: in_force

This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. Section 7001 et seq., but does not modify, limit, or supersede Section 101 of that act, 15 U. S.C. Section 7001(a), or authorize electronic delivery of any of the notices described in Section 103 of that act, 15 U.S.C. Section 7003(b).

Source: SL 2007, ch 283, § 9.
S.D. Codified Laws § 55-1-21.10 — SD Code / Title 55 / Chapter 1 / Section 55-1-21.10
Trustee may not use principal and income other than for trust's purposes
Status: in_force

Except as expressly provided otherwise in the trust instrument, no portion of the principal or income may be converted to the use of the trustee or to any use other than for the trust's purposes or the benefit of a covered animal.

Source: SL 2018, ch 275, § 13.
S.D. Codified Laws § 55-7-4 — SD Code / Title 55 / Chapter 7 / Section 55-7-4
Payment or transfer to fiduciary--Nonliability of transferor for improper application
Status: in_force

A person who in good faith pays or transfers to a fiduciary any money or other property which the fiduciary as such is authorized to receive, is not responsible for the proper application thereof by the fiduciary; and any right or title acquired from the fiduciary in consideration of such payment or transfer is not invalid in consequence of a misapplication by the fiduciary.

Source: SL 1943, ch 19, § 2; SDC Supp 1960, § 6.0702.
S.D. Codified Laws § 55-1-54 — SD Code / Title 55 / Chapter 1 / Section 55-1-54
Arbitration
Status: in_force

In addition to the trustee's power to submit to an arbitration claim in favor of or against a trust or trustee as set forth in § 55-1A-25 , a provision in a trust requiring the arbitration of a dispute between or among the beneficiaries, a fiduciary under the will or trust, or any combination of them, is enforceable pursuant to the provisions of chapter 21-25A . Unless otherwise provided in the governing instrument or a court order, the arbitration shall be held in this state. Notwithstanding the foregoing, a challenge to the validity of all or part of the trust is not subject to arbitration. Any proceeding pursuant to this section is subject, upon request by the acting trustee, the trustor, if living, or any beneficiary, to the privacy protections of § 21-22-28 . The arbitrator shall grant the request, if made.

Source: SL 2015, ch 240, § 15.
S.D. Codified Laws § 55-1A-9 — SD Code / Title 55 / Chapter 1A / Section 55-1A-9
Investment of trust assets
Status: in_force

A trustee may invest and reinvest trust assets in any property or in an undivided interest in any property, wherever located, including bonds, debentures, secured or unsecured notes, preferred or common stock of corporations, real estate or improvements thereon or any interest therein, oil and mineral leases or royalty or similar interests, and interests in trusts including investment trusts and common trust funds maintained by a corporate trustee and any affiliated investments as defined in § 55-1A-9.1 . Any such investments may be made, regardless of any lack of diversification.

Source: SL 1979, ch 336, § 9; SL 1993, ch 354; SL 2007, ch 247, § 6.
S.D. Codified Laws § 55-11-13 — SD Code / Title 55 / Chapter 11 / Section 55-11-13
Prearranged funeral contract not burial insurance
Status: in_force

A prearranged funeral contract sold in compliance with chapter 55-11 is not burial insurance under § 58-9-4 .

Source: SL 1986, ch 408, § 14.
S.D. Codified Laws § 55-1A-37 — SD Code / Title 55 / Chapter 1A / Section 55-1A-37
Citation of chapter
Status: in_force

This chapter may be cited or referred to as the "South Dakota Trustees' Powers Act."

Source: SL 1979, ch 336, § 37.
S.D. Codified Laws § 55-1-22 — SD Code / Title 55 / Chapter 1 / Section 55-1-22
Hybrid purpose trusts valid
Status: in_force

A hybrid purpose trust which meets the description of a purpose trust in §§ 55-1-20 to 55-1-21.10 , inclusive, also includes one or more beneficiaries is valid and may be performed.

Source: SL 2006, ch 247, § 3; SL 2018, ch 275, § 14.
S.D. Codified Laws § 55-1-21 — SD Code / Title 55 / Chapter 1 / Section 55-1-21
Trust for care of animal, care of other property, or other lawful noncharitable purpose
Status: in_force

The following purpose trusts are valid:

(1) A trust for the care of a designated animal or animals;

(2) A trust for the care, maintenance, promotion, continuation, conservation, upkeep, protection, furtherance, or preservation of any other property; and

(3) A trust for any other lawful noncharitable purpose or purposes.

Source: SL 2006, ch 247, § 2; SL 2018, ch 275, § 3.
S.D. Codified Laws § 55-15-2 — SD Code / Title 55 / Chapter 15 / Section 55-15-2
Trustee's authority to convert income trust, total return unitrust--Calculate trust amount, value--Conditions
Status: in_force

A trustee, other than an interested trustee, or, if two or more persons are acting as trustee, a majority of the trustees who are not an interested trustee (in either case hereafter "trustee"), may, in its sole discretion and without the approval of any court, (i) convert an income trust to a total return unitrust, (ii) reconvert a total return unitrust to an income trust, or (iii) change the percentage used to calculate the unitrust amount and the method used to determine the fair market value of the trust if:

(1) The trustee adopts a written policy for the trust providing (i) in the case of a trust being administered as an income trust, that future distributions from the trust will be unitrust amounts rather than net income, (ii) in the case of a trust being administered as a total return unitrust, that future distributions from the trust will be net income rather than unitrust amounts, or (iii) that the percentage used to calculate the unitrust amount or the method used to determine the fair market value of the trust will be changed as stated in the policy;

(2) The trustee sends written notice of its intention to take such action, along with copies of such written policy and this chapter, to (i) the trustor, if living, (ii) all living persons who are currently receiving or eligible to receive distributions of income of the trust, (iii) all living persons who would receive principal of the trust if the trust were to terminate at the time of the giving of such notice (without regard to the exercise of any power of appointment) or, if the trust does not provide for its termination, all living persons who would receive or be eligible to receive distributions of income or principal of the trust if the persons identified in subclause (ii) of this subdivision were deceased, and (iv) all persons acting as adviser or protector of the trust;

(3) At least one person receiving notice under each of subclauses (ii) and (iii) of subdivision (2) is, to the best information and belief of the trustee, legally competent; and

(4) No person receiving such notice objects, by written instrument delivered to the trustee, to the proposed action of the trustee within sixty days of receipt of such notice.

Source: SL 2002, ch 225, § 2.
S.D. Codified Laws § 55-1A-30 — SD Code / Title 55 / Chapter 1A / Section 55-1A-30
Distribution of property and money
Status: in_force

A trustee may effect distribution of property and money in divided or undivided interests, and adjust the resulting differences in valuation.

Source: SL 1979, ch 336, § 30.
S.D. Codified Laws § 55-18-17 — SD Code / Title 55 / Chapter 18 / Section 55-18-17
Discretion of representative--Fiduciary status
Status: in_force

A representative may make a decision with broad discretion and no representative is liable for an action or omission unless the representative:

(1) Acts dishonestly;

(2) Acts with an improper motive; or

(3) Fails, if under a duty to do so, to act.

A representative may represent any number of persons. A representative is not a fiduciary solely by reason of being a representative unless otherwise ordered by the court, expressly affirmed in writing by the representative, or provided in the governing instrument.

The provisions of this section do not expand or diminish the duties of an attorney.

Source: SL 2017, ch 208, § 17.
S.D. Codified Laws § 55-10A-22 — SD Code / Title 55 / Chapter 10A / Section 55-10A-22
Termination of custodianship
Status: in_force

The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate upon the earlier of:

(1) The minor's attainment of eighteen years of age with respect to custodial property transferred under § 55-10A-4 , 55-10A-5 , 55-10A-6 or 55-10A-7 ; or

(2) The minor's death.

Source: SL 1986, ch 409, § 22.
S.D. Codified Laws § 55-1-56 — SD Code / Title 55 / Chapter 1 / Section 55-1-56
Registration of trust in court at principal place of administration
Status: in_force

The trustee of a trust that has its principal place of administration in this state may register the trust in the court of this state at the principal place of administration. Unless otherwise designated in the trust instrument, the principal place of administration of a trust is the trustee's place of business where the records pertaining to the trust are kept, or at the trustee's residence if the trustee has no such place of business. In the case of co-trustees, the principal place of administration, if not otherwise designated in the trust instrument, is:

(1) The place of business of the corporate trustee if there is only one corporate co-trustee;

(2) The place of business or residence of the individual trustee who is a professional fiduciary if there is only one such person and no corporate co-trustee; or

(3) The place of business or residence of any of the co-trustees as agreed upon by the co-trustees.

Source: SL 2017, ch 204, § 8.
S.D. Codified Laws § 55-1-48 — SD Code / Title 55 / Chapter 1 / Section 55-1-48
Circumstances under which no contest clause unenforceable
Status: in_force

A no contest clause is not enforceable against a beneficiary to the extent the beneficiary, in good faith and based upon probable cause, contests a provision that benefits any of the following persons:

(1) A person who drafted or transcribed the instrument;

(2) A person who gave directions to the drafter of the instrument concerning dispositive or other substantive contents of the provisions or who directed the drafter to include the no contest clause in the instrument. However, this subdivision does not apply if the settlor affirmatively instructed the drafter to include the contents of the provision or the no contest clause; or

(3) A person who acted as a witness to the instrument.

Source: SL 2012, ch 233, § 10.
S.D. Codified Laws § 55-13A-105 — SD Code / Title 55 / Chapter 13A / Section 55-13A-105
Judicial control of discretionary power
Status: in_force

(a) The court may not order a fiduciary to change a decision to exercise or not to exercise a discretionary power conferred by this chapter unless it determines that the decision was an abuse of the fiduciary's discretion. A fiduciary's decision is not an abuse of discretion merely because the court would have exercised the power in a different manner or would not have exercised the power.

(b) The decisions to which subsection (a) applies include:

(1) A decision under § 55-13A-104(a) as to whether and to what extent an amount should be transferred from principal to income or from income to principal;

(2) A decision regarding the factors that are relevant to the trust and its beneficiaries, the extent to which the factors are relevant, and the weight, if any, to be given to those factors, in deciding whether and to what extent to exercise the discretionary power conferred by § 55-13A-104(a).

(c) If the court determines that a fiduciary has abused the fiduciary's discretion, the court may place the income and remainder beneficiaries in the positions they would have occupied if the discretion had not been abused, according to the following rules:

(1) To the extent that the abuse of discretion has resulted in no distribution to a beneficiary or in a distribution that is too small, the court shall order the fiduciary to distribute from the trust to the beneficiary an amount that the court determines will restore the beneficiary, in whole or in part, to the beneficiary's appropriate position;

(2) To the extent that the abuse of discretion has resulted in a distribution to a beneficiary which is too large, the court shall place the beneficiaries, the trust, or both, in whole or in part, in their appropriate positions by ordering the fiduciary to withhold an amount from one or more future distributions to the beneficiary who received the distribution that was too large or ordering that beneficiary to return some or all of the distribution to the trust;

(3) To the extent that the court is unable, after applying paragraphs (1) and (2), to place the beneficiaries, the trust, or both, in the positions they would have occupied if the discretion had not been abused, the court may order the fiduciary to pay an appropriate amount from its own funds to one or more of the beneficiaries or the trust or both.

(d) Upon petition by the fiduciary, the court having jurisdiction over a trust or estate shall determine whether a proposed exercise or nonexercise by the fiduciary of a discretionary power conferred by this chapter will result in an abuse of the fiduciary's discretion. If the petition describes the proposed exercise or nonexercise of the power and contains sufficient information to inform the beneficiaries of the reasons for the proposal, the facts upon which the fiduciary relies, and an explanation of how the income and remainder beneficiaries will be affected by the proposed exercise or nonexercise of the power, a beneficiary who challenges the proposed exercise or nonexercise has the burden of establishing that it will result in an abuse of discretion.

Source: SL 2007, ch 282, § 5.
S.D. Codified Laws § 55-3-2 — SD Code / Title 55 / Chapter 3 / Section 55-3-2
Creation of trust--Mutual consent of trustor and trustee
Status: in_force

The mutual consent of a trustor and trustee creates a trust of which the beneficiary may take advantage at any time prior to its rescission.

Source: SDC 1939, § 59.0202.
S.D. Codified Laws § 55-13-3 — SD Code / Title 55 / Chapter 13 / Section 55-13-3
Income--Principal--Charges
Status: in_force

(a) Income is the return in money or property derived from the use of principal, including return received as

(1) rent of real or personal property, including sums received for cancellation or renewal of a lease;

(2) interest on money lent, including sums received as consideration for the privilege of prepayment of principal except as provided in § 55-13-7 on bond premium and bond discount;

(3) income earned during administration of a decedent's estate as provided in § 55-13-5 ;

(4) corporate distributions as provided in § 55-13-6 ;

(5) accrued increment on bonds or other obligations issued at discount as provided in § 55-13-7 ;

(6) receipts from business and farming operations as provided in § 55-13-8 ;

(7) receipts from disposition of natural resources as provided in §§ 55-13-9 and 55-13-10 ;

(8) receipts from other principal subject to depletion as provided in § 55-13-11 ;

(9) receipts from disposition of any underproductive property.

(b) Principal is the property which has been set aside by the owner or the person legally empowered so that it is held in trust eventually to be delivered to a remainderman while the return or use of the principal is in the meantime taken or received by or held for accumulation for an income beneficiary. Principal includes

(1) consideration received by the trustee on the sale or other transfer of principal or on repayment of a loan or as a refund or replacement or change in the form of principal;

(2) proceeds of property taken on eminent domain proceedings;

(3) proceeds of insurance upon property forming part of the principal except proceeds of insurance upon a separate interest of an income beneficiary;

(4) stock dividends, receipts on liquidation of a corporation, and other corporate distributions as provided in § 55-13-6 ;

(5) receipts from the disposition of corporate securities as provided in § 55-13-7 ;

(6) royalties and other receipts from disposition of natural resources as provided in §§ 55-13-9 and 55-13-10 ;

(7) receipts from other principal subject to depletion as provided in § 55-13-11 ;

(8) any profit resulting from any change in the form of principal on underproductive property;

(9) receipts from disposition of any underproductive property;

(10) any allowances for depreciation established under §§ 55-13-8 and 55-13-13 (a)(2).

(c) After determining income and principal in accordance with the terms of the trust instrument or of this chapter, the trustee shall charge to income or principal expenses and other charges as provided in § 55-13-13 .

Source: SL 1984, ch 323, § 3; SL 2021, ch 204, § 7.
S.D. Codified Laws § 55-19-9 — SD Code / Title 55 / Chapter 19 / Section 55-19-9
Disclosure of content of electronic communications of principal
Status: in_force

To the extent a power of attorney expressly grants an agent authority over the content of electronic communications sent or received by the principal and unless directed otherwise by the principal or the court, a custodian shall disclose to the agent the content if the agent gives the custodian:

(1) A written request for disclosure in physical or electronic form;

(2) An original or copy of the power of attorney expressly granting the agent authority over the content of electronic communications of the principal;

(3) A certification by the agent, under penalty of perjury, that the power of attorney is in effect; and

(4) If requested by the custodian:

(a) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the principal's account; or

(b) Evidence linking the account to the principal.

Source: SL 2017, ch 209, § 9.
S.D. Codified Laws § 55-3-16 — SD Code / Title 55 / Chapter 3 / Section 55-3-16
Vacation of office of trustee
Status: in_force

The office of a trustee is vacated:

(1) By its death;

(2) By its discharge; or

(3) By its resignation.

Source: SDC 1939, § 59.0217; SL 2019, ch 209, § 1.
S.D. Codified Laws § 55-1-30 — SD Code / Title 55 / Chapter 1 / Section 55-1-30
Distribution and remainder interests not relevant to division of marital property
Status: in_force

Neither a distribution interest nor a remainder interest are relevant in the equitable division of marital property.

Source: SL 2007, ch 280, § 7; SL 2008, ch 257, § 4.
S.D. Codified Laws § 55-1A-6 — SD Code / Title 55 / Chapter 1A / Section 55-1A-6
Additions to trust assets
Status: in_force

A trustee may receive additions to the assets of his trust from any source.

Source: SL 1979, ch 336, § 6.
S.D. Codified Laws § 55-17-3 — SD Code / Title 55 / Chapter 17 / Section 55-17-3
Classification of property--Interest of each spouse
Status: in_force

Spouses may classify all or any of their property as special spousal property by transferring property to a South Dakota special spousal trust established pursuant to this chapter, and by expressly declaring in the trust that the property is community property. Unless there is a specific provision in the governing instrument stating otherwise, each spouse's respective interest in the special spousal property is fifty percent.

Source: SL 2016, ch 231, § 31; SL 2018, ch 275, § 29.
S.D. Codified Laws § 55-17-1 — SD Code / Title 55 / Chapter 17 / Section 55-17-1
Arrangement qualifying as special spousal trust
Status: in_force

An arrangement is a South Dakota special spousal trust if one or both spouses in a marriage transfer property to a trust, the trust expressly declares that some or all the property transferred is South Dakota special spousal property as provided in this chapter, and at least one trustee is a qualified person. A South Dakota special spousal trust is enforceable without consideration. Both spouses or either spouse may be a trustee. The trust must be signed by both spouses. The trust may be revocable or irrevocable.

For purposes of this section, a qualified person is any person who meets the requirements of §§ 55-3-41 and 55-3-39 , but without regard to whether that person is the transferor.

Source: SL 2016, ch 231, § 29.
S.D. Codified Laws § 55-1-8 — SD Code / Title 55 / Chapter 1 / Section 55-1-8
Implied trust resulting from fraud, accident or wrongful act
Status: in_force

One who gains a thing by fraud, accident, mistake, undue influence, the violation of a trust or other wrongful act, is, unless he has some other and better right thereto, an implied trustee of the thing gained for the benefit of the person who would otherwise have had it.

Source: SDC 1939, § 59.0102 (2).
S.D. Codified Laws § 55-3-21 — SD Code / Title 55 / Chapter 3 / Section 55-3-21
Appointment of trustee by circuit court--Grounds
Status: in_force

If a trust exists without any appointed trustees, or where all the trustees renounce, die, or are discharged, the circuit court for the county where the trust property or some portion thereof is situated must appoint another trustee and direct the execution of the trust. The court may in its discretion appoint the original number or any less number of trustees.

Source: SDC 1939, § 59.0220.
S.D. Codified Laws § 55-12-13 — SD Code / Title 55 / Chapter 12 / Section 55-12-13
Commission, bonus, rebate or other thing of value in connection with sale of interment space in perpetual care cemetery prohibited--Exceptions
Status: in_force

No organization subject to the provisions of this chapter may pay or offer to pay to, or for any person, firm or corporation to receive, directly or indirectly, a commission or bonus or rebate or other thing of value, for or in connection with the sale of any interment space, lot or part thereof, in any cemetery described in § 55-12-1 . The provisions of this section do not apply to a person regularly employed and supervised by such organization or to any agent of such organization who is directly supervised by such organization.

Source: SL 1955, ch 97, § 7; SDC Supp 1960, § 11.19A07; SL 1997, ch 279, § 1.
S.D. Codified Laws § 55-1-27 — SD Code / Title 55 / Chapter 1 / Section 55-1-27
Certain remainder interests not property interests
Status: in_force

Although a remainder interest may be an enforceable right, where it is not absolutely certain based on the language of the trust that the remainder interest will be distributed within one year, it may not be classified as a property interest. This section does not affect eligibility for any public assistance program administered by the Department of Social Services pursuant to § 28-1-1 .

Source: SL 2007, ch 280, § 4.
S.D. Codified Laws § 55-6-7 — SD Code / Title 55 / Chapter 6 / Section 55-6-7
Citation of chapter
Status: in_force

This chapter may be cited as the Uniform Common Trust Fund Act.

Source: SL 1941, ch 20, § 4; SDC Supp 1960, § 6.0906.
S.D. Codified Laws § 55-1-21.9 — SD Code / Title 55 / Chapter 1 / Section 55-1-21.9
Filings, reports, accounting, separation of funds, appointment, and registration of purpose trust not required--Exceptions
Status: in_force

Except as may be demanded by an enforcer under § 55-1-21.4 , ordered by the court or required by the governing instrument, no filings, reports, periodic accounting, separate maintenance of funds, appointment, or registration of a purpose trust are required.

Source: SL 2018, ch 275, § 12; SL 2020, ch 206, § 3.
S.D. Codified Laws § 55-15-3 — SD Code / Title 55 / Chapter 15 / Section 55-15-3
Interested trustee's authority over actions enumerated in §55-15-2--Conditions
Status: in_force

If there is no trustee of the trust other than an interested trustee, the interested trustee or, if two or more persons are acting as trustee and are interested trustees, a majority of such interested trustees, may, in its sole discretion and without the approval of any court, take such action as provided in § 55-15-2 so long as the trustee appoints a disinterested person who, in its sole discretion but acting in a fiduciary capacity, determines for the trustee (i) the percentage to be used to calculate the unitrust amount, (ii) the method to be used in determining the fair market value of the trust, and (iii) which assets, if any, are to be excluded in determining the unitrust amount; and complies with all of the provisions of subdivisions (1) to (4), inclusive, of § 55-15-2 .

Source: SL 2002, ch 225, § 3.
S.D. Codified Laws § 55-13-17 — SD Code / Title 55 / Chapter 13 / Section 55-13-17
Severability
Status: in_force

If any provision of this chapter or the application thereof to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application and to this end the provisions of this chapter are severable.

Source: SL 1984, ch 323, § 17.
S.D. Codified Laws § 55-16-13 — SD Code / Title 55 / Chapter 16 / Section 55-16-13
Action against trustee, advisor, or preparer of trust prohibited if action by creditor would be barred--Jurisdiction--Attorneys' fees and costs
Status: in_force

Notwithstanding any other provision of law, no action of any kind, including an action to enforce a judgment entered by a court or other body having adjudicative authority, may be brought at law or in equity against the trustee, or advisor described in § 55-16-4 , of a trust that is the subject of a qualified disposition, or against any person involved in the counseling, drafting, preparation, execution, or funding of a trust that is the subject of a qualified disposition, if, as of the date such action is brought, an action by a creditor with respect to such qualified disposition would be barred under §§ 55-16-9 to 55-16-12 , inclusive. A court of this state has exclusive jurisdiction over an action brought under a claim for relief that is based on a transfer of property to a trust that is the subject of this section. A court of this state may award attorneys' fees and costs to the prevailing party in such an action. In any action described in this section, the burden to prove the matter by clear and convincing evidence is upon the creditor.

Source: SL 2005, ch 261, § 13; SL 2007, ch 247, § 12; SL 2009, ch 252, § 44; SL 2016, ch 231, § 26.
S.D. Codified Laws § 55-11-1.1 — SD Code / Title 55 / Chapter 11 / Section 55-11-1.1
Personal property and professional services to be provided under prearranged funeral trust contract
Status: in_force

The personal property to be delivered according to the terms of a prearranged funeral trust contract includes such things as: grave liners, vaults, transportation containers, grave markers, cremation urns or vaults, grave ornamentation, flowers, statuary, floral arrangements, caskets, clothing, memorial items, guest books and other personal property incidental to a funeral or burial service. Professional services to be provided according to the terms of a prearranged funeral trust contract are the embalming of the deceased person's body or the conduct of a funeral service for hire and any other professional services associated with the disposition, storage, preparation or burial of a deceased person's body.

Source: SL 1986, ch 408, § 7.
S.D. Codified Laws § 55-13-8 — SD Code / Title 55 / Chapter 13 / Section 55-13-8
Business and farming operations
Status: in_force

(a) If a trustee uses any part of the principal in the continuance of a business of which the settlor was a sole proprietor or a partner, the net profits of the business, computed in accordance with generally accepted accounting principles for a comparable business, are income. If a loss results in any fiscal or calendar year, the loss falls on principal and shall not be carried into any other fiscal or calendar year for purposes of calculating net income.

(b) Generally accepted accounting principles shall be used to determine income from an agricultural or farming operation, including the raising of animals or the operation of a nursery.

Source: SL 1984, ch 323, § 8.
S.D. Codified Laws § 55-3-10 — SD Code / Title 55 / Chapter 3 / Section 55-3-10
Degree of care and diligence used in execution of trusts
Status: in_force

A trustee, whether he receives any compensation or not, must use at least ordinary care and diligence in the execution of his trust.

Source: SDC 1939, § 59.0205.
S.D. Codified Laws § 55-13A-201 — SD Code / Title 55 / Chapter 13A / Section 55-13A-201
Determination and distribution of net income
Status: in_force

After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply:

(1) A fiduciary of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property specifically given to a beneficiary under the rules in Articles 3 through 5 which apply to trustees and the rules in paragraph (5). The fiduciary shall distribute the net income and net principal receipts to the beneficiary who is to receive the specific property;

(2) A fiduciary shall determine the remaining net income of a decedent's estate or a terminating income interest under the rules in Articles 3 through 5 which apply to trustees and by:

(A) Including in net income all income from property used to discharge liabilities;

(B) Paying from income or principal, in the fiduciary's discretion, fees of attorneys, accountants, and fiduciaries; court costs and other expenses of administration; and interest on death taxes, but the fiduciary may pay those expenses from income of property passing to a trust for which the fiduciary claims an estate tax marital or charitable deduction only to the extent that the payment of those expenses from income will not cause the reduction or loss of the deduction; and

(C) Paying from principal all other disbursements made or incurred in connection with the settlement of a decedent's estate or the winding up of a terminating income interest, including debts, funeral expenses, disposition of remains, family allowances, and death taxes and related penalties that are apportioned to the estate or terminating income interest by the will, the terms of the trust, or applicable law.

(3) A fiduciary shall distribute to a beneficiary who receives a pecuniary amount outright the interest or any other amount provided by the will, the terms of the trust, or applicable law from net income determined under paragraph (2) or from principal to the extent that net income is insufficient. If a beneficiary is to receive a pecuniary amount outright from a trust after an income interest ends and no interest or other amount is provided for by the terms of the trust or applicable law, the fiduciary shall distribute the interest or other amount to which the beneficiary would be entitled under applicable law if the pecuniary amount were required to be paid under a will.

(4) A fiduciary shall distribute the net income remaining after distributions required by paragraph (3) in the manner described in § 55-13A-202 to all other beneficiaries, including a beneficiary who receives a pecuniary amount in trust, even if the beneficiary holds an unqualified power to withdraw assets from the trust or other presently exercisable general power of appointment over the trust.

(5) A fiduciary may not reduce principal or income receipts from property described in paragraph (1) because of a payment described in § 55-13A-501 or 55-13A-502 to the extent that the will, the terms of the trust, or applicable law requires the fiduciary to make the payment from assets other than the property or to the extent that the fiduciary recovers or expects to recover the payment from a third party. The net income and principal receipts from the property are determined by including all of the amounts the fiduciary receives or pays with respect to the property, whether those amounts accrued or became due before, on, or after the date of a decedent's death or an income interest's terminating event, and by making a reasonable provision for amounts that the fiduciary believes the estate or terminating income interest may become obligated to pay after the property is distributed.

Source: SL 2007, ch 282, § 6.
S.D. Codified Laws § 55-1A-36 — SD Code / Title 55 / Chapter 1A / Section 55-1A-36
Holding of two or more trusts with undivided interests
Status: in_force

A trustee may hold two or more trusts or parts of trusts created by the same instrument, as an undivided whole, without separation between such trusts or parts of such trusts; provided that, such separate trusts or parts of such trusts shall have undivided interests and that no such holding shall defer the vesting of any estate in possession or otherwise.

Source: SL 1979, ch 336, § 36.
S.D. Codified Laws § 55-12-20 — SD Code / Title 55 / Chapter 12 / Section 55-12-20
Procedures available to attorney general
Status: in_force

The attorney general may issue a subpoena under § 37-24-14 or an investigative demand under § 37-24-12 to any person and may conduct any hearing in aid of any investigation or inquiry. The attorney general may prescribe the forms governing:

(1) The conduct of investigations;

(2) When, what, and to whom information concerning the use of the earnings fund will be released; and

(3) The conditions under which assurances of voluntary compliance will be accepted.

Source: SL 2019, ch 210, § 3.
S.D. Codified Laws § 55-2-16 — SD Code / Title 55 / Chapter 2 / Section 55-2-16
Action that may not be taken by restricted trustee may be taken by another unrestricted trustee
Status: in_force

Any action that may not be taken by a trustee of the first trust by reason of the restrictions in subdivision 55-2-15(2) may instead be taken by any other trustee of the first trust who is not so restricted, or, if none, by the next available party who can be a successor trustee and who is not so restricted. The second trust may be a trust created or administered under the laws of any jurisdiction, within or without the United States.

Source: SL 2007, ch 281, § 2.
S.D. Codified Laws § 55-19-20 — SD Code / Title 55 / Chapter 19 / Section 55-19-20
Fiduciary right of access to digital asset
Status: in_force

A fiduciary with authority over the tangible, personal property of a decedent, protected person, principal, or settlor has the right to access the property and any digital asset stored in it, and is an authorized user for the purpose of any computer fraud or unauthorized computer access law.

Source: SL 2017, ch 209, § 20.
S.D. Codified Laws § 55-11-1 — SD Code / Title 55 / Chapter 11 / Section 55-11-1
End-of-life directives--Prearranged funeral contract--Portion of money paid under contract held in trust
Status: in_force

Before a person's death, the person or someone on the person's behalf may direct the location, manner, and conditions of disposition of the person's remains, and the arrangements for funeral goods and services to be provided upon the person's death, and contract with another person for the purchase or rental of personal property or professional services for the final disposition of the person's body. At least eighty - five percent of all money paid under the contract must be held in a revocable or an irrevocable trust, at the purchaser's option. The money must be held in trust until the obligation of the contract is fulfilled according to its terms or, if a revocable trust, the money is refunded to the person who made the payments.

Source: SL 1953, ch 496, § 1; SDC Supp 1960, § 27.1409; SL 1967, ch 104, § 1; SL 1975, ch 302, § 1; SL 1981, ch 355, § 1; SL 1986, ch 408, § 1; SL 2022, ch 113, § 11.
S.D. Codified Laws § 55-14A-4 — SD Code / Title 55 / Chapter 14A / Section 55-14A-4
Appropriation for expenditure or accumulation of endowment fund--Rules of construction
Status: in_force

(a) Subject to the intent of a donor expressed in the gift instrument, an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, and shall consider, if relevant, the following factors:

(1) The duration and preservation of the endowment fund;

(2) The purposes of the institution and the endowment fund;

(3) General economic conditions;

(4) The possible effect of inflation or deflation;

(5) The expected total return from income and the appreciation of investments;

(6) Other resources of the institution; and

(7) The investment policy of the institution.

(b) To limit the authority to appropriate for expenditure or accumulate under subsection (a), a gift instrument must specifically state the limitation.

(c) Terms in a gift instrument designating a gift as an endowment, or a direction or authorization in the gift instrument to use only "income", "interest", "dividends", or "rents, issues, or profits", or "to preserve the principal intact", or words of similar import:

(1) Create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and

(2) Do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection (a).

Source: SL 2007, ch 283, § 4.
S.D. Codified Laws § 55-3-4 — SD Code / Title 55 / Chapter 3 / Section 55-3-4
Declaration of trust--Declarations of trustor to trustee before acceptance
Status: in_force

The nature, extent, and object of a trust are expressed in the declaration of trust.

All declarations of a trustor to his trustees in relation to the trust, before its acceptance by the trustees or any of them are to be deemed part of the declaration of the trust, except that when a declaration of trust is made in writing all previous declarations by the same trustor are merged therein.

Source: SDC 1939, § 59.0203.
S.D. Codified Laws § 55-4-33 — SD Code / Title 55 / Chapter 4 / Section 55-4-33
Violations of chapter--Removal--Liability--Compensation until court ceases
Status: in_force

If a trustee violates any of the provisions of this chapter, the trustee may be removed and denied compensation in whole or in part, and any beneficiary, cotrustee, or successor trustee may treat the violation as a breach of trust. Until the cessation of compensation is ordered by a court, a trustee is entitled to fees and expenses.

Source: SL 1943, ch 308, § 20; SDC Supp 1960, § 59.0520; SL 2026, ch 198, § 4.
S.D. Codified Laws § 55-2-23 — SD Code / Title 55 / Chapter 2 / Section 55-2-23
Excluded fiduciaries and trustees--Reliance on tax information--Applicability
Status: in_force

An excluded fiduciary, as defined in § 55-1B-1 , who receives tax information regarding an asset or entity owned by the trust, any trustee of a trust that holds an asset or entity owned by the trust but who does not manage the asset or entity, and any trustee who receives tax information from the settlor, the settlor's agents, a tax trust advisor, or other individuals regarding matters that have tax implications to the trust or trust beneficiaries, may rely, without liability, on tax information it receives in any of the above situations. By way of example, if a trustee holds in trust a limited liability company interest but does not manage the limited liability company, the trustee may rely, without limitation, on any tax information received from the manager of the limited liability company or its accountant or agents.

The tax information that a trustee may rely on in the above situations may include the following:

(1) The accuracy of any information reported on a tax return;

(2) A copy of a tax return provided by the tax return preparer or the taxpayer filing the return;

(3) The representation of another fiduciary or tax advisor who filed or prepared a tax return as to the amount of any item reported on that return;

(4) The settlor's representation regarding whether a gift or generation skipping transfer tax form has ever been filed, as well as how much of the respective exemptions have been utilized; or

(5) The direction from the grantor's or settlor's tax advisors based upon any contribution or distribution, or both, for the appropriate tax filings.

An entity, for purposes of this section, is defined as set out in subdivisions 47-34A-101 (7) and 47-34A-101 (13).

This section applies to any trust in existence on or created on or after July 1, 2012.

Source: SL 2012, ch 233, § 21; SL 2025, ch 196, § 7.
S.D. Codified Laws § 55-14A-6 — SD Code / Title 55 / Chapter 14A / Section 55-14A-6
Release or modification of restrictions on management, investment, or purpose
Status: in_force

(a) If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.

(b) The court, upon application of an institution, may modify a restriction contained in a gift instrument regarding the management or investment of an institutional fund if the restriction has become impracticable or wasteful, if it impairs the management or investment of the fund, or if, because of circumstances not anticipated by the donor, a modification of a restriction will further the purposes of the fund. To the extent practicable, any modification must be made in accordance with the donor's probable intention.

(c) If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve, or wasteful, the court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument.

(d) If an institution determines that a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund is unlawful, impracticable, impossible to achieve, or wasteful, the institution may release or modify the restriction, in whole or part, if:

(1) The institutional fund subject to the restriction has a total value of less than twenty-five thousand dollars;

(2) More than twenty years have elapsed since the fund was established; and

(3) The institution uses the property in a manner consistent with the charitable purposes expressed in the gift instrument.

Source: SL 2007, ch 283, § 6.
S.D. Codified Laws § 55-3-27 — SD Code / Title 55 / Chapter 3 / Section 55-3-27
Termination of noncharitable trusts valued under one hundred fifty thousand dollars--Distribution of property
Status: in_force

Except as otherwise provided by the terms of the trust, if the value of the trust property of a noncharitable trust is less than one hundred fifty thousand dollars, the trustee may terminate the trust. On petition by a trustee or beneficiary, the court may modify or terminate a noncharitable trust or appoint a new trustee if it determines that the value of the trust property is insufficient to justify the cost of administration involved. Upon termination of a trust pursuant to this section, the trustee shall distribute the trust property in accordance with the trustor's probable intention. The existence of spendthrift or similar protective provisions in a trust does not make this section inapplicable. The court, when considering the termination of a trust containing spendthrift or similar protective provisions, shall consider the feasibility of appointing a new trustee to continue the trust. This section does not apply to a purpose trust under subdivision 55-1-21(1).

Source: SL 1998, ch 282, § 5; SL 2004, ch 312, § 12; SL 2015, ch 240, § 18; SL 2018, ch 275, § 26.
S.D. Codified Laws § 55-7-1 — SD Code / Title 55 / Chapter 7 / Section 55-7-1
Liability of third persons dealing with trustees
Status: in_force

One who actually and in good faith transfers any money or other property to a trustee as such is not bound to see to the application thereof; and his rights can in no way be prejudiced by a misapplication thereof by the trustee. Other persons must at their peril see to the proper application of money or other property paid or delivered by them.

Source: SDC 1939, § 59.0117.
S.D. Codified Laws § 55-18-15 — SD Code / Title 55 / Chapter 18 / Section 55-18-15
Disclosure of conflict of interest by notifier
Status: in_force

Unless notice of a conflict of interest has been carried out pursuant to § 55-18-14 , if the notifier knows that a representative has a conflict of interest with respect to the matter in question, the notifier shall timely disclose the nature of the conflict of interest:

(1) In a judicial proceeding to the interested parties and the court; or

(2) Otherwise, to the representative, the trustee, and, to the extent the person represented can be reasonably notified, to the person represented along with notification that that person may elect not to be bound pursuant to subdivision 55-18-4(4).

Source: SL 2017, ch 208, § 15; SL 2018, ch 275, § 36.
S.D. Codified Laws § 55-8-16 — SD Code / Title 55 / Chapter 8 / Section 55-8-16
Tax obligations of corporation or transfer agent not affected by chapter
Status: in_force

This chapter does not affect any obligation of a corporation or transfer agent with respect to estate, inheritance, succession, or other taxes imposed by the laws of this state.

Source: SL 1961, ch 22, § 9.
S.D. Codified Laws § 55-13A-601 — SD Code / Title 55 / Chapter 13A / Section 55-13A-601
Uniformity of application and construction
Status: in_force

In applying and construing this Uniform Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

Source: SL 2007, ch 282, § 32.
S.D. Codified Laws § 55-19-16 — SD Code / Title 55 / Chapter 19 / Section 55-19-16
Fiduciary duties
Status: in_force

The legal duties imposed on a fiduciary charged with managing tangible property apply to the management of digital assets, including: the duty of care, the duty of loyalty, and the duty of confidentiality.

Source: SL 2017, ch 209, § 16.
S.D. Codified Laws § 55-16-12 — SD Code / Title 55 / Chapter 16 / Section 55-16-12
Creditor or other person--Rights with respect to a qualified disposition--Action against trustee, advisor, or trust preparer prohibited
Status: in_force

Notwithstanding any law to the contrary, a creditor, including a creditor whose claim arose before or after a qualified disposition, or any other person has only such rights with respect to a qualified disposition as are provided in §§ 55-16-9 to 55-16-16 , inclusive, and no such creditor nor any other person has any claim or cause of action against the trustee, or advisor, described in § 55-16-4 , of a trust that is the subject of a qualified disposition, or against any person involved in the counseling, drafting, preparation, execution, or funding of a trust that is the subject of a qualified disposition. In addition to the provisions of § 55-1-43 , at no time is a qualified person, as defined in § 55-16-3 , personally liable to a creditor of a transferor or any other person for distributions made by the qualified person, before the creditor or person notified the qualified person, in writing, that a claim or cause of action existed. This applies regardless of whether the distributions are made to or for the benefit of the transferor or a beneficiary during the period in which a creditor or other person could make a claim as provided in § 55-16-10 .

Source: SL 2005, ch 261, § 12; SL 2012, ch 233, § 18.
S.D. Codified Laws § 55-4-21 — SD Code / Title 55 / Chapter 4 / Section 55-4-21
Action on contract against trustee--Personal liability of trustee
Status: in_force

The plaintiff in an action pursuant to § 55-4-19 may also hold the trustee who made the contract personally liable on such contract, if the contract does not exclude such personal liability. The addition of the word "trustee" or the words "as trustee" after the signature of a trustee to a contract shall be deemed prima facie evidence of an intent to exclude the trustee from personal liability.

Source: SL 1943, ch 308, § 12; SDC Supp 1960, § 59.0512 (3).
S.D. Codified Laws § 55-10A-2 — SD Code / Title 55 / Chapter 10A / Section 55-10A-2
Scope and jurisdiction
Status: in_force

This chapter applies to any transfer that refers to this chapter in the designation under § 55-10A-9 by which the transfer is made if at the time of the transfer, the transferor, the minor or the custodian is a resident of this state or the custodial property is located in this state. The custodianship so created remains subject to this chapter despite a subsequent change in residence of a transferor, the minor, or the custodian or the removal of custodial property from this state. A person designated as custodian under this chapter is subject to personal jurisdiction in this state with respect to any matter relating to the custodianship. A transfer that purports to be made and which is valid under the Uniform Transfers to Minors Act, the Uniform Gifts to Minors Act or a substantially similar act, of another state is governed by the law of the designated state and may be executed and is enforceable in this state if at the time of the transfer, the transferor, the minor or the custodian is a resident of the designated state or the custodial property is located in the designated state.

Source: SL 1986, ch 409, § 2.
S.D. Codified Laws § 55-16-11 — SD Code / Title 55 / Chapter 16 / Section 55-16-11
Disposition by transferor who is a trustee--Time of disposition
Status: in_force

A qualified disposition that is made by means of a disposition by a transferor who is a trustee is deemed to have been made as of the time, whether before, on, or after July 1, 2005, the property that is the subject of the qualified disposition was originally transferred to the transferor, or any predecessor trustee, making the qualified disposition in a form that meets the requirements of subdivisions 55-16-2(2) and (3). Further, the provisions of this section apply to determine the date the transfer is deemed to have been made, notwithstanding that the original transfer was to a trust originally within or outside of the jurisdiction of South Dakota.

If property transferred to a spendthrift trust is conveyed to the settlor or to a beneficiary for the purpose of obtaining a loan secured by a mortgage or deed of trust on the property and then reconveyed to the trust within one hundred eighty days of recording the mortgage or deed of trust, for purposes of subdivision 55-16-10(1), the transfer is disregarded and the reconveyance relates back to the date the property was originally transferred to the trust. The mortgage or deed of trust on the property is enforceable against the trust.

Source: SL 2005, ch 261, § 11; SL 2012, ch 233, § 17; SL 2016, ch 231, § 25.
S.D. Codified Laws § 55-12-12 — SD Code / Title 55 / Chapter 12 / Section 55-12-12
Nonperpetual care cemetery becoming a perpetual care cemetery--Creation and maintenance of perpetual care fund
Status: in_force

Any nonperpetual care cemetery may become a perpetual care cemetery by placing in the perpetual care trust fund twenty - five thousand dollars, five thousand dollars per acre of all property sold or one hundred dollars per burial space, whichever is less, and shall comply with the requirement for a perpetual care cemetery as provided in § 55-12-4 .

Source: SL 1955, ch 97, § 6; SDC Supp 1960, § 11.19A06; SL 1990, ch 389, § 3.
S.D. Codified Laws § 55-15-6 — SD Code / Title 55 / Chapter 15 / Section 55-15-6
Calculation of unitrust amount
Status: in_force

The unitrust amount shall be determined as follows:

(1) For the first three accounting periods of the trust, the unitrust amount for a current valuation year of the trust may not be less than three percent, nor more than five percent, by the election of the trustee, the disinterested person, or the court, of the net fair market value of the assets held in the trust on the valuation date of the current valuation year;

(2) Beginning with the fourth accounting period of the trust, the unitrust amount for a current valuation year of the trust may not be less than three percent, nor more than five percent, by the election of the trustee, the disinterested person, or the court, of the average of the net fair market value of the assets held in the trust on the valuation date of the current valuation year and the net fair market value of the assets held in the trust on the valuation date of each prior valuation year, as defined in subdivision 55-15-1(10);

(3) The percentage that may be elected by the trustee, the disinterested person, or the court in determining the unitrust amount shall be a reasonable current return from the trust, taking into account the intentions of the trustor of the trust as expressed in the governing instrument, the needs of the beneficiaries, general economic conditions, projected current earnings and appreciation for the trust, and projected inflation and its impact on the trust. However, such election by the trustee, the disinterested person, or the court in determining the unitrust amount may not be less than three percent nor more than five percent;

(4) The unitrust amount for the current valuation year shall be proportionately reduced for any distributions, in whole or in part, other than distributions of the unitrust amount, and for any payments of expenses, including debts, disbursements and taxes, from the trust within a current valuation year that the trustee determines to be material and substantial, and shall be proportionately increased for the receipt, other than a receipt that represents a return on investment, of any additional property into the trust within a current valuation year;

(5) In the case of a short accounting period, the trustee shall prorate the unitrust amount on a daily basis;

(6) If the net fair market value of an asset held in the trust has been incorrectly determined either in a current valuation year or in a prior valuation year, the unitrust amount shall be increased in the case of an undervaluation, or be decreased in the case of an overvaluation, by an amount equal to the difference between the unitrust amount determined based on the correct valuation of the asset and the unitrust amount originally determined;

(7) In determining the net fair market value of the assets held in trust, the determination may not include the value of any residential property or any tangible personal property that, as of the first business day of the current valuation year, one or more income beneficiaries of the trust have or had the right to occupy, or have or had the right to possess or control, other than in a capacity as trustee, and instead the right of occupancy or the right of possession or control shall be deemed to be the unitrust amount with respect to the residential property or the tangible personal property; or any asset specifically given to a beneficiary under the terms of the trust and the return on investment on that asset, which return on investment shall be distributed to the beneficiary.

Source: SL 2002, ch 225, § 6; SL 2004, ch 312, § 7; SL 2005, ch 260, § 9; SL 2009, ch 252, § 39; SL 2013, ch 239, § 13.
S.D. Codified Laws § 55-10A-7 — SD Code / Title 55 / Chapter 10A / Section 55-10A-7
Transfer by obligor
Status: in_force

Subject to subdivisions (1) and (2), any person not subject to § 55-10A-5 or 55-10A-6 , who holds property of or owes a liquidated debt to a minor not having a conservator may make an irrevocable transfer to a custodian for the benefit of the minor pursuant to § 55-10A-9 :

(1) If a person having the right to do so under § 55-10A-3 , has nominated a custodian under that section to receive the custodial property, the transfer must be made to that person; or

(2) If no custodian has been nominated under § 55-10A-3 , or all persons so nominated as custodian die before the transfer or are unable, decline or are ineligible to serve, a transfer under this section may be made to an adult member of the minor's family or to a trust company unless the property exceeds ten thousand dollars in value.

Source: SL 1986, ch 409, § 7.
S.D. Codified Laws § 55-4-40 — SD Code / Title 55 / Chapter 4 / Section 55-4-40
Applicability of §§55-4-38and55-4-39
Status: in_force

The provisions of §§ 55-4-38 and 55-4-39 apply to any trust established before or after July 1, 2000.

Source: SL 2000, ch 229, § 6.
S.D. Codified Laws § 55-1A-16 — SD Code / Title 55 / Chapter 1A / Section 55-1A-16
Land development or dedication--Valuation adjustments
Status: in_force

A trustee may subdivide, develop or dedicate land to public use; make or obtain the vacation of plats and adjust boundaries; adjust differences in valuation on the exchange or partition of land by giving or receiving consideration; or dedicate easements to public use without consideration.

Source: SL 1979, ch 336, § 16.
S.D. Codified Laws § 55-1A-35.1 — SD Code / Title 55 / Chapter 1A / Section 55-1A-35.1
Electronic execution of documents
Status: in_force

If otherwise validly executed, the following documents may be executed in accordance with chapter 53-12 :

(1) The governing instrument of an express trust, or other document, other than a will or codicil as defined in title 29A;

(2) The resignation, removal, appointment, or acceptance of appointment of any trustee, any advisor or protector, or of any designated representation addressed in title 55;

(3) A consent, release, ratification, or indemnification addressed in title 55; and

(4) Any other document addressed by title 55 to the extent it is not excluded from the scope of chapter 53-12 .

Notwithstanding any provision of chapter 53-12 to the contrary, the documents under this section are deemed to be a transaction, as defined in § 53-12-1 , and are within the scope of chapter 53-12 .

Source: SL 2023, ch 161, § 5; SL 2026, ch 197, § 2, eff. Jul. 1, 2027.If otherwise validly executed, the following documents may be executed in accordance with chapter 53-12 :

(1) The governing instrument of an express trust, or other document, other than a will or codicil as defined in title 29A;

(2) The resignation, removal, appointment, or acceptance of appointment of any trustee, any advisor or protector, or of any designated representation addressed in title 55;

(3) A consent, release, ratification, or indemnification addressed in title 55; and

(4) Any other document addressed by title 55 to the extent it is not excluded from the scope of chapter 53-12 .

Notwithstanding any provision of chapter 53-12 to the contrary, the documents under this section are deemed to be a transaction within the meaning of subdivision 53-12 -1(17) and are within the scope of chapter 53-12 .

Source: SL 2023, ch 161, § 5.
S.D. Codified Laws § 55-1-24 — SD Code / Title 55 / Chapter 1 / Section 55-1-24
Definitions applicable to §§55-1-24to55-1-45
Status: in_force

Terms used in §§ 55-1-24 to 55-1-45 , inclusive, mean:

(1) "Beneficial interest," is limited to mean a distribution interest or a remainder interest. A beneficial interest specifically excludes a power of appointment or a power reserved by the settlor;

(2) "Distribution beneficiary," a beneficiary who is an eligible distributee or permissible distributee of trust income or principal;

(3) "Distribution interest," a distribution interest held by a distribution beneficiary. A distribution interest may be a current distribution interest or a future distribution interest. A distribution interest may be classified as a mandatory interest, a support interest, or a discretionary interest;

(4) "Power of appointment," as defined in § 55-1-12 ;

(5) "Reach," with respect to a distribution interest or power, to subject the distribution interest or power to a judgment, decree, garnishment, attachment, execution, levy, creditor's bill or other legal, equitable, or administrative process, relief, or control of any court, tribunal, agency, or other entity as provided by law;

(6) "Remainder interest," an interest where a trust beneficiary receives the property outright at some time during the future;

(7) "Reserved power," a power held by the settlor.

Source: SL 2007, ch 280, § 1; SL 2008, ch 257, § 2; SL 2009, ch 252, § 2; SL 2011, ch 212, § 30; SL 2015, ch 240, § 10; SL 2016, ch 231, § 10.
S.D. Codified Laws § 55-19-1 — SD Code / Title 55 / Chapter 19 / Section 55-19-1
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Account," any arrangement under a terms-of-service agreement in which a custodian carries, maintains, processes, receives, or stores a digital asset of the user or provides goods or services to the user;

(2) "Agent," any attorney-in-fact granted authority under a power of attorney pursuant to chapter 59-12 or nondurable power of attorney pursuant to chapter 59-2 ;

(3) "Carries," engages in the transmission of an electronic communication;

(4) "Catalogue of electronic communications," information that identifies each person with whom a user has had an electronic communication, the time and date of the communication, and the electronic address of the person;

(5) "Conservator," any person appointed by a court to manage the estate of a living individual or protected person, including a limited conservator;

(6) "Content of an electronic communication," information concerning the substance or meaning of the communication that has been sent or received by a user; is in electronic storage by a custodian providing an electronic communication service to the public or is carried or maintained by a custodian providing a remote computing service to the public; and is not readily accessible to the public;

(7) "Court," a court of competent jurisdiction;

(8) "Custodian," any person who carries, maintains, processes, receives, or stores a digital asset of a user;

(9) "Designated recipient," any person chosen by the user of an online tool to administer digital assets of the user;

(10) "Digital asset," any electronic record in which an individual has a right or interest. The term does not include an underlying asset or liability unless the asset or liability is itself an electronic record;

(11) "Electronic," relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities;

(12) "Electronic communication," has the meaning set forth in 18 U.S.C. Section 2510(12), as of January 1, 2017;

(13) "Electronic-communication service," any custodian who provides to a user the ability to send or receive an electronic communication;

(14) "Fiduciary," any person who is an original, additional, or successor personal representative, conservator, agent, or trustee;

(15) "Information," data, text, images, videos, sounds, codes, computer programs, software, databases, or similar intelligence of any nature;

(16) "Online tool," any electronic service provided by a custodian that allows the user, in an agreement distinct from the terms-of-service agreement between the custodian and user, to provide directions for disclosure or nondisclosure of digital assets to a third person;

(17) "Person," any individual, estate, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity;

(18) "Personal representative," any executor, administrator, special administrator, or any person who performs substantially the same function under the law governing that person's status other than this chapter;

(19) "Power of attorney," any record that grants an agent authority to act in the place of a principal;

(20) "Principal," any individual who grants authority to an agent in a power of attorney;

(21) "Protected person," any individual for whom a conservator has been appointed, including an individual for whom an application for the appointment of a conservator is pending;

(22) "Record," information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form;

(23) "Remote-computing service," any custodian who provides to the public computer processing services or the storage of digital assets by means of an electronic communications system as defined in 18 U.S.C. Section 2510(14), as of January 1, 2017;

(24) "Terms-of-service agreement," any agreement that controls the relationship between a user and a custodian;

(25) "Trustee," any fiduciary, including a successor trustee, with legal title to property under an agreement or declaration that creates a beneficial interest in another;

(26) "User," any person who has an account with a custodian;

(27) "Will," includes a codicil, testamentary instrument that only appoints an executor, and instrument that revokes or revises a testamentary instrument.

Source: SL 2017, ch 209, § 1; SL 2020, ch 214, § 52.
S.D. Codified Laws § 55-9-1 — SD Code / Title 55 / Chapter 9 / Section 55-9-1
Express trusts--Creation for charitable, educational, religious, or other public use
Status: in_force

Express trusts of real or personal property, or both, may be created to receive by grant, devise, gift, or bequest, and to take charge of, invest and administer in accordance with the terms of the trust, upon and for any charitable, benevolent, educational, religious or other public use or trust.

Source: SL 1955, ch 429, § 1; SDC Supp 1960, § 59.0601.
S.D. Codified Laws § 55-2-12 — SD Code / Title 55 / Chapter 2 / Section 55-2-12
Liability and duties of successor trustee for agreements, contracts or actions of predecessor fiduciary
Status: in_force

Unless otherwise provided in the trust agreement, a successor trustee:

(1) Is not individually liable for actions or inactions of a predecessor fiduciary, including agreements, contracts accountings, records, distributions, investments, modifications, reformations, or other acts entered into by its predecessor fiduciary; and

(2) Does not have a duty to:

(a) Confirm or validate such predecessor fiduciary's actions or inactions;

(b) Confirm the validity of the trust agreement; or

(c) Prosecute or seek redress for any action or inaction by the predecessor fiduciary.

Source: SL 1991, ch 229, § 2; SL 2021, ch 207, § 10.
S.D. Codified Laws § 55-1A-24 — SD Code / Title 55 / Chapter 1A / Section 55-1A-24
Contracts binding upon trust
Status: in_force

A trustee may enter into contracts binding upon his trust which are reasonably incident to the administration of the trust and which he believes to be for the best interests of the trust.

Source: SL 1979, ch 336, § 24.
S.D. Codified Laws § 55-9-11 — SD Code / Title 55 / Chapter 9 / Section 55-9-11
Investments to jeopardize exempt purposes prohibited
Status: in_force

The trustee of a trust described in § 55-9-7 shall not make any investments which would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of section 4944 of the Internal Revenue Code, so as to give rise to any liability for the tax imposed by section 4944 (a) of the Internal Revenue Code.

Source: SL 1972, ch 259, § 2 (4).
S.D. Codified Laws § 55-3-23 — SD Code / Title 55 / Chapter 3 / Section 55-3-23
Termination of trust
Status: in_force

In addition to the methods specified in §§ 55-3-24 to 55-3-27 , inclusive, a trust terminates if:

(1) The term of the trust expires;

(2) The trust purpose is fulfilled;

(3) The trust purpose becomes unlawful or impossible to fulfill; or

(4) The trust is revoked.

Source: SL 1998, ch 282, § 1; SL 2016, ch 231, § 21.
S.D. Codified Laws § 55-18-7 — SD Code / Title 55 / Chapter 18 / Section 55-18-7
Demand for notice
Status: in_force

Following the commencement of a judicial proceeding, if a beneficiary timely files a demand for notice with the court, notice shall be given to the beneficiary unless otherwise ordered by the court.

Source: SL 2017, ch 208, § 7; SL 2018, ch 275, § 33.
S.D. Codified Laws § 55-8-5 — SD Code / Title 55 / Chapter 8 / Section 55-8-5
Assignment of security by fiduciary--Assumption as to authority and capacity
Status: in_force

Except as otherwise provided in this chapter, a corporation or transfer agent making a transfer of a security pursuant to an assignment by a fiduciary may assume without inquiry that the assignment, even though to the fiduciary himself or to his nominee, is within his authority and capacity and is not in breach of his fiduciary duties.

Source: SL 1961, ch 22, § 3 (1).
S.D. Codified Laws § 55-13A-410 — SD Code / Title 55 / Chapter 13A / Section 55-13A-410
Liquidating asset
Status: in_force

(a) In this section, the term, liquidating asset, means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to § 55-13A-409 , resources subject to § 55-13A-411 , timber subject to § 55-13A-412 , an activity subject to § 55-13A-414 , an asset subject to § 55-13A-415 , or any asset for which the trustee establishes a reserve for depreciation under § 55-13A-503 .

(b) A trustee shall allocate to income ten percent of the receipts from a liquidating asset and the balance to principal.

Source: SL 2007, ch 282, § 20.
S.D. Codified Laws § 55-4-8 — SD Code / Title 55 / Chapter 4 / Section 55-4-8
Trust to pay special debts--Failure of beneficiary to present claim for payment--Revocation of trust by depositor
Status: in_force

If any beneficiary for whom a trust is created pursuant to § 55-4-7 does not present his claim to the bank for payment within one year after it is due, the depositor who created such trust may revoke it as to such creditor.

Source: SL 1943, ch 308, § 2; SDC Supp 1960, § 59.0502 (2).
S.D. Codified Laws § 55-6-1.1 — SD Code / Title 55 / Chapter 6 / Section 55-6-1.1
Common trust fund defined
Status: in_force

For purposes of this chapter, the term, common trust fund, is a fund as defined in 12 C.F.R. 9.18(a)(1) as of January 1, 2011, and is provided exemption from taxation according to 26 U.S.C. 584 as of January 1, 2011.

Source: SL 2011, ch 212, § 28.
S.D. Codified Laws § 55-3-26 — SD Code / Title 55 / Chapter 3 / Section 55-3-26
Petition to modify terms of trust--Circumstances--Distribution of property
Status: in_force

On petition by a trustee or beneficiary, the court may modify the administrative or dispositive terms of the trust or terminate the trust if, because of circumstances not anticipated by the trustor, modification or termination of the trust would substantially further the trustor's purposes in creating the trust. Upon termination of a trust under this section, the trust property shall be distributed in accordance with the trustor's probable intention.

Source: SL 1998, ch 282, § 4.
S.D. Codified Laws § 55-17-13 — SD Code / Title 55 / Chapter 17 / Section 55-17-13
Bona fide purchaser defined
Status: in_force

For purposes of § 55-17-12 , the term, bona fide purchaser, means a purchaser of property for value who has not knowingly been a party to fraud or illegality affecting the interest of the spouses or other parties to the transaction, does not have notice of an adverse claim by a spouse, and has acted in the transaction in good faith.

For purposes of this section, the term, purchaser, means a person who acquires property by sale, lease, discount, negotiation, mortgage, pledge, or lien, or otherwise deals with property in a voluntary transaction other than making a gift.

A purchaser gives value for property if the property is acquired:

(1) In return for a binding commitment to extend credit;

(2) As security for or in total or partial satisfaction of a preexisting claim;

(3) By accepting delivery under a preexisting contract for purchase; or

(4) In return for other consideration sufficient to support a contract.

Source: SL 2016, ch 231, § 41.
S.D. Codified Laws § 55-15-4 — SD Code / Title 55 / Chapter 15 / Section 55-15-4
Trustee may petition court--Appointment of disinterested person
Status: in_force

If any trustee desires to (i) convert an income trust to a total return unitrust, (ii) reconvert a total return unitrust to an income trust, or (iii) change the percentage used to calculate the unitrust amount and the method used to determine the fair market value of the trust but does not have the ability to or elects not to do it under the provisions of §§ 55-15-2 and 55-15-3 , or in the event the trustee receives a written objection within the applicable period, the trustee may petition the court for such order as the trustee deems appropriate. In the event, however, there is only one trustee of such trust and such trustee is an interested trustee or in the event there are two or more trustees of such trust and a majority of them are interested trustees, the court, in its own discretion or on the petition of such trustee or trustees or any person interested in the trust, may appoint a disinterested person who, acting in a fiduciary capacity, shall present such information to the court as shall be necessary to enable the court to make its determination.

Source: SL 2002, ch 225, § 4.
S.D. Codified Laws § 55-3-29 — SD Code / Title 55 / Chapter 3 / Section 55-3-29
Trustee may combine or divide trusts--Rights of beneficiaries--Trust purposes--Petition to court
Status: in_force

Without approval of court and except as otherwise provided by the terms of the trust, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts, if the combination or division does not impair the rights of any of the beneficiaries or substantially affect the accomplishment of the trust purposes. On petition by a trustee or beneficiary, the court may affirm or prevent a proposed combination or division; and, if the terms of the trust instruments creating the trusts are inconsistent, the court shall resolve such inconsistencies in its order by establishing the terms of the trust that will survive the combination or division.

Source: SL 1998, ch 282, § 7; SL 2004, ch 312, § 11.
S.D. Codified Laws § 55-13A-301 — SD Code / Title 55 / Chapter 13A / Section 55-13A-301
When right to income begins and ends
Status: in_force

(a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.

(b) An asset becomes subject to a trust:

(1) On the date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life;

(2) On the date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or

(3) On the date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.

(c) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (d), even if there is an intervening period of administration to wind up the preceding income interest.

(d) An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.

Source: SL 2007, ch 282, § 8.
S.D. Codified Laws § 55-4-56 — SD Code / Title 55 / Chapter 4 / Section 55-4-56
Right to obtain copy of trust instrument in judicial proceeding
Status: in_force

The provisions of §§ 55-4-51 to 55-4-55 , inclusive, do not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust.

Source: SL 2009, ch 252, § 29.
S.D. Codified Laws § 55-4-28 — SD Code / Title 55 / Chapter 4 / Section 55-4-28
Personal liability for tort committed by trustee
Status: in_force

The trustee may also be held personally liable for any tort committed by him, or by his agents or employees in the course of their employments, subject to the rights of exoneration or reimbursement provided in §§ 55-4-22 and 55-4-23 .

Source: SL 1943, ch 308, § 14; SDC Supp 1960, § 59.0514 (4).
S.D. Codified Laws § 55-8-10 — SD Code / Title 55 / Chapter 8 / Section 55-8-10
Claim of beneficial interest adverse to transfer of security--Notice of presentment to claimant--Restraining order
Status: in_force

As soon as practicable after the presentation of a security for transfer pursuant to an assignment by a fiduciary, a corporation or transfer agent which has received notice of a claim of beneficial interest adverse to the transfer may send notice of the presentation by registered or certified mail to the claimant at the address given by him. If the corporation or transfer agent so mails such a notice it shall withhold the transfer for thirty days after the mailing and shall then make the transfer unless restrained by a court order.

Source: SL 1961, ch 22, § 5 (2).
S.D. Codified Laws § 55-1-21.11 — SD Code / Title 55 / Chapter 1 / Section 55-1-21.11
Co-enforcer appointment--Powers
Status: in_force

Unless specifically restricted by the governing instrument, an enforcer may appoint an individual or a corporate fiduciary as a co-enforcer. The appointed co-enforcer may serve only as long as the appointing enforcer serves, or as long as the last to serve if more than one enforcer appointed the co-enforcer. The appointed co-enforcer may not become a successor enforcer upon the death, resignation, or incapacity of the appointing enforcer, unless appointed under the terms of the governing instrument or unless no other successor enforcer, or method for appointing a successor enforcer, is provided in the governing instrument.

The powers and the responsibilities of the appointed co-enforcer may be limited by the appointing enforcer in a writing signed by the appointing enforcer at the time of the appointment. If the powers or responsibilities are so limited, the powers or responsibilities of the co-enforcer shall be limited as set forth in writing. Unless the powers or responsibilities are so limited, the appointed co-enforcer may exercise all the powers of the appointing enforcer. The combined powers of the appointed co-enforcer and the appointing enforcer may not exceed the powers of the appointing enforcer alone. The enforcer appointing a co-enforcer may, in writing, revoke the appointment at any time, with or without cause.

Unless specifically restricted by the governing instrument, if the governing instrument gives a fiduciary other than the enforcer the power to remove and replace the enforcer, such power includes the power to appoint a co-enforcer to serve with the current enforcer.

If an appointment under this section confers upon the appointed co-enforcer, to the exclusion of another co-enforcer, the power to take certain actions, including the power to direct or prevent certain actions of the enforcers, the limitations on liability and the relief from duties and obligations afforded an excluded fiduciary under § 55-1B-2 apply to a co-enforcer who does not hold such power.

If the governing instrument is silent concerning the enforcer's power to appoint a co-enforcer, the enforcer shall notify in writing, the trustor, if living, the current trustee or trustees, and any trust protector, trust advisors, and co-enforcers at least thirty days prior to the effective date of the enforcer's exercise of the power granted under this section. The notice, which shall include a copy of the proposed action, shall advise the trustor, the current trustee or trustees, trust protector, trust advisors, or co-enforcers that if they object to the enforcer's appointment, they need to file a written objection with the enforcer prior to the effective date set out in the notice of the proposed action. If an objection is received by the enforcer, prior to the effective date of the appointment, the enforcer may not appoint a co-enforcer. However, this section does not limit the power of the enforcer under law to petition the court for approval of the appointment. If no objection has been timely made, the proposed appointment becomes effective on the later of the date set out in the notice or thirty days after notice has been given. The notice shall be sent by any means allowed under the terms of the trust instrument or authorized in § 55-2-24 to the trustor, the current trustee or trustees, trust protector, trust advisors, or co-enforcers.

The provisions of this section are effective for trusts created before, on, or after July 1, 2023, except as otherwise directed by the trustor, current trustee or trustees, trust protector, trust advisors, or other fiduciary designated by the terms of the trust.

Source: SL 2023, ch 161, § 2.
S.D. Codified Laws § 55-13-2 — SD Code / Title 55 / Chapter 13 / Section 55-13-2
Duty of trustee as to receipts and expenditures
Status: in_force

(a) A trust shall be administered with due regard to the respective interests of income beneficiaries and remaindermen. A trust is so administered with respect to the allocation of receipts and expenditures if a receipt is credited or an expenditure is charged to income or principal or partly to each

(1) in accordance with the terms of the trust instrument, notwithstanding contrary provisions of this chapter;

(2) in the absence of any contrary terms of the trust instrument, in accordance with the provisions of this chapter; or

(3) if neither of the preceding rules of administration is applicable, in accordance with what is reasonable and equitable in view of the interests of those entitled to income as well as of those entitled to principal, and in view of the manner in which men of ordinary prudence, discretion and judgment would act in the management of their own affairs.

(b) If the trust instrument gives the trustee discretion in crediting a receipt or charging an expenditure to income or principal or partly to each, no inference of imprudence or partiality arises from the fact that the trustee has made an allocation contrary to a provision of this chapter.

Source: SL 1984, ch 323, § 2.
S.D. Codified Laws § 55-4-58 — SD Code / Title 55 / Chapter 4 / Section 55-4-58
Presentation of claims against property of trust revocable at settlor's death
Status: in_force

(a) After the death of a settlor, and subject to the settlor's right to direct the source from which liabilities will be paid, the property of a trust that was revocable at the settlor's death is subject to claims of the settlor's creditors, costs of administration of the settlor's estate, the expenses of the settlor's funeral and disposal of remains, and statutory allowances to a surviving spouse and children to the extent the settlor's probate estate is inadequate to satisfy those claims, costs, and expenses.

(b) A trustee may:

(1) If the trustee has knowledge of a creditor or potential creditor, provide written notice to the creditor or potential creditor at their last known address, advising the creditor that a claim may not be paid if the creditor fails to present a claim within sixty days of the date of such notice; and

(2) For all unknown creditors and all creditors which the trustee, in good faith, is unable to locate, publish notice to such creditors once a week for three successive weeks in a legal newspaper in the county:

(A) Where the settlor was last a resident if the deceased settlor was a resident of South Dakota; or

(B) Where the principal administration of the trust takes place if the deceased settlor was a nonresident of South Dakota.

The published notice shall state that creditors of a deceased settlor must present their claim within four months after the date of the first publication of the notice or any claim or collection efforts which otherwise could have been asserted or enforced against the trust or assets thereof may be barred.

For purposes of this section, a trustee has knowledge of a creditor or potential creditor if the trustee is aware that the creditor has demanded payment from the settlor or the settlor's estate.

(c) Creditors of the deceased settlor who are given written notice or receive notice by publication are barred if no claim is filed within the applicable period.

(d) Claims by a creditor of a deceased settlor may be presented to the trustee by any of the following three methods:

(1) The creditor may deliver or mail to the trustee a written statement of the claim indicating its basis, the name and address of the creditor, and the amount claimed;

(2) If the trust is court-supervised, the creditor may file a written statement of the claim with the clerk of courts and mail or deliver a copy thereof to the trustee. The claim is deemed presented on the first to occur of the receipt of the written statement of claim by the trustee, or the filing of the claim with the clerk of courts; or

(3) The creditor may commence a proceeding against the trust in any court where the trustee may be subject to jurisdiction, to obtain payment of the claim. Such a claim is deemed presented on the date the proceeding is commended.

(e) If a claim is not yet due, the date when it will become due shall be stated in the written statement of the claim. If the claim is contingent or unliquidated, the nature of the uncertainty shall be described. If the claim is secured, the nature of the security shall be described. Failure to describe correctly the nature of the security or uncertainty, or the due date of a claim not yet due, does not invalidate the presentation.

(f) No presentation of claim is required in regard to matters claimed in proceedings against a settlor which were pending at the time of the death of the settlor in any court.

(g) No trustee may incur liability for a nonnegligent or nonwillful failure to give notice to a particular creditor.

(h) If the applicable assets of the trust that are otherwise subject to the claim of an unbarred creditor are insufficient to pay the claim in full, the trustee shall make payment in the following order:

(1) Costs and expenses relating to administration of the trust or estate;

(2) Reasonable funeral expenses of the settlor;

(3) Debts and taxes with preference under federal law;

(4) Debts and taxes with preference under other laws of this state;

(5) All other claims.

(i) In paying claims of a deceased settlor, the trustee shall give no preference in the payment of any claim over any other claim of the same class, and a claim due and payable is not entitled to a preference over claims not yet due except as to claims which are compromised in part or in full.

(j) Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to pay creditor claims with the trust property in accordance with the terms of the trust and this section. The trustee is not subject to liability for doing so unless:

(1) The trustee knows of a pending proceeding contesting the validity of the trust or regarding a creditor's claim; or

(2) A potential contestant or creditor has notified the trustee of a possible proceeding to contest the trust or regarding a creditor's claim, and a proceeding is commenced within sixty days after the contestant sent the notification.

However, the trustee may pay creditor claims without liability so long as the trustee determines that, at the time of the determination, the assets of the trust are reasonably adequate to allow for payment of the claim in view of the type of proceeding, the amount at issue, and the likelihood of its probable success.

(k) A creditor who has received a payment from the trustee, if it is later determined to have been invalid, or wrongfully paid under this section, is liable to return any payment received to the trustee. If the creditor refuses to return the payment, the creditor may be liable for all costs, including attorney's fees, incurred for the recovery of the payment.

(l) Except as to creditors barred by publication or by written notice, the statute of limitations provisions of §§ 29A-3-802(b) and 29A-3-803(a)(3) apply.

(m) Nothing in this section requires a trustee to give notice to a secured creditor of a settlor, nor diminish the rights of a secured creditor under applicable law.

Source: SL 2010, ch 232, § 12.
S.D. Codified Laws § 55-16-3 — SD Code / Title 55 / Chapter 16 / Section 55-16-3
Qualified person defined
Status: in_force

For the purposes of this chapter, a qualified person is any person who qualifies as a qualified person under § 55-3-41 and who meets all the requirements of § 55-3-39 other than the transferor.

Source: SL 2005, ch 261, § 3; SL 2009, ch 252, § 42.
S.D. Codified Laws § 55-1-24.1 — SD Code / Title 55 / Chapter 1 / Section 55-1-24.1
Improper motive
Status: in_force

For purposes of §§ 55-1-24 to 55-1-45 , inclusive, improper motive is demonstrated by action such as the following:

(1) A trustee refusing to make or limiting distributions to beneficiaries other than the trustee due to the trustee's self interest when the trustee also holds a beneficial interest subject to a discretionary interest; or

(2) A trustee making a distribution in excess of an ascertainable standard to himself or herself as beneficiary when the trustee is restricted by an ascertainable standard in the trust.

Source: SL 2008, ch 257, § 3; SL 2011, ch 212, § 31.
S.D. Codified Laws § 55-2-10 — SD Code / Title 55 / Chapter 2 / Section 55-2-10
Measure of liability for unauthorized use or disposal of trust property--Intent to serve interest of beneficiary
Status: in_force

A trustee who uses or disposes of the trust property in any manner not authorized by the trust but in good faith and with intent to serve the interest of the beneficiary is liable only to make good whatever is lost to the beneficiary by his error.

Source: SDC 1939, § 59.0115.
S.D. Codified Laws § 55-5-17 — SD Code / Title 55 / Chapter 5 / Section 55-5-17
Duties of trustee with respect to life insurance--Notice to settlor
Status: in_force

(a) Unless otherwise required by the terms of the trust instrument or court order, no trustee of a trust, with respect to acquiring, retaining, or disposing of a contract of insurance or holding one or more insurance contracts upon the life of the settlor, or the lives of the settlor and the settlor's spouse, has the following duties:

(1) To determine whether any such contract is or remains a proper investment;

(2) To investigate the financial strength or changes in the financial strength of the life insurance company;

(3) To make a determination of whether to exercise any policy options available under any such contract;

(4) To make a determination of whether to diversify any such contract relative to one another or to other assets, if any, administered by the trustee;

(5) To inquire about changes in the health or financial condition of the insured or insured's relative to any such contract; or

(6) To vote, or give proxies to vote, on corporate matters.

A trustee of a revocable or an irrevocable trust, or of either a directed trust pursuant to chapter 55-1B or a delegated trust pursuant to § 55-5-16 , is not liable to the beneficiaries of the trust or to any other party for any loss arising from the absence of those duties upon the trustee.

(b) The trustee of a trust described under subsection (a) of this section which was established prior to the effective date of this section, shall notify the settlor in writing that, unless the settlor provides written notice to the contrary to the trustee within sixty days of the trustee's notice, the provisions of subsection (a) of this section shall apply to the trust. Subsection (a) of this section does not apply if, within sixty days of the trustee's notice, the settlor notifies the trustee that subsection (a) does not apply.

Source: SL 2010, ch 232, § 15; SL 2012, ch 233, § 27; SL 2014, ch 226, § 5.
S.D. Codified Laws § 55-1-7 — SD Code / Title 55 / Chapter 1 / Section 55-1-7
Wrongful detention creates implied trust
Status: in_force

One who wrongfully detains a thing is an implied trustee thereof for the benefit of the owner.

Source: SDC 1939, § 59.0102 (1).
S.D. Codified Laws § 55-18-14 — SD Code / Title 55 / Chapter 18 / Section 55-18-14
Disclosure of conflict of interest by representative
Status: in_force

If a representative knows that the representative has a conflict of interest with respect to the matter in question, the representative shall timely disclose the nature of the conflict of interest:

(1) In a judicial proceeding to the interested parties and the court; or

(2) Otherwise to the notifier and the trustee.

Source: SL 2017, ch 208, § 14.
S.D. Codified Laws § 55-13A-414 — SD Code / Title 55 / Chapter 13A / Section 55-13A-414
Derivatives and options
Status: in_force

(a) In this section, the term, derivative, means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.

(b) To the extent that a trustee does not account under § 55-13A-403 for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.

(c) If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option must be allocated to principal. An amount paid to acquire the option must be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, must be allocated to principal.

Source: SL 2007, ch 282, § 24.
S.D. Codified Laws § 55-11-8 — SD Code / Title 55 / Chapter 11 / Section 55-11-8
Information to be submitted upon registration
Status: in_force

When a person registers to sell prearranged funeral trust contracts, he shall submit to the State Board of Funeral Service the following information:

(1) The name and address of the funeral establishment or cemetery association which has authorized him to sell prearranged funeral trust contracts;

(2) His name and address;

(3) A sworn statement that he has not been convicted of any crime within the last five years involving the elements of fraud or misrepresentation; and

(4) A statement of compliance with chapter 37-13 .

Source: SL 1986, ch 408, § 6.
S.D. Codified Laws § 55-12-9 — SD Code / Title 55 / Chapter 12 / Section 55-12-9
Nonperpetual care cemeteries
Status: in_force

All other organizations subject to the provisions of this chapter shall be nonperpetual care cemeteries.

Source: SL 1955, ch 97, § 5; SDC Supp 1960, § 11.19A05.
S.D. Codified Laws § 55-13A-415 — SD Code / Title 55 / Chapter 13A / Section 55-13A-415
Asset-backed securities
Status: in_force

(a) In this section, the term, asset- backed security, means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return. The term does not include an asset to which § 55-13A-401 or 55-13A-409 applies.

(b) If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment which the payer identifies as being from interest or other current return and shall allocate the balance of the payment to principal.

(c) If a trust receives one or more payments in exchange for the trust's entire interest in an asset-backed security in one accounting period, the trustee shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust's interest in the security over more than one accounting period, the trustee shall allocate ten percent of the payment to income and the balance to principal.

Source: SL 2007, ch 282, § 25.
S.D. Codified Laws § 55-13-4 — SD Code / Title 55 / Chapter 13 / Section 55-13-4
When right to income arises--Apportionment of income
Status: in_force

(a) An income beneficiary is entitled to income from the date specified in the trust instrument, or, if none is specified, from the date an asset becomes subject to the trust. In the case of an asset becoming subject to a trust by reason of a will, it becomes subject to the trust as of the date of the death of the testator even though there is an intervening period of administration of the testator's estate.

(b) In the administration of a decedent's estate or an asset becoming subject to a trust by reason of a will

(1) receipts due but not paid at the date of death of the testator are principal;

(2) receipts in the form of periodic payments (other than corporate distributions to stockholders), including rent, interest, or annuities, not due at the date of the death of the testator shall be treated as accruing from day to day. That portion of the receipt accruing before the date of death is principal, and the balance is income.

(c) In all other cases, any receipt from an income producing asset is income even though the receipt was earned or accrued in whole or in part before the date when the asset became subject to the trust.

(d) On termination of an income interest, the income beneficiary whose interest is terminated, or his estate, is entitled to

(1) income undistributed on the date of termination;

(2) income due but not paid to the trustee on the date of termination;

(3) income in the form of periodic payments (other than corporate distributions to stockholders), including rent, interest, or annuities, not due on the date of termination, accrued from day to day.

(e) Corporate distributions to stockholders shall be treated as due on the day fixed by the corporation for determination of stockholders of record entitled to distribution or, if no date is fixed, on the date of declaration of the distribution by the corporation.

Source: SL 1984, ch 323, § 4.
S.D. Codified Laws § 55-1-15 — SD Code / Title 55 / Chapter 1 / Section 55-1-15
Certain trusts not terminated upon trustor's death
Status: in_force

A trust which provides for one or more successor beneficiaries upon the death of the trustor is not invalid, merged or terminated if:

(1) There is a trustor who is the sole trustee and the sole beneficiary during the trustor's lifetime; or

(2) There are two or more trustors, one or more of whom is trustee, and the beneficial interest of the trust is in one or more of the trustors during the lifetime of the trustors.

Source: SL 1991, ch 395, § 1.
S.D. Codified Laws § 55-1A-5 — SD Code / Title 55 / Chapter 1A / Section 55-1A-5
Retention of trust property by trustee
Status: in_force

A trustee may collect, hold, and retain trust assets until, in his judgment, disposition of the assets should be made, without regard to any effect the retention may have upon the diversification of the trust estate. Trust property may be retained even though it includes an asset in which its trustee is personally interested.

Source: SL 1979, ch 336, § 5.
S.D. Codified Laws § 55-1-20 — SD Code / Title 55 / Chapter 1 / Section 55-1-20
Trusts for noncharitable purposes
Status: in_force

Subdivisions 55-1-4(2) and 55-1-5(2) notwithstanding, a purpose trust may be performed pursuant to this section and §§ 55-1-21 to 55-1-22.6 , inclusive, if the trust is for a lawful noncharitable purpose or purposes. Any property may form a part or all of the trust estate, including some, all, or an interest in some or all of the property that is the subject or purpose of a purpose trust. A governing instrument of such a trust shall be liberally construed in favor of its validity to presume against the merely precatory or honorary nature of the disposition and to carry out the trustor's intent. If necessary, extrinsic evidence is admissible to determine the trustor's intent. Neither the common law rule against perpetuities, nor any rule restricting the accumulation of income, nor any common law rule limiting the duration of noncharitable purpose trusts is in force in this state.

Source: SL 2006, ch 247, § 1; SL 2008, ch 257, § 1; SL 2011, ch 212, § 40; SL 2018, ch 275, § 2.
S.D. Codified Laws § 55-3-20.1 — SD Code / Title 55 / Chapter 3 / Section 55-3-20.1
Grounds for removal of trustee
Status: in_force

In addition to other remedies available by law and procedures or powers set out in a trust instrument, the settlor, or the settlor's agent, a trust protector, a cotrustee, or a qualified beneficiary as defined in § 55-2-13 , or an enforcer, as defined in § 55-1-21.4 , may request the court to remove a trustee, or a trustee may be removed by the court on the court's own initiative.

In addition to the powers otherwise granted the court, the court may remove a trustee if:

(1) The trustee commits a serious breach of trust;

(2) Lack of cooperation among cotrustees substantially impairs the administration of the trust;

(3) Because of unfitness, unwillingness, persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries;

(4) There is a substantial change of circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available; or

(5) If the trustee merges with another institution or the location or place of administration of the trust changes, and the court finds that removal of the trustee best serves the interests of all of the beneficiaries, and a suitable cotrustee or successor trustee is available.

Pending a final decision on a request to remove a trustee, the court may order such appropriate relief as may be necessary to protect the trust property or the interests of the beneficiaries.

Source: SL 2009, ch 252, § 23; SL 2015, ch 240, § 17; SL 2020, ch 206, § 14.
S.D. Codified Laws § 55-2-18 — SD Code / Title 55 / Chapter 2 / Section 55-2-18
Exercise of power to distribute income or principal by written instrument--Notice to beneficiaries of first trust
Status: in_force

The exercise of the power to distribute the income or principal of the trust under § 55-2-15 shall be by an instrument in writing, signed and acknowledged by the trustee and filed with the records of the trust. The trustee of the first trust may notify the beneficiaries of the first trust, in writing, prior to the effective date of the trustee's exercise of the power under § 55-2-15 (applying chapter 55-18 ). A copy of the exercise of this authority and the second trust agreement shall satisfy this notice provision. For the purposes of this section, the term, beneficiaries, means those persons who would be entitled to notice and a copy of the first trust instrument under § 55-2-13 .

Source: SL 2007, ch 281, § 4; SL 2009, ch 252, § 19; SL 2013, ch 239, § 17; SL 2017, ch 208, § 31.
S.D. Codified Laws § 55-10A-23 — SD Code / Title 55 / Chapter 10A / Section 55-10A-23
Applicability
Status: in_force

This chapter applies to a transfer within the scope of § 55-10A-2 made after July 1, 1986 if:

(1) The transfer purports to have been made under the Uniform Gifts to Minors Act of South Dakota; or

(2) The instrument by which the transfer purports to have been made uses in substance the designation "as custodian under the Uniform Gifts to Minors Act" or "as custodian under the Uniform Transfers to Minors Act" of any other state, and the application of this chapter is necessary to validate the transfer.

Source: SL 1986, ch 409, § 23.
S.D. Codified Laws § 55-18-12 — SD Code / Title 55 / Chapter 18 / Section 55-18-12
Petition for advance approval of action
Status: in_force

A representative may petition the court for an order approving the representative's actions prior to or in advance of the representative's action, upon such notice as the court may order.

Source: SL 2017, ch 208, § 12.
S.D. Codified Laws § 55-12-11 — SD Code / Title 55 / Chapter 12 / Section 55-12-11
Forms to disclose status as nonperpetual care cemetery--Information to purchaser of lot
Status: in_force

Each nonperpetual care cemetery shall also have printed or stamped at the head of all its contracts, deeds, statements, letterheads and advertising material, the legend: "This is a nonperpetual care cemetery," and shall not sell any lot or interment space therein unless the purchaser thereof is informed that the cemetery is a nonperpetual care cemetery.

Source: SL 1955, ch 97, § 5; SDC Supp 1960, § 11.19A05.
S.D. Codified Laws § 55-4-51.2 — SD Code / Title 55 / Chapter 4 / Section 55-4-51.2
Applicability of §§55-4-51and55-4-51.1
Status: in_force

Sections 55-4-51 and 55-4-51.1 are effective July 1, 2010, but apply to trust instruments and wills whenever created or executed.

Source: SL 2010, ch 232, § 9.
S.D. Codified Laws § 55-13-7 — SD Code / Title 55 / Chapter 13 / Section 55-13-7
Increase in value of certain trust investments distributable as income
Status: in_force

(a) Unless otherwise provided in the trust instrument, an increase in the value of the following investments owned by any trust is distributable as income when it becomes available for distribution:

(1) A zero coupon bond;

(2) An annuity contract before annuitization;

(3) A life insurance contract before the death of the insured;

(4) An interest in a common trust fund (as defined under § 584 of the Internal Revenue Code) (26 U.S.C. § 584);

(5) An interest in a partnership, as defined in § 7701 of the Internal Revenue Code (26 U.S.C. § 7701); or

(6) Any other obligation for the payment of money that is payable at a future time in accordance with a fixed, variable, or discretionary schedule of appreciation in excess of the price at which it was issued.

(b) For purposes of this section, the increase in value of an investment described in subsection (a) is available for distribution only if the trustee receives cash on account of the investment.

(c) The increase in value of the obligations described in subsection (a) is distributable to the beneficiary who was the income beneficiary at the time of the increase from the first principal cash available or, if none is available, when realized by sale, redemption, or other disposition. If unrealized increase is distributed as income but out of principal, the principal shall be reimbursed from the increase when realized.

Source: SL 1984, ch 323, § 7; SL 1995, ch 272, § 1; SL 2002, ch 100, § 25.
S.D. Codified Laws § 55-14A-5 — SD Code / Title 55 / Chapter 14A / Section 55-14A-5
Delegation of management and investment functions
Status: in_force

(a) Subject to any specific limitation set forth in a gift instrument or in law other than this chapter, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in:

(1) Selecting an agent;

(2) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and

(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.

(b) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.

(c) An institution that complies with subsection (a) is not liable for the decisions or actions of an agent to which the function was delegated.

(d) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.

(e) An institution may delegate management and investment functions to its committees, officers, or employees as authorized by law of this state other than this chapter.

Source: SL 2007, ch 283, § 5.
S.D. Codified Laws § 55-3-19 — SD Code / Title 55 / Chapter 3 / Section 55-3-19
Discharge of trustee before trust executed--Duty to secure appointment of successor
Status: in_force

If a trustee procures or assents to his discharge from his office before his trust is fully executed, he must use at least ordinary care and diligence to secure the appointment of a trustworthy successor before accepting his own final discharge.

Source: SDC 1939, § 59.0206.
S.D. Codified Laws § 55-16-4 — SD Code / Title 55 / Chapter 16 / Section 55-16-4
Persons and entities not to be considered qualified person--Appointment, removal, or replacement of co-trustee, trust advisor, or trust protector
Status: in_force

Neither the transferor nor any other natural person who is a nonresident of this state nor an entity that is not authorized by the law of this state to act as a trustee or whose activities are not subject to supervision as provided in § 55-16-3 may be considered a qualified person. However, nothing in this chapter precludes a transferor from appointing, removing, or replacing one or more co-trustees, trust advisors, or trust protectors, regardless of whether or not such trust advisor or trust protector is a fiduciary.

Source: SL 2005, ch 261, § 4; SL 2006, ch 243, § 5; SL 2011, ch 212, § 6.
S.D. Codified Laws § 55-1-31 — SD Code / Title 55 / Chapter 1 / Section 55-1-31
Resources of settlor's spouse to be considered in making distribution from support trust--Other beneficiary's resources need not be considered
Status: in_force

Unless otherwise provided in the trust, if the settlor's spouse is named as beneficiary, the settlor's spouse is still living, and the trust is classified as a support trust, then the trustee shall consider the resources of the settlor's spouse, including the settlor's obligation of support, prior to making a distribution. In all other cases, unless otherwise provided in the trust, the trustee need not consider the beneficiary's resources in determining whether a distribution should be made.

Source: SL 2007, ch 280, § 8; SL 2009, ch 252, § 5; SL 2011, ch 212, § 33.
S.D. Codified Laws § 55-13A-411 — SD Code / Title 55 / Chapter 13A / Section 55-13A-411
Minerals, water, and other natural resources
Status: in_force

(a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:

(1) If received as nominal delay rental or nominal annual rent on a lease, a receipt must be allocated to income;

(2) If received from a production payment, a receipt must be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal;

(3) If an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, ninety percent must be allocated to principal and the balance to income;

(4) If an amount is received from a working interest or any other interest not provided for in paragraph (1), (2), or (3), ninety percent of the net amount received must be allocated to principal and the balance to income.

(b) An amount received on account of an interest in water that is renewable must be allocated to income. If the water is not renewable, ninety percent of the amount must be allocated to principal and the balance to income.

(c) This chapter applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.

(d) If a trust owns an interest in minerals, water, or other natural resources on July 1, 2005, the trustee may allocate receipts from the interest as provided in this chapter or in the manner used by the trustee before July 1, 2005. If the trust acquires an interest in minerals, water, or other natural resources after July 1, 2005, the trustee shall allocate receipts from the interest as provided in this chapter.

Source: SL 2007, ch 282, § 21.
S.D. Codified Laws § 55-3-12 — SD Code / Title 55 / Chapter 3 / Section 55-3-12
Purchase by trustee of claims against trust property
Status: in_force

A trustee cannot enforce any claim against the trust property which he purchases after or in contemplation of his appointment as trustee; but he may be allowed by any competent court to charge to the trust property what he has in good faith paid for the claim, upon discharging the same.

Source: SDC 1939, § 59.0208.
S.D. Codified Laws § 55-3-29.2 — SD Code / Title 55 / Chapter 3 / Section 55-3-29.2
Statute of limitations defense not available
Status: in_force

No beneficiary of a trust may assert a statute of limitations defense in any proceeding to modify, reform, or terminate a trust pursuant to §§ 55-3-23 to 55-3-29 , inclusive.

Source: SL 2011, ch 212, § 12.
S.D. Codified Laws § 55-19-13 — SD Code / Title 55 / Chapter 19 / Section 55-19-13
Disclosure of other digital assets held in trust when trustee not original user
Status: in_force

Unless otherwise ordered by the court, directed by the user, or provided in a trust, a custodian shall disclose, to a trustee that is not an original user of an account, a catalogue of electronic communications sent or received by an original or successor user and stored, carried, or maintained by the custodian in an account of the trust and any digital assets, other than the content of electronic communications, in which the trust has a right or interest if the trustee gives the custodian:

(1) A written request for disclosure in physical or electronic form;

(2) A certified copy of the trust instrument or a certification of the trust pursuant to § 55-4-51 ;

(3) A certification by the trustee, under penalty of perjury, that the trust exists and the trustee is a currently acting trustee of the trust; and

(4) If requested by the custodian:

(a) A number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the trust's account; or

(b) Evidence linking the account to the trust.

Source: SL 2017, ch 209, § 13.
S.D. Codified Laws § 55-1A-32.1 — SD Code / Title 55 / Chapter 1A / Section 55-1A-32.1
Trustee immunity from liability for failure to prosecute, defend, or continue to defend
Status: in_force

If the trustee fails to prosecute, defend, or continue to defend the trust or its assets because the conditions set forth in subdivision 55-1A-32(1) or (2) have not been fulfilled, the trustee is not liable for any such failure even if the failure, including without limitation a withdrawal from a proceeding, may result in the granting or awarding of relief against the trustee or the trust, including without limitation a distribution of trust assets in satisfaction of a claim.

For purposes of chapter 55-1A , the term, prosecute, or, defend or continue to defend, means:

(1) Instituting, participating in, intervening in or defending a lawsuit, action in equity or administrative, arbitration or mediation proceeding (collectively a proceeding); or

(2) Taking any other action to resist such claim.

This section and § 55-1A-32 control unless the governing instrument specifically provides otherwise.

Source: SL 2017, ch 204, § 14.
S.D. Codified Laws § 55-12-23 — SD Code / Title 55 / Chapter 12 / Section 55-12-23
Restoration of misused money or property--Appointment of receiver
Status: in_force

The court may make any additional orders or judgments as may be necessary to restore to any person in interest any moneys or property, real or personal, that the court finds to have been misused. Additional relief may include the appointment of a receiver whenever it appears to the satisfaction of the court that the defendant threatens or is about to remove, conceal, or dispose of his property to the damage of persons to whom restoration would be made under this section.

Source: SL 2019, ch 210, § 6.
S.D. Codified Laws § 55-17-5 — SD Code / Title 55 / Chapter 17 / Section 55-17-5
Application of Internal Revenue Code--Special spousal property defined--Community property classified by another jurisdiction
Status: in_force

For purposes of the application of 26 U.S.C. § 1014(b)(6) (January 1, 2026), a South Dakota special spousal trust is a trust established under the community property laws of this state, as set forth in this chapter.

For purposes of this chapter, "special spousal property" means community property. Community property that is classified by a jurisdiction other than this state and transferred to a South Dakota special spousal trust retains its character as community property while in the trust. If the trust is revoked and property is transferred on revocation of the trust, the community property that is classified by a jurisdiction other than South Dakota retains its character as community property to the extent otherwise provided by the laws of this state.

Source: SL 2016, ch 231, § 33; SL 2026, ch 198, § 8.
S.D. Codified Laws § 55-8-8 — SD Code / Title 55 / Chapter 8 / Section 55-8-8
Assignment of security by fiduciary not the registered owner--Evidence of appointment or incumbency
Status: in_force

A corporation or transfer agent making a transfer pursuant to an assignment by a fiduciary who is not the registered owner shall obtain the following evidence of appointment or incumbency:

(1) In the case of a fiduciary appointed or qualified by a court, a certificate issued by or under the direction or supervision of that court or an officer thereof and dated within sixty days before the transfer; or

(2) In any other case, a copy of a document showing the appointment or a certificate issued by or on behalf of a person reasonably believed by the corporation or transfer agent to be responsible or, in the absence of such a document or certificate, other evidence reasonably deemed by the corporation or transfer agent to be appropriate. Corporations and transfer agents may adopt standards with respect to evidence of appointment or incumbency under this subdivision provided such standards are not manifestly unreasonable. Neither the corporation nor transfer agent is charged with notice of the contents of any document obtained pursuant to this subdivision (2) except to the extent that the contents relate directly to the appointment or incumbency.

Source: SL 1961, ch 22, § 4.
S.D. Codified Laws § 55-5-7 — SD Code / Title 55 / Chapter 5 / Section 55-5-7
Prudent investor rule
Status: in_force

No specific investment or course of action is, taken alone, prudent or imprudent. The trustee may invest in every kind of property and type of investment, subject to this chapter. The prudent investor rule is a test of conduct and not of resulting performance. The prudent investor rule may be expanded, restricted, eliminated, or otherwise altered by the terms of the trust instrument or court order. Unless expanded, restricted, eliminated, or otherwise altered by the terms of the trust instrument or a court order, the trustee's investment decisions and actions shall be judged in terms of the trustee's reasonable judgment regarding the anticipated effect on the trust portfolio as a whole under the facts and circumstances prevailing at the time of the decision or action. No trustee is liable to a beneficiary to the extent that the trustee acted in reliance on the provisions of the trust instrument or court order.

Source: SL 1995, ch 271, § 7; SL 2009, ch 252, § 30; SL 2010, ch 232, § 13.
S.D. Codified Laws § 55-10A-5 — SD Code / Title 55 / Chapter 10A / Section 55-10A-5
Transfer authorized by will or trust
Status: in_force

Any personal representative or trustee may make an irrevocable transfer pursuant to § 55-10A-9 , to a custodian for the benefit of a minor as authorized in the governing will or trust. If the testator or settlor has nominated a custodian under § 55-10A-3 , to receive the custodial property, the transfer must be made to that person. If the testator or settlor has not nominated a custodian under § 55-10A-3 , or all persons so nominated as custodian die before the transfer or are unable, decline or are ineligible to serve, the personal representative or the trustee, as the case may be, shall designate the custodian from among those eligible to serve as custodian for property of that kind under § 55-10A-9 .

Source: SL 1986, ch 409, § 5.
S.D. Codified Laws § 55-13A-602 — SD Code / Title 55 / Chapter 13A / Section 55-13A-602
Application of chapter to existing trusts and estates
Status: in_force

This chapter applies to every trust or will created after July 1, 2007, except as otherwise expressly provided in the will or the terms of the trust or in this chapter. No trust or decedent's estate based upon a will executed after July 1, 2007, may utilize the provisions of chapter 55-13 . Every trust existing on June 30, 2007, or any decedent's estate existing on June 30, 2007, and based upon a will executed prior to July 1, 2007, may elect to apply the provisions of either chapter 55-13 or this chapter. The election may be made by the trustee or personal representative upon providing sixty days written notice of the election to the beneficiaries of the trust or estate, as the case may be.

Any election made prior to July 1, 2008, is hereby ratified and remains in full force and effect.

The provisions of § 55-13A-409 as amended by SL 2009, ch 252, § 35 apply to a trust described in § 55-13A-409(d) on and after the following dates:

(1) If the trust is not funded as of July 1, 2009, the date of the decedent's death;

(2) If the trust is initially funded in the calendar year beginning January 1, 2010, the date of the decedent's death;

(3) If the trust is not described in subdivision (1) or (2), January 1, 2010.

Source: SL 2007, ch 282, § 33; SL 2008, ch 257, § 15; SL 2009, ch 252, § 37.
S.D. Codified Laws § 55-3-40 — SD Code / Title 55 / Chapter 3 / Section 55-3-40
Validity, construction, and administration of trust with state jurisdiction provision
Status: in_force

The validity, construction, and administration of a trust with a state jurisdiction provision are determined by the laws of this state, including the:

(1) Capacity of the trustor;

(2) Powers, obligations, liabilities, and rights of the trustees and the appointment and removal of the trustees; and

(3) Existence and extent of powers, conferred or retained, including a trustee's discretionary powers, and the validity of the exercise of a power.

Source: SL 1998, ch 282, § 21.
S.D. Codified Laws § 55-11-14 — SD Code / Title 55 / Chapter 11 / Section 55-11-14
Applicability of act to certain contracts
Status: in_force

The terms of each prearranged funeral trust contract in effect before July 1, 1986, is subject to chapter 55-11 in effect as it appeared in the 1980 revision and pocket parts of volume 15B of the South Dakota Codified Laws on June 30, 1986. All prearranged funeral trust contracts entered on or after July 1, 1986, are subject to this chapter.

Source: SL 1986, ch 408, § 12.
S.D. Codified Laws § 55-4-25 — SD Code / Title 55 / Chapter 4 / Section 55-4-25
Tort liability of trust estate--Action against trustee, amount of recovery, intervention by beneficiary
Status: in_force

Where a trustee or his predecessor has incurred personal liability for a tort committed in the course of his administration, the trustee in his representative capacity may be sued and collection had from the trust property, if the court shall determine in such action:

(1) that the tort was a common incident of the kind of business activity in which the trustee or his predecessor was properly engaged for the trust; or

(2) that, although the tort was not a common incident of such activity, neither the trustee nor his predecessor, nor any officer or employee of the trustee or his predecessor, was guilty of personal fault in incurring the liability; or

(3) that, although the tort did not fall within classes (1) or (2) above, it increased the value of the trust property.

If the tort is within classes (1) or (2) above, collection may be had of the full amount of damage proved; and if the tort is within class (3) above, collection may be had only to the extent of the increase in the value of the trust property.

Any beneficiary may intervene in such action and contest the right of the plaintiff to recover.

Source: SL 1943, ch 308, § 14; SDC Supp 1960, § 59.0514 (1), (3).
S.D. Codified Laws § 55-5-13 — SD Code / Title 55 / Chapter 5 / Section 55-5-13
Court authority over trustee
Status: in_force

Nothing in this chapter abrogates or restricts the power of an appropriate court in proper cases to direct or permit the trustee to deviate from the terms of the trust instrument or to direct or permit the trustee to take, or to restrain the trustee from taking, any action regarding the making or retention of investments.

Source: SL 1995, ch 271, § 13.
S.D. Codified Laws § 55-3-3 — SD Code / Title 55 / Chapter 3 / Section 55-3-3
Appointing court or public officer as trustor
Status: in_force

When a trustee is appointed by a court or public officer as a trustee, the court or officer is the trustor. A court may otherwise establish or create a trust and may act as the trustor of a trust.

Source: SDC 1939, § 59.0202; SL 2016, ch 231, § 19.
S.D. Codified Laws § 55-13A-103 — SD Code / Title 55 / Chapter 13A / Section 55-13A-103
Fiduciary duties--General principles
Status: in_force

(a) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of Articles 2 and 3, a fiduciary:

(1) Shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this chapter;

(2) May administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this chapter;

(3) Shall administer a trust or estate in accordance with this chapter if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration; and

(4) Shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this chapter do not provide a rule for allocating the receipt or disbursement to or between principal and income.

(b) In exercising the power to adjust under § 55-13A-104(a) or a discretionary power of administration regarding a matter within the scope of this chapter, whether granted by the terms of a trust, a will, or this chapter, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intention that the fiduciary shall or may favor one or more of the beneficiaries. A determination in accordance with this chapter is presumed to be fair and reasonable to all of the beneficiaries.

Source: SL 2007, ch 282, § 3.
S.D. Codified Laws § 55-12-14 — SD Code / Title 55 / Chapter 12 / Section 55-12-14
Representations in connection with sale of interment space as to speculative investment prohibited
Status: in_force

No organization subject to the provisions of this chapter nor any person representing it in a sales capacity shall advertise or represent, in connection with the sale or attempted sale of any interment space, that the same is or will be a desirable speculative investment for resale purposes.

Source: SL 1955, ch 97, § 12; SDC Supp 1960, § 11.19A10.
S.D. Codified Laws § 55-10A-17 — SD Code / Title 55 / Chapter 10A / Section 55-10A-17
Custodian's expenses, compensation, and bond
Status: in_force

A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties. Except for one who is a transferor under § 55-10A-4 , a custodian has a noncumulative election during each calendar year to charge reasonable compensation for services performed during that year. Except as provided in § 55-10A-20 , a custodian need not give a bond.

Source: SL 1986, ch 409, § 17.
S.D. Codified Laws § 55-1-2 — SD Code / Title 55 / Chapter 1 / Section 55-1-2
Trusts classified
Status: in_force

A trust is either express or implied.

Source: SDC 1939, § 59.0101.
S.D. Codified Laws § 55-2-5 — SD Code / Title 55 / Chapter 2 / Section 55-2-5
Trustee not to assume a trust adverse to the interest of beneficiary
Status: in_force

No trustee so long as he remains in the trust may undertake another trust adverse in its nature to the interest of his beneficiary in the subject of the trust without the consent of the latter.

Source: SDC 1939, § 59.0110.
S.D. Codified Laws § 55-2-20 — SD Code / Title 55 / Chapter 2 / Section 55-2-20
Impermissible use of power
Status: in_force

The power under § 55-2-15 may not be exercised to suspend the power to alienate trust property or extend the first trust beyond the permissible period of any rule against perpetuities applicable to the first trust.

Source: SL 2007, ch 281, § 6; SL 2011, ch 212, § 9.
S.D. Codified Laws § 55-16-10 — SD Code / Title 55 / Chapter 16 / Section 55-16-10
Claim of fraudulent transfer of settlor's assets--Requirements--Discovery--Transfer filing--Substantive rights
Status: in_force

A cause of action or claim for relief with respect to a fraudulent transfer of a settlor's assets under § 55-16-9 is extinguished unless the action under § 55-16-9 is brought by a creditor of the settlor who:

(1) Is a creditor of the settlor before the settlor's assets are transferred to the trust, and the action under § 55-16-9 is brought within the later of:

(a) Two years after the transfer is made; or

(b) Six months after the transfer is or reasonably could have been discovered by the creditor if the creditor:

(i) Can demonstrate that the creditor asserted a specific claim against the settlor before the transfer; or

(ii) Files another action, other than an action under § 55-16-9 , against the settlor that asserts a claim based on an act or omission of the settlor that occurred before the transfer, and the action described in this sub-subsection is filed within two years after the transfer; or

(2) Becomes a creditor subsequent to the transfer into trust, and the action under § 55-16-9 is brought within two years after the transfer is made.

In any action described in § 55-16-9 , the burden to prove the matter by clear and convincing evidence is upon the creditor.

A person is deemed to have discovered a transfer at the time a public record of the transfer is made, including the conveyance of an interest in real property, which is recorded in the appropriate public filing office where the property is located, the filing of a financing statement pursuant to chapter 57A-9 , or the filing of a bill of sale or other transfer instrument regarding personal property.

The filing of a bill of sale or other transfer instrument that conveys personal property to a trust governed by this chapter must be filed in an applicable public filing office.

If the transferor is a natural person and is a resident of this state, the personal property transfer instrument must be recorded in the county in this state where the transferor maintains the transferor's principal residence.

In all other cases, the personal property transfer instrument must be recorded in the county in this state where the trustee of the trust maintains a principal residence or principal place of business.

This section, §§ 55-16-9 , and 55-16-11 to 55-16-13 , inclusive, are inseparably interwoven with substantive rights, and a deprivation of legal rights would result if another jurisdiction's contrary laws and regulations are applied to a claim or cause of action described therein.

Source: SL 2005, ch 261, § 10; SL 2008, ch 257, § 17; SL 2012, ch 233, § 16; SL 2016, ch 231, § 24; SL 2017, ch 204, § 22; SL 2026, ch 198, § 7.
S.D. Codified Laws § 55-1A-17 — SD Code / Title 55 / Chapter 1A / Section 55-1A-17
Mineral and natural resource leases and explorations
Status: in_force

A trustee may enter into a lease or arrangement for the exploration for and removal of oil, gas and other minerals or other natural resources, and he may enter into pooling and unitization agreements.

Source: SL 1979, ch 336, § 17.
S.D. Codified Laws § 55-1-38 — SD Code / Title 55 / Chapter 1 / Section 55-1-38
Classification of distribution interest
Status: in_force

A distribution interest can be classified in three ways:

(1) As a mandatory interest, which is a distribution interest, in which the timing of any distribution must occur within one year from the date the right to the distribution arises, and the trustee has no discretion in determining whether a distribution shall be made or the amount of such distribution;

(2) As a support interest, which is not a mandatory interest but still contains mandatory language such as "shall make distributions" and is coupled with a standard capable of judicial interpretation; or

(3) As a discretionary interest, which is any interest where a trustee has any discretion to make or withhold a distribution.

A discretionary interest may be evidenced by permissive language such as "may make distributions" or it may be evidenced by mandatory distribution language that is negated by the discretionary language of the trust, such as "the trustee shall make distributions in the trustee's sole and absolute discretion." An interest that includes mandatory distribution language such as "shall" but is subsequently qualified by discretionary distribution language shall be classified as a discretionary interest and not as a support or a mandatory interest. A discretionary interest is any interest that is not a mandatory or a support interest.

Source: SL 2007, ch 280, § 15; SL 2008, ch 257, § 6; SL 2009, ch 252, § 7.
S.D. Codified Laws § 55-12-18 — SD Code / Title 55 / Chapter 12 / Section 55-12-18
Funds to be administered by trustee under control of licensed banking institution--Report to secretary of state
Status: in_force

If a perpetual care cemetery has more than three thousand people buried in the cemetery, the cemetery shall transfer all moneys from the perpetual care fund into the principal fund. The principal fund and the earnings fund of a perpetual cemetery shall be administered by an independent trustee and shall remain in the control of a licensed banking institution. No moneys may be taken out of the principal fund to pay for the costs of administering the funds. The principal fund and the earnings fund are open for public inspection. Each perpetual care cemetery shall submit a report to the secretary of state that includes the name and address of the licensed banking institution and the account numbers of the principal account and the earnings account by April 1, 2014.

Source: SL 2014, ch 228, § 6, eff. Mar. 28, 2014.
S.D. Codified Laws § 55-10A-25 — SD Code / Title 55 / Chapter 10A / Section 55-10A-25
Short title
Status: in_force

This chapter may be cited as the "South Dakota Uniform Transfers to Minors Act."

Source: SL 1986, ch 409, § 25.
S.D. Codified Laws § 55-1B-9 — SD Code / Title 55 / Chapter 1B / Section 55-1B-9
Investment, distribution, or tax trust advisor--Provided for in instrument
Status: in_force

A trust instrument governed by the laws of this state may provide for a person to act as an investment trust advisor, a distribution trust advisor, or a tax trust advisor, respectively, with regard to investment decisions, distribution decisions, or tax decisions, respectively. Unless otherwise provided or restricted by the terms of the governing instrument, any person may simultaneously serve as a trust advisor and a trust protector.

Source: SL 2005, ch 260, § 5; SL 2017, ch 204, § 16; SL 2025, ch 196, § 4.
S.D. Codified Laws § 55-3-17 — SD Code / Title 55 / Chapter 3 / Section 55-3-17
Discharge of trustee--Grounds
Status: in_force

A trustee can be discharged from his trust only as follows:

(1) By the extinction of the trust;

(2) By the completion of his duties under the trust;

(3) By such means as may be prescribed by the declaration of trust;

(4) By the consent of the beneficiary, if he has capacity to contract;

(5) By the judgment of a competent tribunal in a direct proceeding for that purpose that he is of unsound mind; or

(6) By the circuit court.

Source: SDC 1939, § 59.0218.
S.D. Codified Laws § 55-3-44 — SD Code / Title 55 / Chapter 3 / Section 55-3-44
Trustor defined
Status: in_force

For the purposes of § 55-3-40 , the term, trustor, means a person who transfers property in trust, and includes a person who furnishes the property transferred to a trust even if the trust is created by another person.

Source: SL 1998, ch 282, § 25.
S.D. Codified Laws § 55-4-24 — SD Code / Title 55 / Chapter 4 / Section 55-4-24
Liability of trustees of charitable trust for torts not changed by provisions of law as to exoneration or reimbursement of trustee for tort
Status: in_force

Nothing in § 55-4-22 or 55-4-23 shall be construed to change the existing law with regard to the liability of trustees of charitable trusts for torts of themselves or their employees.

Source: SL 1943, ch 308, § 13; SDC Supp 1960, § 59.0513 (3).
S.D. Codified Laws § 55-4-5 — SD Code / Title 55 / Chapter 4 / Section 55-4-5
Cotrustee--Liability for maladministration of trust
Status: in_force

Nothing in § 55-4-3 or 55-4-4 shall excuse a cotrustee from liability for inactivity in the administration of the trust nor for failure to attempt to prevent a breach of trust.

Source: SL 1943, ch 308, § 11; SDC Supp 1960, § 59.0511 (2).
S.D. Codified Laws § 55-8-18 — SD Code / Title 55 / Chapter 8 / Section 55-8-18
Citation of chapter
Status: in_force

This chapter may be cited as the Uniform Act for the Simplification of Fiduciary Security Transfers.

Source: SL 1961, ch 22, § 11.
S.D. Codified Laws § 55-9-2 — SD Code / Title 55 / Chapter 9 / Section 55-9-2
Validity of trust not affected by uncertainty or violation of rule against perpetuities--Disposal of property by trustee
Status: in_force

No such trust shall be invalid because of indefiniteness or uncertainty of the object of such trust or of the beneficiaries thereof designated in the instrument creating the same nor by reason of the same contravening any statute or rule against perpetuities, but no such trust shall be construed so as to prevent or limit the free alienation of the title to any of the trust estate by the trustee in the administration of said trust, except as may be permitted under existing or subsequent statutes.

Source: SL 1955, ch 429, § 2; SDC Supp 1960, § 59.0602.
S.D. Codified Laws § 55-1-51 — SD Code / Title 55 / Chapter 1 / Section 55-1-51
Applicability of §§55-1-46to55-1-50
Status: in_force

Sections 55-1-46 to 55-1-50 , inclusive, are effective for all trusts in existence on, created, amended, or restated after July 1, 2012.

Source: SL 2012, ch 233, § 13; SL 2013, ch 239, § 12.
S.D. Codified Laws § 55-12-8 — SD Code / Title 55 / Chapter 12 / Section 55-12-8
Income from cemetery principal fund--Transfer to earnings fund--Use
Status: in_force

The income from the cemetery principal fund may be transferred to an earnings fund established by the cemetery and may be used for the care and maintenance of the cemetery.

Source: SL 1955, ch 97, § 3; SDC Supp 1960, § 11.19A03; SL 2014, ch 228, § 4, eff. Mar. 28, 2014.
S.D. Codified Laws § 55-13A-402 — SD Code / Title 55 / Chapter 13A / Section 55-13A-402
Distribution from trust or estate
Status: in_force

A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, § 55-13A-401 or 55-13A-415 applies to a receipt from the trust.

Source: SL 2007, ch 282, § 12.
S.D. Codified Laws § 55-13-14 — SD Code / Title 55 / Chapter 13 / Section 55-13-14
Application of chapter
Status: in_force

Except as specifically provided in the trust instrument, the will or in this chapter, this chapter shall apply to any receipt or expense received or incurred on or after July 1, 1984 by any trust executed or the estate of any decedent dying on or after July 1, 1984.

Source: SL 1984, ch 323, § 14.
S.D. Codified Laws § 55-10A-15 — SD Code / Title 55 / Chapter 10A / Section 55-10A-15
Powers of custodian
Status: in_force

A custodian, acting in a custodial capacity, has all the rights, powers, and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers, and authority in that capacity only. This section does not relieve a custodian from liability for breach of § 55-10A-14 .

At any time, a custodian may transfer part or all of a custodial property to a qualified minor's trust without a court order. Such transfer terminates the custodianship to the extent of the transfer.

Source: SL 1986, ch 409, § 15; SL 2008, ch 257, § 14.
S.D. Codified Laws § 55-13-10 — SD Code / Title 55 / Chapter 13 / Section 55-13-10
Timber
Status: in_force

If any part of the principal consists of land from which merchantable timber may be removed, the receipts from taking the timber from the land shall be allocated in accordance with § 55-13-2(a)(3).

Source: SL 1984, ch 323, § 10.
S.D. Codified Laws § 55-8-1 — SD Code / Title 55 / Chapter 8 / Section 55-8-1
Definition of terms
Status: in_force

In this chapter, unless the context otherwise requires:

(1) "Assignment" includes any written stock power, bond power, bill of sale, deed, declaration of trust, or other instrument of transfer.

(2) "Claim of beneficial interest" includes a claim of any interest by a decedent's legatee, distributee, heir, or creditor, a beneficiary under a trust, a ward, a beneficial owner of a security registered in the name of a nominee or a minor owner of a security registered in the name of a custodian, or a claim of any similar interest, whether the claim is asserted by the claimant or by a fiduciary or by any other authorized person on his behalf, and includes a claim that the transfer would be in breach of fiduciary duties.

(3) "Corporation" means a private or public corporation, association or trust issuing a security.

(4) "Fiduciary" means a personal representative, trustee, guardian, committee, conservator, curator, tutor, custodian, or nominee.

(5) "Person" includes an individual, a corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, two or more persons having a joint or common interest, or any other legal or commercial entity.

(6) "Security" includes any share of stock, bond, debenture, note, or other security issued by a corporation which is registered as to ownership on the books of the corporation.

(7) "Transfer" means a change on the books of a corporation in the registered ownership of a security.

(8) "Transfer agent" means a person employed or authorized by a corporation to transfer securities issued by the corporation.

Source: SL 1961, ch 22, § 1.