S.D. Codified Laws § 55-2-4 — SD Code / Title 55 / Chapter 2 / Section 55-2-4
Trustee's influence not to be used for his advantage
Status: in_force

A trustee may not use the influence which his position gives him to obtain any advantage from his beneficiary.

Source: SDC 1939, § 59.0109.
S.D. Codified Laws § 55-16-8 — SD Code / Title 55 / Chapter 16 / Section 55-16-8
Powers and rights of transferor--Effect on qualified disposition
Status: in_force

A qualified disposition is subject to §§ 55-16-9 to 55-16-14 , inclusive, notwithstanding a transferor's retention of any or all of the powers and rights described in subdivision 55-16-2(2) and the transferor's service as trust advisor pursuant to § 55-16-5 . The transferor has only such powers and rights as are conferred by the trust instrument. Except as permitted by §§ 55-16-2 and 55-16-5 , a transferor has no rights or authority with respect to the property that is the subject of a qualified disposition or the income therefrom, and any agreement or understanding purporting to grant or permit the retention of any greater rights or authority is void.

Source: SL 2005, ch 261, § 8.
S.D. Codified Laws § 55-5-12 — SD Code / Title 55 / Chapter 5 / Section 55-5-12
Precedence of express provisions of trust instrument
Status: in_force

The provisions of this chapter may be expanded, restricted, eliminated, or otherwise altered by express provisions of the trust instrument. The trustee is not liable to a beneficiary for the trustee's reasonable and good faith reliance on those express provisions.

Source: SL 1995, ch 271, § 12.
S.D. Codified Laws § 55-11-3.1 — SD Code / Title 55 / Chapter 11 / Section 55-11-3.1
Clause required in contract not providing guaranteed price
Status: in_force

In addition to the requirements of § 55-11-3 , any contract entered into pursuant to § 55-11-1 , which does not provide for a guaranteed price for services or personal property to be delivered or performed pursuant to the terms of the contract, shall contain the following in twelve point bold type:

ANY FUNDS PAID UNDER THIS CONTRACT ARE ONLY A DEPOSIT TO BE APPLIED TOWARD THE FINAL COSTS OF THE SERVICES OR PERSONAL PROPERTY CONTRACTED FOR. ADDITIONAL CHARGES MAY BE REQUIRED.

Source: SL 1981, ch 355, § 4.
S.D. Codified Laws § 55-1B-2 — SD Code / Title 55 / Chapter 1B / Section 55-1B-2
Excluded fiduciary--Liability limits--Relief from obligations--Burden of proof against
Status: in_force

An excluded fiduciary is not liable, either individually or as a fiduciary, for any of the following:

(1) Any loss that results from compliance with a direction of the trust advisor, including any loss from the trust advisor breaching fiduciary responsibilities or acting beyond the trust advisor's scope of authority;

(2) Any loss that results from a failure to take any action proposed by an excluded fiduciary, which requires a prior authorization of the trust advisor, if that excluded fiduciary timely sought but failed to obtain the authorization;

(3) Any loss that results from any action or inaction, except for gross negligence or willful misconduct, when an excluded fiduciary is required, pursuant to the trust agreement or any other reason, to assume the role of trust advisor or trust protector;

(4) Any loss that results from relying upon any trust advisor for valuation of trust assets; or

(5) Any loss that results from any tax filing made or tax position taken based on the recommendations or instructions received from the tax trust advisor or from a tax preparer or professional used by the excluded fiduciary at the direction of the grantor, the tax trust advisor, or another trust fiduciary.

Any excluded fiduciary is also relieved from any obligation to independently value trust assets; to review or evaluate any direction from a distribution trust advisor; to perform investment or suitability reviews, inquiries, or investigations; or to make recommendations or evaluations with respect to any investments to the extent the trust advisor had authority to direct the acquisition, disposition, or retention of the investment. If the excluded fiduciary offers such communication to the trust advisor, trust protector, or any investment person selected by the investment trust advisor, such action does not constitute an undertaking by the excluded fiduciary to monitor or otherwise participate in actions within the scope of the advisor's authority or to constitute any duty to do so.

Any excluded fiduciary is also relieved of any duty to communicate with or warn or apprise any beneficiary or third party concerning instances in which the excluded fiduciary would or might have exercised the excluded fiduciary's own discretion in a manner different from the manner directed by the trust advisor or trust protector.

Absent contrary provisions in the governing instrument, the actions of the excluded fiduciary (such as any communications with the trust advisor and others and carrying out, recording, and reporting actions taken at the trust advisor's direction) pertaining to matters within the scope of authority of the trust advisor or trust protector constitute administrative actions taken by the excluded fiduciary solely to allow the excluded fiduciary to perform those duties assigned to the excluded fiduciary under the governing instrument, and such administrative actions do not constitute an undertaking by the excluded fiduciary to monitor, participate, or otherwise take any fiduciary responsibility for actions within the scope of authority of the trust advisor or trust protector.

Nothing in subdivision (2) imposes an obligation or liability with respect to a custodian of a custodial account.

In an action against an excluded fiduciary pursuant to the provisions of this section, the burden to prove the matter by clear and convincing evidence is on the person seeking to hold the excluded fiduciary liable.

Source: SL 1997, ch 280, § 2; SL 2006, ch 248, § 2; SL 2009, ch 252, § 13; SL 2011, ch 212, § 1; SL 2012, ch 233, § 5; SL 2016, ch 231, § 16; SL 2018, ch 275, § 23; SL 2020, ch 206, § 7; SL 2021, ch 207, § 15; SL 2025, ch 196, § 2.
S.D. Codified Laws § 55-1-45 — SD Code / Title 55 / Chapter 1 / Section 55-1-45
Limitation of action for fraudulent transfer of settlor's assets
Status: in_force

A cause of action or claim for relief with respect to a fraudulent transfer of a settlor's assets pursuant to § 55-1-44 is extinguished unless the action under § 55-1-44 is brought by a creditor of the settlor who meets one of the following requirements:

(1) Is a creditor of the settlor before the settlor's assets are transferred to the trust, and the action under § 55-1-44 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 § 55-1-44 , 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 subsection is filed within two years after the transfer; or

(2) Becomes a creditor subsequent to the transfer into trust, and the action under § 55-1-44 is brought within two years after the transfer is made.

Source: SL 2011, ch 212, § 37; SL 2013, ch 239, § 23; SL 2020, ch 206, § 6.
S.D. Codified Laws § 55-1A-40 — SD Code / Title 55 / Chapter 1A / Section 55-1A-40
Trust name change
Status: in_force

A trustee may change the name of an irrevocable trust if the trustee deems such action to be in the best interests of the trust and its beneficiaries.

Source: SL 2011, ch 212, § 13.
S.D. Codified Laws § 55-9-9 — SD Code / Title 55 / Chapter 9 / Section 55-9-9
Distributions required to avoid taxes
Status: in_force

The trustee of a trust described in § 55-9-7 shall distribute for each taxable year of the trust, amounts at least sufficient to avoid liability for the tax imposed by section 4942 (a) of the Internal Revenue Code.

Source: SL 1972, ch 259, § 2 (1).
S.D. Codified Laws § 55-4-35 — SD Code / Title 55 / Chapter 4 / Section 55-4-35
Uniformity of interpretation
Status: in_force

This chapter shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.

Source: SL 1943, ch 308, § 21; SDC Supp 1960, § 59.0521.
S.D. Codified Laws § 55-18-18 — SD Code / Title 55 / Chapter 18 / Section 55-18-18
Compensation of representative
Status: in_force

A representative is entitled to reasonable compensation as determined by the trustee except as otherwise provided in the governing instrument.

Source: SL 2017, ch 208, § 18.
S.D. Codified Laws § 55-16-2 — SD Code / Title 55 / Chapter 16 / Section 55-16-2
Trust instrument defined
Status: in_force

For the purposes of this chapter, a trust instrument, is an instrument appointing a qualified person or qualified persons for the property that is the subject of a disposition, which instrument:

(1) Expressly incorporates the law of this state to govern the validity, construction, and administration of the trust;

(2) Is irrevocable, but a trust instrument may not be deemed revocable on account of its inclusion of one or more of the following:

(a) A transferor's power to veto a distribution from the trust;

(b) An inter vivos power of appointment, other than an inter vivos power exercisable solely by the transferor in favor of the transferor, the transferor's creditors, the transferor's estate, or the creditors of the transferor's estate;

(c) A testamentary power of appointment;

(d) The transferor's potential or actual receipt of income, including rights to such income retained in the trust instrument;

(e) The transferor's potential or actual receipt of income or principal from a charitable remainder unitrust or charitable remainder annuity trust as such terms are defined in § 664 of the Internal Revenue Code of 1986, 26 U.S.C. § 664, as of January 1, 2009;

(f) The transferor's receipt each year of a percentage of the value as determined from time to time pursuant to the trust instrument, but not exceeding the amount that may be defined as income under § 643(b) of the Internal Revenue Code of 1986, 26 U.S.C. § 643(b), as of January 1, 2009;

(g) The transferor's potential or actual receipt or use of principal if the potential or actual receipt or use of principal would be the result of a qualified person, including a qualified person acting at the direction of a trust advisor described in this section, acting either in the qualified person's sole discretion or pursuant to an ascertainable standard contained in the trust instrument;

(h) The transferor's right to remove a trustee, protector, or trust advisor and to appoint a new trustee, protector, or trust advisor, other than a trustee who is a related or subordinate party with respect to the transferor within the meaning of § 672(c) of the Internal Revenue Code of 1986, 26 U.S.C. § 672(c), as of January 1, 2009;

(i) The transferor's potential or actual use of real property held under a qualified personal residence trust within the meaning of such term as described in the regulations promulgated under § 2702(c) of the Internal Revenue Code of 1986, 26 U.S.C. § 2702(c), as of January 1, 2009;

(j) A pour back provision that pours back to the transferor's will or revocable trust all or part of the trust assets;

(k) The transferor's potential or actual receipt of income or principal to pay, in whole or in part, income taxes due on income of the trust if the potential or actual receipt of income or principal is pursuant to a provision in the trust instrument that expressly provides for the payment of the taxes and if the potential or actual receipt of income or principal would be the result of a qualified person's acting in the qualified person's discretion or pursuant to a mandatory direction in the trust instrument or acting at the direction of an advisor described in § 55-16-4 ;

(l) The ability, whether pursuant to discretion, direction, or the grantor's exercise of a testamentary power of appointment, of a qualified person to pay, after the death of the transferor, all or any part of the debts of the transferor outstanding at the time of the transferor's death, the expenses of administering the transferor's estate, or any estate or inheritance tax imposed on or with respect to the transferor's estate;

(m) A transferor's service as a noncontrolling member of a distribution committee that functions as a distribution trust advisor, as defined in subdivision 55-1B-1 (7); or

(n) A transferor's enjoyment of a power to reacquire the trust corpus by substituting other property of an equivalent value within the meaning of § 675(4)(C) of the Internal Revenue Code of 1986, 26 U.S.C. § 675(4)(C), as of January 1, 2021; and

(3) Provides that the interest of the transferor or other beneficiary in the trust property or the income from the trust property may not be transferred, assigned, pledged, or mortgaged, whether voluntarily or involuntarily, before the qualified person distributes the property or income from the property to the beneficiary, and such provision of the trust instrument constitutes a restriction on the transfer of the transferor's beneficial interest in the trust that is enforceable under applicable nonbankruptcy law within the meaning of § 541(c)(2) of the Bankruptcy Code, 11 U.S.C. § 541(c)(2), as of January 1, 2009.

A disposition by a trustee that is not a qualified person to a trustee that is a qualified person may not be treated as other than a qualified disposition solely because the trust instrument fails to meet the requirements of subdivision (1) of this section.

Source: SL 2005, ch 261, § 2; SL 2007, ch 247, § 11; SL 2009, ch 252, § 41; SL 2012, ch 233, § 19; SL 2013, ch 239, § 18; SL 2014, ch 226, § 22; SL 2020, ch 206, § 16; SL 2021, ch 207, § 16.
S.D. Codified Laws § 55-6-4 — SD Code / Title 55 / Chapter 6 / Section 55-6-4
Application of chapter
Status: in_force

This chapter shall apply to fiduciary relationships in existence at the time this chapter takes effect or thereafter established.

Source: SL 1941, ch 20, § 7; SDC Supp 1960, § 6.0904.
S.D. Codified Laws § 55-15-13 — SD Code / Title 55 / Chapter 15 / Section 55-15-13
Trustee acting in good faith not liable--Remedy
Status: in_force

Any trustee or disinterested person who in good faith takes or fails to take any action under this chapter is not liable to any person affected by such action or inaction, regardless of whether such person received written notice as provided in this chapter and regardless of whether such person was under a legal disability at the time of the delivery of such notice. Such person's exclusive remedy shall be to obtain an order of the court directing the trustee to convert an income trust to a total return unitrust, to reconvert from a total return unitrust to an income trust or to change the percentage used to calculate the unitrust amount.

Source: SL 2002, ch 225, § 13.
S.D. Codified Laws § 55-13-15 — SD Code / Title 55 / Chapter 13 / Section 55-13-15
Uniformity of interpretation
Status: in_force

This chapter shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it.

Source: SL 1984, ch 323, § 15.
S.D. Codified Laws § 55-12-1 — SD Code / Title 55 / Chapter 12 / Section 55-12-1
Cemeteries subject to provisions of chapter
Status: in_force

Any persons, firms, or corporations or other forms of organization organized or engaging in the business under the laws of the State of South Dakota, or wheresoever organized and engaging in the business in the State of South Dakota, of the ownership, maintenance or operation of a cemetery, providing lots or other interment space therein for the remains of human bodies, except such organizations which are churches or religious or established fraternal societies, or municipalities or other political subdivisions of the State of South Dakota owning, maintaining or operating cemeteries, or persons, firms, or corporations owning and operating cemeteries which have been in existence more than five years prior to February 28, 1955 shall be subject to the provisions of this chapter.

Source: SL 1955, ch 97, § 1; SDC Supp 1960, § 11.19A01; SL 1992, ch 60, § 2.
S.D. Codified Laws § 55-7-14 — SD Code / Title 55 / Chapter 7 / Section 55-7-14
Uniformity of interpretation
Status: in_force

Sections 55-7-2 to 55-7-15 , inclusive, shall be so interpreted and construed as to effectuate their general purpose to make uniform the law of those states which enact them.

Source: SL 1943, ch 19, § 13; SDC Supp 1960, § 6.0713.
S.D. Codified Laws § 55-12-24 — SD Code / Title 55 / Chapter 12 / Section 55-12-24
Authority of receiver
Status: in_force

If a receiver is appointed by the court, the receiver may collect, receive, and take into the receiver's possession all the goods and chattels, rights and credits, moneys and effects, land and tenements, books, records, documents, papers, choses in action, bills, notes, and property of every description. If any property has been commingled and the property cannot be identified because of the commingling, the receiver may sell, convey, and assign the property and hold and dispose of any proceeds under the direction of the court.

Source: SL 2019, ch 210, § 7.
S.D. Codified Laws § 55-13A-412 — SD Code / Title 55 / Chapter 13A / Section 55-13A-412
Timber
Status: in_force

(a) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts:

(1) To income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;

(2) To principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;

(3) To or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in paragraphs (1) and (2); or

(4) To principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to paragraph (1), (2), or (3).

(b) In determining net receipts to be allocated pursuant to subsection (a), a trustee shall deduct and transfer to principal a reasonable amount for depletion.

(c) This chapter applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.

(d) If a trust owns an interest in timberland on July 1, 2005, the trustee may allocate net receipts from the sale of timber and related products as provided in this chapter or in the manner used by the trustee before July 1, 2005. If the trust acquires an interest in timberland after July 1, 2005, the trustee shall allocate net receipts from the sale of timber and related products as provided in this chapter.

Source: SL 2007, ch 282, § 22.
S.D. Codified Laws § 55-12-16 — SD Code / Title 55 / Chapter 12 / Section 55-12-16
Severability of provisions
Status: in_force

If any provision hereof or the application thereof to any person or circumstances is held invalid, such invalidity shall 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 declared to be severable.

Source: SL 1955, ch 97, § 11; SDC Supp 1960, § 11.19A09.
S.D. Codified Laws § 55-13A-403 — SD Code / Title 55 / Chapter 13A / Section 55-13A-403
Business and other activities conducted by trustee
Status: in_force

(a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.

(b) A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.

(c) Activities for which a trustee may maintain separate accounting records include:

(1) Retail, manufacturing, service, and other traditional business activities;

(2) Farming;

(3) Raising and selling livestock and other animals;

(4) Management of rental properties;

(5) Extraction of minerals and other natural resources;

(6) Timber operations; and

(7) Activities to which § 55-13A-414 applies.

Source: SL 2007, ch 282, § 13.
S.D. Codified Laws § 55-13A-406 — SD Code / Title 55 / Chapter 13A / Section 55-13A-406
Obligation to pay money
Status: in_force

(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium.

(b) A trustee shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within one year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income.

(c) This section does not apply to an obligation to which § 55-13A-409 , 55-13A-410 , 55-13A-411 , 55-13A-412 , 55-13A-414 , or 55-13A-415 applies.

Source: SL 2007, ch 282, § 16.
S.D. Codified Laws § 55-11-2 — SD Code / Title 55 / Chapter 11 / Section 55-11-2
Deposit of trust fund in banking institution or association--Violation as misdemeanor
Status: in_force

Within ten days after receipt, the person holding money in trust under § 55-11-1 shall deposit it in a banking institution, or place the money in an account in a savings and loan association, or a federal credit union organized under the laws of this state or of the United States of America, provided, however, such institutions are domiciled in the state of South Dakota, and the deposits or accounts of which banking institution, federal credit union or association are guaranteed by the federal government or insured by an instrumentality of the federal government. The money shall be carried in a trust account in the name of the depositor as trustee for the person who will receive the benefit of the property and services upon his death. Any person intentionally violating the provisions of this section is guilty of a Class 1 misdemeanor.

Source: SL 1953, ch 496, §§ 2, 4; SDC Supp 1960, §§ 27.1410, 27.9954; SL 1967, ch 104, § 2; SL 1980, ch 24, § 109; SL 1986, ch 408, § 2.
S.D. Codified Laws § 55-1-5 — SD Code / Title 55 / Chapter 1 / Section 55-1-5
Express trust created as to trustee--Words and acts of trustee
Status: in_force

An express trust is created as to the trustee by any words or acts of his, indicating with reasonable certainty:

(1) His acceptance of the trust or his acknowledgment, made upon sufficient consideration, of its existence; and

(2) The subject, purpose, and beneficiary thereof.

Source: SDC 1939, § 59.0105.
S.D. Codified Laws § 55-3-47 — SD Code / Title 55 / Chapter 3 / Section 55-3-47
Cessation of trustee upon action of foreign court--Successor trustee
Status: in_force

If, in any action brought against a trustee of a trust, a foreign court takes any action whereby such court declines to apply the law of this state in determining the validity, construction, or administration of such trust, or the effect of a spendthrift provision thereof, the trustee shall immediately upon the foreign court's action and without the further order of any court of this state, cease in all respects to be trustee of the trust and a successor trustee shall thereupon succeed as trustee in accordance with the terms of the trust instrument or, if the trust instrument does not provide for a successor trustee and the trust would otherwise be without a trustee, the court, upon the application of any beneficiary of the trust, shall appoint a successor trustee upon such terms and conditions as it determines to be consistent with the purposes of the trust and this section. Upon the trustee's ceasing to be trustee, the trustee has no power or authority other than to convey the trust property to the successor trustee named in the trust instrument in accordance with this section.

Source: SL 2006, ch 243, § 10.
S.D. Codified Laws § 55-19-21 — SD Code / Title 55 / Chapter 19 / Section 55-19-21
Disclosure of information by custodian to fiduciary
Status: in_force

A custodian may disclose information in an account to a fiduciary of the user when the information is required to terminate an account used to access digital assets licensed to the user.

Source: SL 2017, ch 209, § 21.
S.D. Codified Laws § 55-18-26 — SD Code / Title 55 / Chapter 18 / Section 55-18-26
Liability of fiduciary
Status: in_force

No fiduciary is liable for reliance on the outcome or resolution of any proceeding conducted under this chapter, unless the fiduciary knowingly disregarded the lack of a representative's authority to act with regard to the matter in question.

Source: SL 2017, ch 208, § 26.
S.D. Codified Laws § 55-3-49 — SD Code / Title 55 / Chapter 3 / Section 55-3-49
Enforcement of foreign judgments
Status: in_force

Notwithstanding any other provision of law, no judgment, decree, or order of a court of the United States, a court of a state other than this state, or any other court, shall be enforced against any trust governed by the laws of this state, or any disposition of property to be held upon the terms of any such trust, unless a court in this state first determines that the time, manner, and mechanism for enforcing the judgment is consistent with the restrictions and limitations imposed under the terms of the trust and by the laws of this state on the enforcement of the claims of any creditor, including the restrictions and limitations imposed under this chapter, chapter 55-1 , and chapter 55-1 6.

Source: SL 2021, ch 207, § 7.
S.D. Codified Laws § 55-13A-104 — SD Code / Title 55 / Chapter 13A / Section 55-13A-104
Trustee's power to adjust
Status: in_force

(a) A trustee may adjust between principal and income to the extent the trustee considers necessary if the trustee invests and manages trust assets as a prudent investor, the terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust's income, and the trustee determines, after applying the rules in § 55-13A-103(a), that the trustee is unable to comply with § 55-13A-103(b).

(b) In deciding whether and to what extent to exercise the power conferred by subsection (a), a trustee shall consider all factors relevant to the trust and its beneficiaries, including the following factors to the extent they are relevant:

(1) The nature, purpose, and expected duration of the trust;

(2) The intent of the settlor;

(3) The identity and circumstances of the beneficiaries;

(4) The needs for liquidity, regularity of income, and preservation and appreciation of capital;

(5) The assets held in the trust; the extent to which they consist of financial assets, interests in closely held enterprises, tangible and intangible personal property, or real property; the extent to which an asset is used by a beneficiary; and whether an asset was purchased by the trustee or received from the settlor;

(6) The net amount allocated to income under the other sections of this chapter and the increase or decrease in the value of the principal assets, which the trustee may estimate as to assets for which market values are not readily available;

(7) Whether and to what extent the terms of the trust give the trustee the power to invade principal or accumulate income or prohibit the trustee from invading principal or accumulating income, and the extent to which the trustee has exercised a power from time to time to invade principal or accumulate income;

(8) The actual and anticipated effect of economic conditions on principal and income and effects of inflation and deflation; and

(9) The anticipated tax consequences of an adjustment.

(c) A trustee may not make an adjustment:

(1) That diminishes the income interest in a trust that requires all of the income to be paid at least annually to a spouse and for which an estate tax or gift tax marital deduction would be allowed, in whole or in part, if the trustee did not have the power to make the adjustment;

(2) That reduces the actuarial value of the income interest in a trust to which a person transfers property with the intent to qualify for a gift tax exclusion;

(3) That changes the amount payable to a beneficiary as a fixed annuity or a fixed fraction of the value of the trust assets;

(4) From any amount that is permanently set aside for charitable purposes under a will or the terms of a trust unless both income and principal are so set aside;

(5) If possessing or exercising the power to make an adjustment causes an individual to be treated as the owner of all or part of the trust for income tax purposes, and the individual would not be treated as the owner if the trustee did not possess the power to make an adjustment;

(6) If possessing or exercising the power to make an adjustment causes all or part of the trust assets to be included for estate tax purposes in the estate of an individual who has the power to remove a trustee or appoint a trustee, or both, and the assets would not be included in the estate of the individual if the trustee did not possess the power to make an adjustment;

(7) If the trustee is a beneficiary of the trust; or

(8) If the trustee is not a beneficiary, but the adjustment would benefit the trustee directly or indirectly.

(d) If subsection (c)(5), (6), (7), or (8) applies to a trustee and there is more than one trustee, a cotrustee to whom the provision does not apply may make the adjustment unless the exercise of the power by the remaining trustee or trustees is not permitted by the terms of the trust.

(e) A trustee may release the entire power conferred by subsection (a) or may release only the power to adjust from income to principal or the power to adjust from principal to income if the trustee is uncertain about whether possessing or exercising the power will cause a result described in subsection (c)(1) through (6) or (c)(8) or if the trustee determines that possessing or exercising the power will or may deprive the trust of a tax benefit or impose a tax burden not described in subsection (c). The release may be permanent or for a specified period, including a period measured by the life of an individual.

(f) Terms of a trust that limit the power of a trustee to make an adjustment between principal and income do not affect the application of this section unless it is clear from the terms of the trust that the terms are intended to deny the trustee the power of adjustment conferred by subsection (a).

(g) Unless prohibited by the governing instrument, the trustee of a trust has the power to consider gains from the sale of capital assets in the trust to be part of a distribution of principal to a beneficiary, or part of an adjustment from principal to income, and if such power is exercised, such gains shall be treated consistently by the trustee on the trust's books, records, and tax returns as part of a distribution to a beneficiary.

Source: SL 2007, ch 282, § 4; SL 2009, ch 252, § 33.
S.D. Codified Laws § 55-1A-18 — SD Code / Title 55 / Chapter 1A / Section 55-1A-18
Insurance
Status: in_force

A trustee may insure the assets of his trust against damage or loss, and the trustee against liability to third persons.

Source: SL 1979, ch 336, § 18.
S.D. Codified Laws § 55-4-51.1 — SD Code / Title 55 / Chapter 4 / Section 55-4-51.1
Recording of certificate of trust--Reliance upon content
Status: in_force

A certificate of trust executed under § 55-4-51 may be recorded in the office of the register of deeds with respect to land described in the certificate of trust or any attachment to it. If it is recorded or filed in any county where real property is situated, or in the case of personal property, if it is presented to a third party, the certificate of trust serves to document the existence of the trust, the identity of the trustees, the powers of the trustees, and any limitations on those powers, and other matters the certificate of trust sets out, as though the full trust instrument had been recorded, filed, or presented. Until amended or revoked, or until the full trust instrument or will is recorded, filed, or presented, a certificate of trust is conclusive proof as to the matters contained in it and any party may rely upon the certificate, except a party who has actual knowledge of the facts to the contrary.

Source: SL 2010, ch 232, § 8; SL 2019, ch 209, § 7.
S.D. Codified Laws § 55-1-10 — SD Code / Title 55 / Chapter 1 / Section 55-1-10
Transfer of real property to one for money paid by another--Trust presumed
Status: in_force

When a transfer of real property is made to one person and the consideration therefor is paid by or for another, a trust is presumed to result in favor of the person by or for whom such payment is made.

Source: SDC 1939, § 59.0102 (4).
S.D. Codified Laws § 55-4-23 — SD Code / Title 55 / Chapter 4 / Section 55-4-23
Exoneration or reimbursement of trustee for tort--Increase in value of trust property
Status: in_force

If a trustee commits a tort which increases the value of the trust property, he shall be entitled to exoneration or reimbursement with respect thereto to the extent of such increase in value, even though he would not otherwise be entitled to exoneration or reimbursement.

Source: SL 1943, ch 308, § 13; SDC Supp 1960, § 59.0513 (2).
S.D. Codified Laws § 55-8-17 — SD Code / Title 55 / Chapter 8 / Section 55-8-17
Uniformity of interpretation
Status: in_force

This chapter shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it.

Source: SL 1961, ch 22, § 10.
S.D. Codified Laws § 55-1B-11 — SD Code / Title 55 / Chapter 1B / Section 55-1B-11
Powers and discretions of distribution trust advisor
Status: in_force

The powers and discretions of a distribution trust advisor over any discretionary distributions of income or principal, including distributions pursuant to an ascertainable standard or other criteria and appointments pursuant to § 55-2-15 , shall be provided in the trust instrument and may be exercised or not exercised, in the best interests of the trust, in the sole and absolute discretion of the distribution trust advisor and are binding on any other person and any other interested party, fiduciary, and excluded fiduciary. Unless the terms of the governing instrument provide otherwise, then, in addition to the powers and discretions granted to the distribution trust advisor in the trust instrument, the distribution trust advisor shall direct the trustee with regard to all discretionary distributions to beneficiaries, may direct appointments pursuant to § 55-2-15 , and may exercise any of the powers and discretions granted to a distribution trust advisor in § 55-2-13 .

Source: SL 2005, ch 260, § 7; SL 2009, ch 252, § 15; SL 2011, ch 212, § 5; SL 2012, ch 233, § 7; SL 2020, ch 206, § 10.
S.D. Codified Laws § 55-8-6 — SD Code / Title 55 / Chapter 8 / Section 55-8-6
Assignment of security by fiduciary--Compliance with controlling instrument and law governing fiduciary relationship assumed
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 fiduciary has complied with any controlling instrument and with the law of the jurisdiction governing the fiduciary relationship, including any law requiring the fiduciary to obtain court approval of the transfer.

Source: SL 1961, ch 22, § 3 (2).
S.D. Codified Laws § 55-16-7 — SD Code / Title 55 / Chapter 16 / Section 55-16-7
Disposition to more than one trustee--Qualified disposition even if all trustees are not qualified persons
Status: in_force

In the case of a disposition to more than one trustee, a disposition that is otherwise a qualified disposition may not be treated as other than a qualified disposition solely because not all of the trustees are qualified persons.

Source: SL 2005, ch 261, § 7.
S.D. Codified Laws § 55-1-22.3 — SD Code / Title 55 / Chapter 1 / Section 55-1-22.3
Spendthrift provision in hybrid purpose trust--Qualified dispositions in trust
Status: in_force

A hybrid purpose trust may:

(1) Contain a spendthrift provision; and

(2) Also qualify as a trust described in § 55-16-2 .

Source: SL 2018, ch 275, § 17.
S.D. Codified Laws § 55-19-11 — SD Code / Title 55 / Chapter 19 / Section 55-19-11
Disclosure of digital assets held in trust when trustee is original user
Status: in_force

Unless otherwise ordered by the court or provided in a trust, a custodian shall disclose to a trustee that is an original user of an account any digital asset of the account held in trust, including a catalogue of electronic communications of the trustee and the content of electronic communications.

Source: SL 2017, ch 209, § 11.
S.D. Codified Laws § 55-6-1 — SD Code / Title 55 / Chapter 6 / Section 55-6-1
Establishment and maintenance of common trust funds and collective investment funds--Purpose
Status: in_force

Any bank or trust company qualified to act as fiduciary in this state may establish common trust funds or collective investment funds for the purpose of furnishing investments to itself as fiduciary, or to itself and others, as cofiduciaries.

Any common trust fund or collective investment fund authorized by this chapter shall be established and maintained in accordance with 12 C.F.R. 9.18 as of January 1, 2011.

Source: SL 1941, ch 20, § 1; SDC Supp 1960, § 6.0901; SL 2011, ch 212, § 23.
S.D. Codified Laws § 55-8-12 — SD Code / Title 55 / Chapter 8 / Section 55-8-12
Nonliability of corporation or transfer agent for authorized acts
Status: in_force

A corporation or transfer agent incurs no liability to any person by making a transfer or otherwise acting in a manner authorized by this chapter.

Source: SL 1961, ch 22, § 6.
S.D. Codified Laws § 55-1-6 — SD Code / Title 55 / Chapter 1 / Section 55-1-6
Implied trust--Definition--Creation
Status: in_force

An implied trust is one which is created by operation of law. An implied trust arises in the cases described in §§ 55-1-7 to 55-1-10 , inclusive.

Source: SDC 1939, §§ 59.0101, 59.0102.
S.D. Codified Laws § 55-7-12 — SD Code / Title 55 / Chapter 7 / Section 55-7-12
Law governing transactions not within Uniform Fiduciaries Act
Status: in_force

In any case not provided for in §§ 55-7-2 to 55-7-15 , inclusive, the rules of law and equity, including the law merchant and those rules of law and equity relating to trusts, agency, negotiable instruments and banking, shall continue to apply.

Source: SL 1943, ch 19, § 12; SDC Supp 1960, § 6.0712.
S.D. Codified Laws § 55-1-52 — SD Code / Title 55 / Chapter 1 / Section 55-1-52
Interest on general pecuniary devises
Status: in_force

General pecuniary devises bear interest at the Category B rate of interest as provided in § 54-3-16 beginning one year after the event requiring a distribution until payment, unless a contrary intent is indicated by the terms of the trust.

Source: SL 2013, ch 239, § 15.
S.D. Codified Laws § 55-1B-6 — SD Code / Title 55 / Chapter 1B / Section 55-1B-6
Powers and discretions of trust protector
Status: in_force

The powers and discretions of a trust protector are as provided in the governing instrument and may be exercised or not exercised, in the best interests of the trust, in the sole and absolute discretion of the trust protector and are binding on all other persons. The powers and discretion may include the following:

(1) Modify or amend the trust instrument to achieve favorable tax status or respond to changes in the Internal Revenue Code, state law, or the rulings and regulations thereunder;

(2) Increase or decrease the interests of any beneficiaries to the trust;

(3) Modify the terms of any power of appointment granted by the trust. However, a modification or amendment may not grant a beneficial interest to any individual or class of individuals not specifically provided for under the trust instrument;

(4) Remove and appoint a trustee, a fiduciary provided for in the governing trust instrument, trust advisor, investment committee member, or distribution committee member;

(5) Terminate the trust;

(6) Veto or direct trust distributions;

(7) Change situs or governing law of the trust, or both;

(8) Appoint a successor trust protector;

(9) Interpret terms of the trust instrument at the request of the trustee;

(10) Advise the trustee on matters concerning a beneficiary;

(11) Amend or modify the trust instrument to take advantage of laws governing restraints on alienation, distribution of trust property, or the administration of the trust;

(12) Reserved;

(13) Add to the trust an individual beneficiary or beneficiaries from a class of individuals identified in the governing instrument;

(14) Add to the trust a charitable beneficiary or beneficiaries from a class of charities identified in the trust instrument;

(15) Provide other powers and discretions in the governing instrument;

(16) Remove a representative as provided in subdivision 55-18-4 (3);

(17) Appoint a representative as provided in subdivision 55-18-9 (12); and

(18) Act as a representative as provided in subdivision 55-18-9 (11).

In addition to the powers and discretions granted to the trust protector in the governing instrument, the trust protector may also exercise any of the powers and discretions granted to a trust protector under § 55-2-13 to the extent such exercise is not prohibited under the terms of the governing instrument.

The powers referenced in subdivisions (5), (6), and (11) may be granted notwithstanding the provisions of §§ 55-3-24 to 55-3-28 , inclusive.

Source: SL 1997, ch 280, § 6; SL 2005, ch 260, § 3; SL 2009, ch 252, § 14; SL 2013, ch 239, § 20; SL 2016, ch 231, § 17; SL 2017, ch 208, § 29; SL 2020, ch 206, § 8.
S.D. Codified Laws § 55-1-35 — SD Code / Title 55 / Chapter 1 / Section 55-1-35
Trust declaration that beneficiary's interest subject to spendthrift trust--Payment of beneficiary expenses
Status: in_force

A declaration in a trust that the interest of a beneficiary shall be held subject to a spendthrift trust is sufficient to restrain voluntary or involuntary alienation of a beneficial interest by a beneficiary to the maximum extent provided by law. Regardless of whether a beneficiary has any outstanding creditor, a trustee of a spendthrift trust may directly pay any expense on behalf of such beneficiary and may exhaust the income and principal of the trust for the benefit of such beneficiary. No trustee is liable to any creditor for paying the expenses of a beneficiary of a spendthrift trust.

Source: SL 2007, ch 280, § 12; SL 2011, ch 212, § 34.
S.D. Codified Laws § 55-1A-8 — SD Code / Title 55 / Chapter 1A / Section 55-1A-8
Acquisition of undivided interest in trust asset
Status: in_force

A trustee may acquire an undivided interest in a trust asset in which he, in any trust capacity, holds an undivided interest.

Source: SL 1979, ch 336, § 8.
S.D. Codified Laws § 55-1A-22 — SD Code / Title 55 / Chapter 1A / Section 55-1A-22
Holding stock in nominee's name without disclosing fiduciary relationship
Status: in_force

A trustee may hold any stock or other security in the name of a nominee or nominees, without disclosure of any fiduciary relationship, but he shall be liable for any and all acts and omissions of the nominee relating to such assets.

Source: SL 1979, ch 336, § 22.
S.D. Codified Laws § 55-4-54 — SD Code / Title 55 / Chapter 4 / Section 55-4-54
Enforcement of transaction entered into in reliance on certificate of trust
Status: in_force

Any person who in good faith enters into a transaction in reliance on a certificate of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct.

Source: SL 2009, ch 252, § 27.
S.D. Codified Laws § 55-17-8 — SD Code / Title 55 / Chapter 17 / Section 55-17-8
Records
Status: in_force

The trustee of a South Dakota special spousal trust shall maintain records that identify which property held by the trust is South Dakota special spousal property and which property held by the trust is not South Dakota special spousal property.

Source: SL 2016, ch 231, § 36.
S.D. Codified Laws § 55-1-46 — SD Code / Title 55 / Chapter 1 / Section 55-1-46
No contest clause defined--Enforceability
Status: in_force

For purposes of §§ 55-1-46 to 55-1-51 , inclusive, a no contest clause is a provision or clause in a trust, that penalizes a qualified beneficiary for contesting a trust or instituting other proceedings at law or equity relating to the trust estate, excluding proceedings related to trust administration. Except as provided in §§ 55-1-47 to 55-1-51 , inclusive, a no contest clause shall be enforced unless probable cause exists for instituting the proceeding on the grounds of:

(1) Fraud;

(2) Duress;

(3) Revocation;

(4) Lack of contractual capacity;

(5) Undue influence;

(6) Mistake;

(7) Forgery; or

(8) Irregularity in the execution of the trust document.

Source: SL 2012, ch 233, § 8.
S.D. Codified Laws § 55-8-15 — SD Code / Title 55 / Chapter 8 / Section 55-8-15
Corporation and transfer agent not liable for breach of fiduciary duty or on guarantee of fiduciary's signature
Status: in_force

Sections 55-8-13 and 55-8-14 do not impose any liability upon the corporation or its transfer agent.

Source: SL 1961, ch 22, § 7 (3).
S.D. Codified Laws § 55-4-60 — SD Code / Title 55 / Chapter 4 / Section 55-4-60
Attorney-client relationship with fiduciary--Privileged communications--Relation to beneficiary
Status: in_force

If an attorney-client relationship exists between an attorney and a fiduciary, communications between the attorney and the fiduciary are subject to the attorney-client privilege, unless waived by the fiduciary, even though fiduciary moneys may be used to compensate the attorney for legal services rendered to the fiduciary, or even if a beneficiary is entitled to accountings or other information regarding the estate, trust estate, or fiduciary property. The existence of a fiduciary relationship between a fiduciary and a beneficiary does not constitute or give rise to any waiver of the privilege for communications between the attorney and the fiduciary.

Source: SL 2026, ch 198, § 6.
S.D. Codified Laws § 55-7-5 — SD Code / Title 55 / Chapter 7 / Section 55-7-5
Check or bill of exchange drawn by fiduciary payable to third person--Liability of payee
Status: in_force

If a check or other bill of exchange is drawn by a fiduciary as such, or in the name of his principal by a fiduciary empowered to draw such instrument in the name of his principal, the payee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in drawing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith. If, however, such instrument is payable to a personal creditor of the fiduciary and delivered to the creditor in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is drawn and delivered in any transaction known by the payee to be for the personal benefit of the fiduciary, the creditor or other payee is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in drawing or delivering the instrument.

Source: SL 1943, ch 19, § 5; SDC Supp 1960, § 6.0705.
S.D. Codified Laws § 55-17-4 — SD Code / Title 55 / Chapter 17 / Section 55-17-4
Amendment and revocation
Status: in_force

A South Dakota special spousal trust may not be amended or revoked unless the trust agreement provides for amendment or revocation, or unless the trust agreement is amended or revoked by a later South Dakota special spousal trust. To amend or revoke the trust, the later South Dakota special spousal trust is not required to declare any property held by the trustee as special spousal property. The amended trust or the revocation is enforceable without consideration. However, notwithstanding the other provisions of this chapter, unless the South Dakota special spousal trust expressly provides otherwise, at any time after the death of the first spouse the surviving spouse may amend the South Dakota special spousal trust with regard to the surviving spouse's property to be disposed of at the surviving spouse's death. For purposes of this section, the term, surviving spouse's property, means the property that consists of the surviving spouse's property that is not South Dakota special spousal property and the surviving spouse's share of the special spousal property determined as of the date of the first spouse's death.

Source: SL 2016, ch 231, § 32.
S.D. Codified Laws § 55-9-12 — SD Code / Title 55 / Chapter 9 / Section 55-9-12
Taxable expenditures prohibited
Status: in_force

The trustee of a trust described in § 55-9-7 shall not make any taxable expenditure which would give rise to any liability for the tax imposed by section 4945 (a) of the Internal Revenue Code.

Source: SL 1972, ch 259, § 2 (5).
S.D. Codified Laws § 55-10A-18 — SD Code / Title 55 / Chapter 10A / Section 55-10A-18
Exemption of third person from liability
Status: in_force

A third person in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining:

(1) The validity of the purported custodian's designation;

(2) The propriety of, or the authority under this chapter for, any act of the purported custodian;

(3) The validity or propriety under this chapter of any instrument or instructions executed or given either by the person purporting to make a transfer or by the purported custodian; or

(4) The propriety of the application of any property of the minor delivered to the purported custodian.

Source: SL 1986, ch 409, § 18.
S.D. Codified Laws § 55-16-6 — SD Code / Title 55 / Chapter 16 / Section 55-16-6
Successor qualified person
Status: in_force

If a qualified person of a trust ceases to meet the requirements of § 55-16-3 , and there remains no trustee that meets such requirements, such qualified person shall be deemed to have resigned as of the time of such cessation, and thereupon the successor qualified person provided for in the trust instrument shall become a qualified person of the trust, or in the absence of any successor qualified person provided for in the trust instrument, the circuit court shall, upon application of any interested party, appoint a successor qualified person.

Source: SL 2005, ch 261, § 6.
S.D. Codified Laws § 55-10A-12 — SD Code / Title 55 / Chapter 10A / Section 55-10A-12
Single custodianship
Status: in_force

A transfer may be made only for one minor, and only one person may be the custodian. All custodial property held under this chapter by the same custodian for the benefit of the same minor constitutes a single custodianship.

Source: SL 1986, ch 409, § 12.
S.D. Codified Laws § 55-1-34 — SD Code / Title 55 / Chapter 1 / Section 55-1-34
Provision that beneficial interest in trust income or principal may not be transferred before payment to beneficiary permissible
Status: in_force

A settlor may provide in the terms of the trust that a beneficiary's beneficial interest in a trust's income, principal, or in both, may not be voluntarily or involuntarily transferred before payment or delivery of the beneficial interest to the beneficiary by the trustee.

Source: SL 2007, ch 280, § 11.
S.D. Codified Laws § 55-3-7 — SD Code / Title 55 / Chapter 3 / Section 55-3-7
Trustee's power as agent
Status: in_force

A trustee is a general agent for the trust and the trust property. The trustee's authority is the authority that is conferred upon the trustee by the declaration of trust and by this chapter and none other. The trustee's acts, within the scope of the trustee's authority, bind the trust and the trust property to the same extent as the acts of an agent bind the agent's principal.

Source: SDC 1939, § 59.0209; SL 2016, ch 231, § 20.
S.D. Codified Laws § 55-19-17 — SD Code / Title 55 / Chapter 19 / Section 55-19-17
Fiduciary authority generally
Status: in_force

A fiduciary's or designated recipient's authority with respect to a digital asset of a user:

(1) Is subject to the applicable terms of service except as otherwise provided in § 55-19-4 ;

(2) Is subject to other applicable law, including copyright law;

(3) Is limited by the scope of the fiduciary's duties, if a fiduciary; and

(4) May not be used to impersonate the user.

Source: SL 2017, ch 209, § 17.
S.D. Codified Laws § 55-1A-20 — SD Code / Title 55 / Chapter 1A / Section 55-1A-20
Payment of calls, assessments, and other sums charged against corporate securities
Status: in_force

A trustee may pay calls, assessments, and any other sums chargeable or accruing against or on account of shares of stock, bonds, debentures, or other corporate securities held in trust.

Source: SL 1979, ch 336, § 20.
S.D. Codified Laws § 55-6-2 — SD Code / Title 55 / Chapter 6 / Section 55-6-2
Bank or trust company investment in funds
Status: in_force

Any bank or trust company qualified to act as fiduciary in this state may, as such fiduciary or cofiduciary, invest funds which it lawfully holds for investment in interests in common trust funds or collective investment funds established pursuant to § 55-6-1 , if such investment is not prohibited by the instrument, judgment, decree, or order creating such fiduciary relationship, and if, in the case of cofiduciaries, the bank or trust company procures the consent of its cofiduciary or cofiduciaries to such investment.

Source: SL 1941, ch 20, § 1; SDC Supp 1960, § 6.0901; SL 2011, ch 212, § 24.
S.D. Codified Laws § 55-7-6 — SD Code / Title 55 / Chapter 7 / Section 55-7-6
Transfer of check or bill of exchange drawn by fiduciary who holds it as payee or transferee
Status: in_force

If a check or other bill of exchange is drawn by a fiduciary as such or in the name of his principal by a fiduciary empowered to draw such instrument in the name of his principal, payable to the fiduciary personally, or payable to a third person and by him transferred to the fiduciary, and is thereafter transferred by the fiduciary, whether in payment of a personal debt of the fiduciary or otherwise, the transferee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in transferring the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith.

Source: SL 1943, ch 19, § 6; SDC Supp 1960, § 6.0706.
S.D. Codified Laws § 55-1B-4 — SD Code / Title 55 / Chapter 1B / Section 55-1B-4
Trust advisor, tax trust advisor as fiduciary
Status: in_force

If one or more trust advisors and tax trust advisors are given authority by the terms of a governing instrument to direct, consent to, or disapprove a fiduciary's investment, distribution, or tax decisions, or proposed investment, distribution, or tax decisions, such trust advisors and tax trust advisors are considered to be fiduciaries when exercising such authority.

For investment decisions, so long as there is at least one fiduciary exercising the authority of the investment advisor pursuant to § 55-1B-10 for the investment, except in the case of willful misconduct or gross negligence by the fiduciary investment advisor in the selection or monitoring of the nonfiduciary trust advisors, the governing instrument may provide that such other trust advisors acting pursuant to this section are not acting in a fiduciary capacity.

For distribution decisions, so long as there is at least one fiduciary exercising the authority of the distribution advisor pursuant to § 55-1B-11 for the distribution, except in the case of willful misconduct or gross negligence by the fiduciary distribution advisor in the selection or monitoring of the nonfiduciary trust advisors, the governing instrument may provide that the other trust advisors acting pursuant to this section are not acting in a fiduciary capacity.

For tax decisions, so long as there is at least one fiduciary exercising the authority of the tax trust advisor pursuant to § 55-1B-13 for the tax decision, except in the case of willful misconduct or gross negligence by the fiduciary tax trust advisor in the selection or monitoring of the nonfiduciary tax trust advisors, the governing instrument may provide that such other tax trust advisors acting pursuant to this section are not acting in a fiduciary capacity.

Source: SL 1997, ch 280, § 4; SL 2018, ch 275, § 24; SL 2021, ch 207, § 9; SL 2025, ch 196, § 3.
S.D. Codified Laws § 55-18-19 — SD Code / Title 55 / Chapter 18 / Section 55-18-19
Appointment of court representative
Status: in_force

In a judicial proceeding, if the court determines that a person cannot be adequately represented by a representative, the court may order that the person be provided notice or may order the appointment of a court representative or a replacement court representative to bind the person. The basis for a finding that representation is inadequate shall be set forth specifically in an order and may include, by way of example, a finding that a representative has a material conflict of interest or acted with hostility to the interest of the person represented.

A trustee, a beneficiary, or, if authorized by the governing instrument, a fiduciary other than a trustee, may petition the court for the appointment of a court representative. A court representative has the authority to act as a representative in any proceeding unless otherwise ordered by the court.

Notwithstanding § 55-18-5 , the court may appoint a court representative to bind uninterested beneficiaries, unborn persons, unascertained persons, or the potential appointees or the takers in default of a power of appointment.

Notwithstanding § 55-18-20 , the court may appoint a court representative to bind a settlor.

Source: SL 2017, ch 208, § 19; SL 2018, ch 275, § 38.
S.D. Codified Laws § 55-4-30 — SD Code / Title 55 / Chapter 4 / Section 55-4-30
Power of settlor of trust
Status: in_force

Subject to the final paragraph below, the settlor of any trust affected by this chapter may:

(1) By provision in the instrument creating the trust if the trust was created by a writing;

(2) By oral statement to the trustee at the time of the creation of the trust if the trust was created orally; or

(3) By an amendment of the trust, if the settlor reserved the power to amend the trust, relieve the trustee from any or all of the duties, restrictions, and liabilities which would otherwise be imposed upon the trustee by this chapter; or alter or deny to the trustee any or all of the privileges and powers conferred upon the trustee by this chapter; or add duties, restrictions, liabilities, privileges, or powers, to those imposed or granted by this chapter. However, no act of the settlor relieves a trustee from the duties, restrictions, and liabilities imposed upon the trustee by §§ 55-4-10 to 55-4-12 , inclusive.

A provision of a trust instrument relieving a trustee of liability for breach of trust is unenforceable to the extent that it relieves the trustee of liability for breach of trust committed in bad faith or as a result of gross negligence.

Source: SL 1943, ch 308, § 17; SDC Supp 1960, § 59.0517; SL 2000, ch 229, § 1; SL 2007, ch 247, § 10.
S.D. Codified Laws § 55-13-1 — SD Code / Title 55 / Chapter 13 / Section 55-13-1
Definitions
Status: in_force

As used in this chapter:

(1) "Income beneficiary" means the person to whom income is presently payable or for whom it is accumulated for distribution as income;

(2) "Inventory value" means the cost of property purchased by the trustee and the market value of other property at the time it became subject to the trust, but in the case of a testamentary trust the trustee may use any value finally determined for the purposes of an estate or inheritance tax;

(3) "Remainderman" means the person entitled to principal, including income which has been accumulated and added to principal;

(4) "Trustee" means an original trustee and any successor or added trustee.

Source: SL 1984, ch 323, § 1.
S.D. Codified Laws § 55-10A-9 — SD Code / Title 55 / Chapter 10A / Section 55-10A-9
Manner of creating custodial property and effecting transfer
Status: in_force

Custodial property is created and a transfer is made if:

(1) An uncertificated security or a certificated security in registered form is either:

(a) registered in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for _________________________ (name of minor) under the South Dakota Uniform Transfers to Minors Act"; or

(b) delivered if in certificated form, or any document necessary for the transfer of an uncertificated security is delivered, together with any necessary endorsement to an adult other than the transferor or to a trust company as custodian, accompanied by an instrument in substantially the form set forth in § 55-10A-10 ;

(2) Money is paid or delivered to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for _________________________ (name of minor) under the South Dakota Uniform Transfers to Minors Act";

(3) The ownership of a life or endowment insurance policy or annuity contract is either:

(a) registered with the issuer in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for _________________________ (name of minor) under the South Dakota Uniform Transfers to Minors Act"; or

(b) assigned in a writing delivered to an adult other than the transferor or to a trust company whose name in the assignment is followed in substance by the words: "as custodian for __________________________ (name of minor) under the South Dakota Uniform Transfers to Minors Act";

(4) An irrevocable exercise of a power of appointment or an irrevocable present right to future payment under a contract is the subject of a written notification delivered to the payor, issuer or other obligor that the right is transferred to the transferor, an adult other than the transferor, or a trust company whose name in the notification is followed in substance by the words: "as custodian for _________________________ (name of minor) under the South Dakota Uniform Transfers to Minors Act";

(5) An interest in real property is recorded in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for _________________________ (name of minor) under the South Dakota Uniform Transfers to Minors Act";

(6) A certificate of title issued by a department or agency of a state or of the United States which evidences title to tangible personal property is either:

(a) issued in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: "as custodian for _________________________ (name of minor) under the South Dakota Uniform Transfers to Minors Act"; or

(b) delivered to an adult other than the transferor or to a trust company, endorsed to that person followed in substance by the words: "as custodian for _________________________ (name of minor) under the South Dakota Uniform Transfers to Minors Act"; or

(7) An interest in any property not described in subdivisions (1) through (6) is transferred to an adult other than the transferor or to a trust company by a written instrument in substantially the form set forth in § 55-10A-10 .

Source: SL 1986, ch 409, § 9.
S.D. Codified Laws § 55-4-10 — SD Code / Title 55 / Chapter 4 / Section 55-4-10
Loan of trust funds
Status: in_force

Except as provided in §§ 55-4-11 and 55-4-12 , or except as may be expressly authorized by a court order, by the written consent of all qualified beneficiaries which may be given notwithstanding the provisions of § 55-4-31 , by the written authorization from or direction by a trust protector, or by the terms of the governing instrument, which may be given by the settlor notwithstanding the provisions of § 55-4-30 :

(1) No corporate trustee may lend trust funds to itself or an affiliate, or to any director, officer, or employee of itself or of an affiliate;

(2) No noncorporate trustee may lend trust funds to himself or herself, or to any relative, employer, employee, partner, or other business associate.

Source: SL 1943, ch 308, § 3; SDC Supp 1960, § 59.0503; SL 2017, ch 204, § 20.
S.D. Codified Laws § 55-1-57 — SD Code / Title 55 / Chapter 1 / Section 55-1-57
Contents of registration statement
Status: in_force

Registration shall be accomplished by filing a statement indicating the name and address of the trustee in which it acknowledges the trusteeship. The statement shall indicate whether the trust has been registered elsewhere.

The statement shall identify the trust:

(1) In the case of a testamentary trust, by the name of the testator and the date and place of domiciliary probate; or in the case of a written inter vivos trust, by the name of each settlor and the original trustee and the date of the trust instrument;

(2) If a trust has been registered elsewhere, registration in this state is ineffective until either the earlier registration is released by order of the court where prior registration occurred or an instrument executed by the trustee and all current income or principal beneficiaries is filed with the registration in this state;

(3) The name and address of each co-trustee, trust advisor, trust protector, or other trust fiduciary;

(4) A statement that the trustee acknowledges the trusteeship and submits to the jurisdiction of the court in any proceeding relating to the trust that may be initiated by any interested person while the trust remains registered, providing that notice is given as provided by law.

Source: SL 2017, ch 204, § 9.
S.D. Codified Laws § 55-14A-3 — SD Code / Title 55 / Chapter 14A / Section 55-14A-3
Standard of conduct in managing and investing institutional fund
Status: in_force

(a) Subject to the intent of a donor expressed in a gift instrument, an institution, in managing and investing an institutional fund, shall consider the charitable purposes of the institution and the purposes of the institutional fund.

(b) In addition to complying with the duty of loyalty imposed by law other than this chapter, each person responsible for managing and investing an institutional fund shall manage and invest the fund in good faith and with the care an ordinarily prudent person in a like position would exercise under similar circumstances.

(c) In managing and investing an institutional fund, an institution:

(1) May incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution, and the skills available to the institution; and

(2) Shall make a reasonable effort to verify facts relevant to the management and investment of the fund.

(d) An institution may pool two or more institutional funds for purposes of management and investment.

(e) Except as otherwise provided by a gift instrument, the following rules apply:

(1) In managing and investing an institutional fund, the following factors, if relevant, must be considered:

(A) General economic conditions;

(B) The possible effect of inflation or deflation;

(C) The expected tax consequences, if any, of investment decisions or strategies;

(D) The role that each investment or course of action plays within the overall investment portfolio of the fund;

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

(F) Other resources of the institution;

(G) The needs of the institution and the fund to make distributions and to preserve capital; and

(H) An asset's special relationship or special value, if any, to the charitable purposes of the institution.

(2) Management and investment decisions about an individual asset must be made not in isolation but rather in the context of the institutional fund's portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the fund and to the institution.

(3) Except as otherwise provided by law other than this chapter, an institution may invest in any kind of property or type of investment consistent with this section.

(4) An institution shall diversify the investments of an institutional fund unless the institution reasonably determines that, because of special circumstances, the purposes of the fund are better served without diversification.

(5) Within a reasonable time after receiving property, an institution shall make and carry out decisions concerning the retention or disposition of the property or to rebalance a portfolio, in order to bring the institutional fund into compliance with the purposes, terms, and distribution requirements of the institution as necessary to meet other circumstances of the institution and the requirements of this chapter.

(6) A person that has special skills or expertise, or is selected in reliance upon the person's representation that the person has special skills or expertise, has a duty to use those skills or that expertise in managing and investing institutional funds.

Source: SL 2007, ch 283, § 3.
S.D. Codified Laws § 55-2-1 — SD Code / Title 55 / Chapter 2 / Section 55-2-1
Trustee's obligation of good faith
Status: in_force

In all matters connected with his trust a trustee is bound to act in the highest good faith toward his beneficiary and may not obtain any advantage therein over the latter by the slightest misrepresentation, concealment, threat, or adverse pressure of any kind.

Source: SDC 1939, § 59.0106.
S.D. Codified Laws § 55-3-17.1 — SD Code / Title 55 / Chapter 3 / Section 55-3-17.1
Resignation of fiduciary
Status: in_force

In addition to the provisions included in the governing instrument, a fiduciary may resign:

(1) In the case of a revocable trust:

(a) Without court approval upon at least thirty days' notice to the settlor, all fiduciaries, all designated successors to the resigning fiduciary's office and all those who have authority to appoint a successor to replace the resigning fiduciary; or

(b) With court approval;

(2) In the case of an irrevocable trust:

(a) Without court approval upon at least thirty days' notice to the settlor, if living, all fiduciaries, all designated successors to the resigning fiduciary's office, all those who have authority to appoint a successor to replace the resigning fiduciary and to those qualified beneficiaries who are known to the resigning fiduciary other than those who are restricted from receiving notice or have elected not to receive notice pursuant to the governing instrument, § 55-2-13 or chapter 55-18 ; or

(b) With court approval.

In approving a resignation under subdivision (1)(b) or (2)(b), the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.

Any liability of a resigning fiduciary or of any sureties on the fiduciary's bond for its acts or omissions is not discharged or affected by the fiduciary's resignation unless the court orders otherwise.

Following resignation, a successor fiduciary may be appointed pursuant to the terms set forth in the governing instrument or under § 21-22-12 .

Nothing in this section may be construed to be the exclusive means of resignation by a fiduciary.

Source: SL 2019, ch 209, § 2.
S.D. Codified Laws § 55-15-9 — SD Code / Title 55 / Chapter 15 / Section 55-15-9
Administration of total return unitrust--Authority of trustee
Status: in_force

In administering a total return unitrust, the trustee may, in its sole discretion but subject to the provisions of the governing instrument, determine:

(1) The effective date of the conversion;

(2) The timing of distributions during the year, if any, including provisions for prorating distributions for a short year when the effective date of a conversion takes place during the year;

(3) Whether distributions are to be made in cash or in kind or partly in cash and partly in kind;

(4) If the trust is reconverted to an income trust, the effective date of such reconversion; and

(5) Such other administrative issues as may be necessary or appropriate to carry out the purposes of this chapter.

Source: SL 2002, ch 225, § 9; SL 2023, ch 161, § 14.
S.D. Codified Laws § 55-18-3 — SD Code / Title 55 / Chapter 18 / Section 55-18-3
Effect of provisions of chapter
Status: in_force

In any proceeding:

(1) Any notice, governing instrument, accounting, report, or other information which is provided to a representative has the same effect as if the same was given to the person represented;

(2) The consent of a representative has the same effect as if the person represented had consented;

(3) A representative may otherwise bind the person represented; and

(4) A finding, decree, judgment, ruling, or order in a judicial proceeding is binding and conclusive on all persons upon whom notice or service of process is not required pursuant to this chapter.

Source: SL 2017, ch 208, § 3.
S.D. Codified Laws § 55-18-10 — SD Code / Title 55 / Chapter 18 / Section 55-18-10
Disclosure of information regarding representatives
Status: in_force

In a judicial proceeding, the petitioner shall set forth information with respect to each representative, each person the representative represents, and the authority by which each representative acts under this chapter.

In a nonjudicial proceeding, the notifier shall set forth information with respect to each representative, each person the representative represents, the authority by which each representative acts under the provisions of this chapter, and a notification that a representative may decline to act pursuant to § 55-18-11 .

No information need to be set forth regarding any person described in subdivisions (1) to (5), inclusive, of § 55-18-5 unless a representative is acting for those persons.

Source: SL 2017, ch 208, § 10; SL 2018, ch 275, § 35.
S.D. Codified Laws § 55-1-21.5 — SD Code / Title 55 / Chapter 1 / Section 55-1-21.5
Removal of enforcer
Status: in_force

A trustee may petition the court for the removal of an enforcer. An enforcer may be removed if the court finds:

(1) The enforcer committed a serious breach of the enforcer's duty, or is unfit or unwilling to serve;

(2) A significant and unjustified lack of cooperation or hostility between the enforcer and the trustee, trust protector, or trust advisor; or

(3) There has been a substantial change in circumstances and removal of the enforcer would best serve the purpose or purposes of the trust.

The governing instrument may provide different or additional procedures for the removal of an enforcer.

Source: SL 2018, ch 275, § 8; SL 2020, ch 206, § 2.
S.D. Codified Laws § 55-6-3 — SD Code / Title 55 / Chapter 6 / Section 55-6-3
Compliance with law governing administration of trust estates
Status: in_force

The bank or trust company operating such common trust funds or collective investment funds shall comply with the provisions of chapter 21-22 in the administration of the trust estate.

Source: SL 1941, ch 20, § 2; SDC Supp 1960, § 6.0902; SL 2011, ch 212, § 26.
S.D. Codified Laws § 55-4-39 — SD Code / Title 55 / Chapter 4 / Section 55-4-39
"Trustee" construed broadly
Status: in_force

The reference to trustee in § 55-4-38 includes any person who is deemed to have any power of a trustee, whether because such person has the right to remove or replace any trustee, or because a reciprocal trust or power doctrine applies, or otherwise.

Source: SL 2000, ch 229, § 5.
S.D. Codified Laws § 55-1-43 — SD Code / Title 55 / Chapter 1 / Section 55-1-43
Discretionary interests
Status: in_force

The following provisions apply only to discretionary interests:

(1) A discretionary interest is neither a property interest nor an enforceable right. It is a mere expectancy;

(2) No creditor may force a distribution with regard to a discretionary interest. No creditor may require the trustee to exercise the trustee's discretion to make a distribution with regard to a discretionary interest;

(3) A court may review a trustee's distribution discretion only if the trustee:

(a) Acts dishonestly;

(b) Acts with an improper motive; or

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

Absent express language to the contrary, in the event that the distribution language in a discretionary interest permits unequal distributions between beneficiaries or distributions to the exclusion of other beneficiaries, the trustee may distribute all of the accumulated, accrued, or undistributed income and principal to one beneficiary in the trustee's discretion.

Regardless of whether a beneficiary has any outstanding creditor, a trustee of a discretionary interest may directly pay any expense on behalf of such beneficiary and may exhaust the income and principal of the trust for the benefit of such beneficiary. No trustee is liable to any creditor for paying the expenses of a beneficiary of a discretionary interest.

Source: SL 2007, ch 280, § 20; SL 2009, ch 252, § 11.
S.D. Codified Laws § 55-4-9 — SD Code / Title 55 / Chapter 4 / Section 55-4-9
Holding stock in name of nominee
Status: in_force

A trustee owning any stocks, bonds, notes, debentures, or other written obligations of any public or private corporation may hold the same in the name of a nominee, without mention of the trust in the records of such corporation or in the stock certificate or stock registration book of such corporation; provided that

(1) The trust records and all reports or accounts rendered by the trustee clearly show the ownership of such stocks, bonds, notes, debentures, or other written obligations of such public or private corporation by the trustee and the facts regarding its holding; and

(2) The nominee shall deposit with the trustee a signed statement showing the trust ownership, shall endorse the stock certificate or other said instrument in blank, and shall not have possession of the stock certificate or other said instrument or access thereto except under the immediate supervision of the trustee.

The trustee shall be personally liable for any loss to the trust resulting from any act of such nominee in connection with stocks, bonds, notes, debentures, or other written obligations of any public or private corporation so held.

Source: SL 1943, ch 308, § 9; SDC Supp 1960, § 59.0509; SL 1967, ch 338.
S.D. Codified Laws § 55-6-1.2 — SD Code / Title 55 / Chapter 6 / Section 55-6-1.2
Collective investment fund defined
Status: in_force

For purposes of this chapter, the term, collective investment fund, is a fund as defined in 12 C.F.R. 9.18(a)(2) as of January 1, 2011, and is provided exemption from taxation according to Internal Revenue Service, Revenue Ruling 81-100, published March 30, 1981.

Source: SL 2011, ch 212, § 29.
S.D. Codified Laws § 55-5-15 — SD Code / Title 55 / Chapter 5 / Section 55-5-15
Applicability of chapter
Status: in_force

This chapter applies to all existing and future trusts, but only as to actions or inactions occurring after July 1, 1995.

Source: SL 1995, ch 271, § 15.
S.D. Codified Laws § 55-4-16 — SD Code / Title 55 / Chapter 4 / Section 55-4-16
Withdrawals from mingled trust funds
Status: in_force

Where a person who is a trustee of two or more trusts has mingled the funds of two or more trusts in the same aggregate of cash, or in the same bank or brokerage account or other investment, and a withdrawal is made therefrom by the trustee for his own benefit, or for the benefit of a third person not a beneficiary or creditor of one or more of the trusts, or for an unknown purpose, such a withdrawal shall be charged first to the amount of cash, credit, or other property of the trustee in the mingled fund, if any, and after the exhaustion of the trustee's cash, credit, or other property, then to the several trusts in proportion to their several interests in the cash, credit, or other property at the time of the withdrawal.

Source: SL 1943, ch 308, § 15; SDC Supp 1960, § 59.0515.
S.D. Codified Laws § 55-1A-33 — SD Code / Title 55 / Chapter 1A / Section 55-1A-33
Advance of income or loan to beneficiary--Lien
Status: in_force

A trustee may advance income or make loans out of trust property to a beneficiary on terms and conditions the trustee considers to be fair and reasonable under the circumstances, for which such advance or loan the trustee shall have a lien on the future benefits of such beneficiary.

Source: SL 1979, ch 336, § 33; SL 2011, ch 212, § 18.
S.D. Codified Laws § 55-2-24 — SD Code / Title 55 / Chapter 2 / Section 55-2-24
Notice to beneficiaries and other interested parties
Status: in_force

Except as otherwise provided by chapter 21-22 , § 55-4-58 , or by the terms of a governing instrument, and in addition to the methods of notice allowed or mandated by title 15, notice to beneficiaries and other persons interested in a trust pursuant to § 55-2-13 or otherwise may be carried out by means of any of the following methods:

(1) By delivery to the person, to the person's last known address, or to an address supplied by the person;

(2) By U.S. mail, postage prepaid, addressed to the person at the person's last known address, or to an address supplied by the person;

(3) By facsimile to a facsimile number of such person;

(4) By electronic communication, as defined by subdivision 55-19-1 (12); or

(5) By posting on or sending to an electronic network or site accessible via the internet, mobile application, computer, mobile device, tablet, or any other electronic device, together with separate notice of the posting provided to the person in conformity with subdivisions (1), (2), (3), or (4) of this section.

Source: SL 2023, ch 161, § 9.
S.D. Codified Laws § 55-9-10 — SD Code / Title 55 / Chapter 9 / Section 55-9-10
Retention of excess business holdings prohibited
Status: in_force

The trustee of a trust described in § 55-9-7 shall not retain any excess business holdings which would give rise to any liability for the tax imposed by section 4943 (a) of the Internal Revenue Code.

Source: SL 1972, ch 259, § 2 (3).
S.D. Codified Laws § 55-1B-12 — SD Code / Title 55 / Chapter 1B / Section 55-1B-12
Powers and discretions of family advisor
Status: in_force

The powers and discretions of a family advisor are as provided in the governing instrument or by court order and may be exercised or not exercised, in the best interests of the trust, in the sole and absolute discretion of the family advisor. The powers and discretions may only include the following:

(1) Remove and appoint a trustee, a fiduciary provided for in the governing trust instrument, trust advisor, investment committee member, or distribution committee member;

(2) Appoint a trust protector, or a family advisor;

(3) Advise the trustee on matters concerning any beneficiary; receive trust accountings, investment reports, and other information from the trustee or to which a beneficiary is entitled; attend meetings whether in person or by any other means with the trustee, investment trust advisors, distribution trust advisors, or other advisors whether in person or by any means, electronic or otherwise; and to consult with a fiduciary regarding both fiduciary and nonfiduciary matters or actions, all without any power or discretion to take any action as a fiduciary; or

(4) Provide direction regarding notification of qualified beneficiaries pursuant to § 55-2-13 .

A family advisor is not required to exercise any powers or discretions under any circumstances. Every action or inaction by a family advisor is a nonfiduciary action or inaction and a family advisor is absolutely excluded from liability to any other person for an action or inaction as a family advisor. A court may review a family advisor's exercise of the powers described in subdivisions (1), (2), and (4) only if the family advisor acts dishonestly or with an improper motive but may not review a family advisor's failure to exercise any powers. A reasonableness standard may not be applied to any action or inaction of a family advisor. Other than for the two circumstances listed above, a court has no jurisdiction to review a family advisor's action or inaction.

A family advisor is entitled to compensation as provided in the governing instrument. If the governing instrument does not provide for or establish compensation, a family advisor is entitled to reasonable compensation for the exercise of the powers and discretions granted to the family advisor pursuant to this chapter.

Source: SL 2016, ch 231, § 18; SL 2020, ch 206, § 11.
S.D. Codified Laws § 55-9-13 — SD Code / Title 55 / Chapter 9 / Section 55-9-13
Judicial determination that restrictive provisions are contrary to instrument creating trust
Status: in_force

Sections 55-9-7 to 55-9-12 , inclusive, shall not apply to the extent that a court of competent jurisdiction shall determine that such application would be contrary to the terms of the will, trust instrument, or other governing instrument described in § 55-9-7 and that such will, trust instrument or other governing instrument may not be changed to conform to §§ 55-9-8 to 55-9-12 , inclusive.

Source: SL 1972, ch 259, § 3.
S.D. Codified Laws § 55-17-10 — SD Code / Title 55 / Chapter 17 / Section 55-17-10
Right of child to support
Status: in_force

Notwithstanding anything contained in § 55-17-9 to the contrary, a South Dakota special spousal trust may not adversely affect the right of a child to support.

Source: SL 2016, ch 231, § 38.
S.D. Codified Laws § 55-1B-1 — SD Code / Title 55 / Chapter 1B / Section 55-1B-1
Definition of terms
Status: in_force

Terms used in this chapter mean:

(1) "Instrument," any revocable or irrevocable trust document created inter vivos or testamentary or any custodial account agreement, whether such document or agreement was created prior to, on, or after July 1, 1997;

(2) "Trust protector," any person whose appointment as protector is provided for in the instrument. Such person may not be considered to be acting in a fiduciary capacity except to the extent the governing instrument provides otherwise. However, a protector shall be considered acting in a fiduciary capacity to the extent that the person exercises the authority of an investment trust advisor, a distribution trust advisor, or a tax trust advisor;

(3) "Trust advisor," an investment trust advisor, a distribution trust advisor, a tax trust advisor, or, in the case of a custodial account, a custodial account owner or the owner's designee, except that a tax trust advisor is not considered a trust advisor for purposes of § 55-2-13 ;

(4) "Fiduciary," a trustee or custodian under any instrument, an executor, administrator, or personal representative of a decedent's estate, or any other party, including a trust advisor, a trust protector, or a trust committee, who is acting in a fiduciary capacity for any person, trust, or estate;

(5) "Excluded fiduciary," any fiduciary excluded from exercising certain powers under the instrument, which powers may be exercised by the grantor, custodial account owner, trust advisor, trust protector, trust committee, or other persons designated in the instrument;

(6) "Investment trust advisor," a fiduciary, given authority by the instrument to exercise all or any portions of the powers and discretions set forth in § 55-1B-10 ;

(7) "Distribution trust advisor," a fiduciary, given authority by the instrument to exercise all or any portions of the powers and discretions set forth in § 55-1B-11 ;

(8) “Tax trust advisor,” a fiduciary, given authority by the instrument to exercise any tax power, including all or any powers and discretions set forth in § 55-1B-13 ;

(9) "Custodial account," an account, established by a party with a bank as defined in 26 U.S.C. § 408(n) (January 1, 2006) or with another person approved by the Internal Revenue Service as satisfying the requirements to be a nonbank trustee or a nonbank passive trustee set forth in U.S. Treasury Regulations promulgated under 26 U.S.C. § 408, that is governed by an instrument concerning the establishment or maintenance, or both, of an individual retirement account, qualified retirement plan, Archer medical savings account, health savings account, Coverdell education savings account, or any similar retirement or savings vehicle permitted under the Internal Revenue Code of 1986 (January 1, 2006);

(10) "Custodial account owner," any party who:

(a) Establishes a custodial account;

(b) Has the power to designate the beneficiaries or appoint the custodian of the custodial account; or

(c) Is the party who possesses the power to direct the investment, disposition, or retention of any assets in the custodial account or name an authorized designee to affect the same;

(11) "Family advisor," any person:

(a) Whose appointment is provided for in the governing instrument or by court order;

(b) Who is authorized to consult with or advise a fiduciary regarding fiduciary or nonfiduciary matters and actions; and

(c) Who may also be authorized by the governing instrument or court order to otherwise act in a nonfiduciary capacity.

Source: SL 1997, ch 280, § 1; SL 2005, ch 260, § 2; SL 2006, ch 248, § 1; SL 2008, ch 257, § 9; SL 2011, ch 212, § 3; SL 2016, ch 231, § 15; SL 2017, ch 204, § 15; SL 2018, ch 275, § 22; SL 2025, ch 196, § 1.
S.D. Codified Laws § 55-1-21.4 — SD Code / Title 55 / Chapter 1 / Section 55-1-21.4
Enforcement of purpose of trust by enforcer
Status: in_force

The purposes of a purpose trust shall be enforced by an enforcer designated in the governing instrument. An enforcer may demand reasonable information related to the administration of the trust from the trustee, including a periodic accounting. If no enforcer or successor enforcer is acting pursuant to the terms of the governing instrument the court shall appoint one or more enforcers and successor enforcers. No purpose trust may fail for want of an enforcer. An enforcer may petition for, consent to, waive, or object to any matter regarding a purpose trust with regard to the purpose of the trust which the enforcer represents or concerning the administration of the purpose trust. An enforcer is a fiduciary whose duty is to enforce the trust's purpose as set forth in the governing instrument and, except as otherwise provided in the governing instrument, is entitled to reasonable compensation. An enforcer may also serve as a trust protector or a family advisor pursuant to chapter 55-1B . However, an enforcer may not serve as an enforcer while serving as a trustee or a distribution trust advisor of the same trust. Except as otherwise provided in the governing instrument, if more than one enforcer is acting, action may be taken by a majority of the enforcers.

Source: SL 2018, ch 275, § 7; SL 2020, ch 206, § 1.
S.D. Codified Laws § 55-8-13 — SD Code / Title 55 / Chapter 8 / Section 55-8-13
Participation in breach of fiduciary duty--Nonliability of third persons
Status: in_force

No person who participates in the acquisition, disposition, assignment or transfer of a security by or to a fiduciary, including a person who guarantees the signature of the fiduciary, is liable for participation in any breach of fiduciary duty by reason of failure to inquire whether the transaction involves a breach unless it is shown that he acted with actual knowledge that the proceeds of the transaction were being or were to be used wrongfully for the individual benefit of the fiduciary or that the transaction was otherwise in breach of duty.

Source: SL 1961, ch 22, § 7 (1).
S.D. Codified Laws § 55-1A-10 — SD Code / Title 55 / Chapter 1A / Section 55-1A-10
Deposit of trust funds in bank
Status: in_force

A trustee may deposit trust funds in a bank, including a bank operated by himself, or in a state or federal savings and loan association.

Source: SL 1979, ch 336, § 10.
S.D. Codified Laws § 55-19-23 — SD Code / Title 55 / Chapter 19 / Section 55-19-23
Custodian compliance
Status: in_force

A custodian shall comply with a request under this chapter from a fiduciary or designated recipient to disclose digital assets or terminate an account not later than sixty days after receipt of information required under this chapter. A fiduciary or designated recipient may apply to a court for an order directing compliance if the custodian fails to comply with the fiduciary's request within sixty days. An order under this section directing compliance must contain a finding that compliance is not in violation of 18 U.S.C. Section 2702.

Source: SL 2017, ch 209, § 23.
S.D. Codified Laws § 55-3-48 — SD Code / Title 55 / Chapter 3 / Section 55-3-48
South Dakota law governs administration of trust
Status: in_force

Unless the governing instrument or a court order expressly prohibits the change of the law of another jurisdiction to govern the administration of the trust, the laws of South Dakota shall govern the administration of a trust while the trust is administered in South Dakota.

Source: SL 2012, ch 233, § 25; SL 2016, ch 231, § 23.
S.D. Codified Laws § 55-4-2 — SD Code / Title 55 / Chapter 4 / Section 55-4-2
Powers attached to the office of trustee
Status: in_force

Unless it is otherwise provided by the trust instrument, or an amendment thereof, or by court order, all powers of a trustee shall be attached to the office and shall not be personal.

Source: SL 1943, ch 308, § 10; SDC Supp 1960, § 59.0510.
S.D. Codified Laws § 55-1-42 — SD Code / Title 55 / Chapter 1 / Section 55-1-42
Mandatory or support interests
Status: in_force

A beneficiary of a mandatory or a support interest has an enforceable right to a distribution pursuant to a court's review. A trustee's distribution decision may be reviewed for unreasonableness, dishonesty, improper motivation, or failure, if under a duty to do so, to act. This does not, however, raise the beneficiary's support interest to the level of a property interest.

If the trust contains a spendthrift provision, notwithstanding the beneficiary's right to force a distribution with regard to a mandatory or support interest, no creditor may force a distribution with regard to a mandatory or support interest. No creditor may reach present or future support distributions with regard to a mandatory or support interest.

Regardless of whether a beneficiary has any outstanding creditor, a trustee of a mandatory or a support interest may directly pay any expense on behalf of such beneficiary. No trustee is liable to any creditor for paying the expenses of a beneficiary of a mandatory or support interest.

Source: SL 2007, ch 280, § 19; SL 2008, ch 257, § 8; SL 2009, ch 252, § 10.
S.D. Codified Laws § 55-4-53 — SD Code / Title 55 / Chapter 4 / Section 55-4-53
Limitation of liability for acting in reliance on certificate of trust
Status: in_force

Any person who acts in reliance on a certificate of trust without knowledge that the representations contained in the certification are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the facts contained in the certification. Knowledge of the terms of the trust may not be inferred solely from the fact that a copy of all or part of the trust instrument is held by the person relying on the certification.

Source: SL 2009, ch 252, § 26.
S.D. Codified Laws § 55-1-36.2 — SD Code / Title 55 / Chapter 1 / Section 55-1-36.2
Income tax reimbursement or payment--Excluded source--Effect--Liability--Fiduciary duty--Applicability
Status: in_force

Unless the terms of the governing instrument expressly provide that a trustor may not be reimbursed by a trust for the trustor's personal income tax liability, if the trustor is treated under 26 U.S.C. §§ 671 to 678, inclusive (January 1, 2026), as the owner of all or part of the trust, the trustee, other than a trustee who is the trustor or a person who is a related or subordinate party with respect to the trustor within the meaning of 26 U.S.C. § 672(c) (January 1, 2026), may, in the trustee's sole discretion, or at the direction or with the consent of a trust advisor or trust protector, who, in either case, is not the trustor or a person who is a related or subordinate party with respect to the trustor, pay directly to any taxing authority, or 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 26 U.S.C. §§ 671 to 678, inclusive (January 1, 2026).

If there is a policy of insurance on the trustor's life held in the trust, the cash value of the policy, or the proceeds of any loan secured by an interest in the policy may not be used to reimburse the trustor or to pay an appropriate taxing authority on the trustor's behalf.

The power to make payments to, or for the benefit of, the trustor under this section, or the trustee's, trust advisor's, or trust protector's decision to exercise or direct the exercise of the power in favor of the trustor, may not cause the trustor to be treated as a beneficiary of the trust for purposes of § 55-1-36.1 or any other law of this state.

The provisions of this section do not apply if the application of this section would disqualify a trust for, or reduce the amount of, a marital or charitable deduction otherwise available to any person for state or federal income, gift, or estate tax purposes.

A trustee, trust advisor, or trust protector is not liable to any person for the exercise of, or the direction or consent to exercise, the power to reimburse or not reimburse a trustor for tax payable by the trustor pursuant to this section. The exercise of, or the direction or consent to exercise, the power to reimburse or not reimburse a trustor for tax payable by the trustor pursuant to this section is not a breach of fiduciary duty to any person.

This section applies only to trusts created on or after July 1, 2026, and to any trust for which the principal place of administration is moved to this state on or after July 1, 2026.

For purposes of this section, the term "trustor" includes a trustor, settlor, trustmaker, or any person treated under 26 U.S.C. §§ 671 to 678, inclusive (January 1, 2026), as the owner of all or part of the trust.

Source: SL 2026, ch 198, § 1.
S.D. Codified Laws § 55-13A-302 — SD Code / Title 55 / Chapter 13A / Section 55-13A-302
Apportionment of receipts and disbursements when decedent dies or income interest begins
Status: in_force

(a) A trustee shall allocate an income receipt or disbursement other than one to which § 55-13A-201(1) applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.

(b) A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins must be allocated to principal and the balance must be allocated to income.

(c) An item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this chapter. Distributions to shareholders or other owners from an entity to which § 55-13A-401 applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.

Source: SL 2007, ch 282, § 9.
S.D. Codified Laws § 55-13A-101 — SD Code / Title 55 / Chapter 13A / Section 55-13A-101
Short title
Status: in_force

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

Source: SL 2007, ch 282, § 1.
S.D. Codified Laws § 55-2-22 — SD Code / Title 55 / Chapter 2 / Section 55-2-22
Fiduciary duty to determine that substituted property is of equivalent value
Status: in_force

Notwithstanding the terms of a trust instrument, if a settlor has a power to substitute property of equivalent value, a trustee has a fiduciary duty to determine that the substituted property is of equivalent value, prior to allowing the substitution.

Source: SL 2009, ch 252, § 21.
S.D. Codified Laws § 55-1-26 — SD Code / Title 55 / Chapter 1 / Section 55-1-26
Judicial foreclosure of beneficial interests, powers of appointment, and reserved powers prohibited--Creditors may not reach powers of appointment or remainder interests
Status: in_force

Regardless of whether or not a trust contains a spendthrift provision:

(1) No beneficial interest, power of appointment, or reserved power in a trust may be judicially foreclosed;

(2) No creditor may reach a power of appointment or a remainder interest at the trust level. The creditor shall wait until the funds are distributed before the creditor may reach the funds; and

(3) No power of appointment is property or an interest in property.

For purposes of this section, power of appointment is held by a person to whom a power has been given, not the settlor.

Source: SL 2007, ch 280, § 3; SL 2009, ch 252, § 3; SL 2016, ch 231, § 12.
S.D. Codified Laws § 55-16-16 — SD Code / Title 55 / Chapter 16 / Section 55-16-16
Avoidance of qualified disposition
Status: in_force

A qualified disposition is avoided only to the extent necessary to satisfy the transferor's debt to the creditor at whose instance the disposition had been avoided, together with such costs, including attorney's fees, as the court may allow. If any qualified disposition is avoided as provided in this section, then:

(1) If the court is satisfied that a qualified person has not acted in bad faith in accepting or administering the property that is the subject of the qualified disposition:

(a) Such qualified person has a first and paramount lien against the property that is the subject of the qualified disposition in an amount equal to the entire cost, including attorney's fees, properly incurred by such qualified person in the defense of the action or proceedings to avoid the qualified disposition. It is presumed that such qualified person did not act in bad faith merely by accepting such property; and

(b) The qualified disposition is avoided subject to the proper fees, costs, preexisting rights, claims, and interests of such qualified person, and of any predecessor qualified person that has not acted in bad faith; and

(2) If the court is satisfied that a beneficiary of a trust has not acted in bad faith, the avoidance of the qualified disposition is subject to the right of such beneficiary to retain any distribution made upon the exercise of a trust power or discretion vested in the qualified person or qualified persons of such trust, which power or discretion was properly exercised prior to the creditor's commencement of an action to avoid the qualified disposition. It is presumed that the beneficiary, including a beneficiary who is also a transferor of the trust, did not act in bad faith merely by creating the trust or by accepting a distribution made in accordance with the terms of the trust.

Source: SL 2005, ch 261, § 16.
S.D. Codified Laws § 55-4-11 — SD Code / Title 55 / Chapter 4 / Section 55-4-11
Corporate trustee depositing trust funds with self--Interest
Status: in_force

A corporate trustee which is subject to regulation and supervision by state or federal authorities may deposit with itself trust funds which are being held necessarily pending investment, distribution, or the payment of debts, provided it pays into the trust for such deposit such interest as it is required by statute to pay on uninvested trust funds, or, if there be no such statute, the same rate of interest it pays upon similar nontrust deposits, and maintains in its trust department as security for all such deposits a separate fund consisting of securities legal for trust investments and at all times equal in total market value to the amount of the deposits. But no such security shall be required to the extent that the deposit is insured or given a preference by any state or federal law.

Source: SL 1943, ch 308, § 4; SDC Supp 1960, § 59.0504 (1).
S.D. Codified Laws § 55-15-1 — SD Code / Title 55 / Chapter 15 / Section 55-15-1
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Disinterested person," any person who is not a related or subordinate party, as defined in 26 U.S.C. § 672(c) , as amended and in effect on January 1, 2023, with respect to the person then acting as trustee of the trust and excludes the trustor of the trust and any interested trustee;

(2) "Income trust," any trust, created by either an inter vivos or a testamentary instrument, which directs or permits the trustee to distribute the net income of the trust to one or more persons, whether at fixed intervals or from time to time, either in fixed proportions or in amounts or proportions determined by the trustee. However, no trust that otherwise is an income trust may qualify pursuant to this subdivision, if it is subject to taxation under 26 U.S.C. § 2001 or 26 U.S.C. § 2501, as amended and in effect on January 1, 2023, until the expiration of the period for filing the return therefor (including extensions);

(3) "Interested distributee," any person to whom distributions of income or principal can currently be made who has the power to remove the existing trustee and designate as successor a person who may be a related or subordinate party, as defined in 26 U.S.C. § 672(c), as amended and in effect on January 1, 2023, with respect to such distributee;

(4) "Interested trustee:"

(a) Any individual trustee to whom the net income or principal of the trust can currently be distributed or would be distributed if the trust were then to terminate and be distributed;

(b) Any trustee who may be removed and replaced by an interested distributee;

(c) Any individual trustee whose legal obligation to support a beneficiary may be satisfied by distributions of income and principal of the trust; or

(d) Any of the above;

(5) "Total return unitrust," any income trust which has been converted under and meets the provisions of this chapter;

(6) "Trustee," all persons acting as trustee of the trust, except where expressly noted otherwise, whether acting in their discretion or on the direction of one or more persons acting in a fiduciary capacity;

(7) "Trustor," any individual who created an inter vivos or a testamentary trust;

(7A) "Unitrust," a trust, the terms of which require or permit distribution of a unitrust amount, without regard to whether the trust has been converted to a unitrust in accordance with this chapter or whether the trust is established by express terms of the governing instrument;

(8) "Unitrust amount," an amount equal to a percentage of a unitrust's assets that may or are required to be distributed to one or more beneficiaries annually in accordance with the terms of the unitrust. The unitrust amount may be determined by reference to the net fair market value of the unitrust's assets as of a particular date each year or as an average determined on a multiple year basis;

(9) "Current valuation year," the accounting period of the trust for which the unitrust amount is being determined;

(10) "Prior valuation year," each of the two accounting periods of the trust immediately preceding the current valuation year;

(11) "I.R.C.," the Internal Revenue Code (26 U.S.C. section 1, et seq.); and

(12) "Net income," the amount of income of the trust for the taxable year described in 26 U.S.C. § 643(b), as amended and in effect on January 1, 2023, as income when not preceded by the words, taxable, distributable net, undistributed net, or gross, otherwise known as the trust accounting income of a trust.

Source: SL 2002, ch 225, § 1; SL 2009, ch 252, § 45; SL 2023, ch 161, § 12.
S.D. Codified Laws § 55-4-50 — SD Code / Title 55 / Chapter 4 / Section 55-4-50
Co-trustee's inability or failure to perform
Status: in_force

If a co-trustee is unable to perform duties because of absence, illness, disqualification under other law, or other incapacity, or fails to perform duties due to inaction or neglect, and action is necessary or appropriate under the circumstances to achieve the purposes of the trust or to avoid injury to the trust property, the remaining co-trustee or a majority of the remaining co-trustees may act for the trust.

Source: SL 2008, ch 257, § 12.
S.D. Codified Laws § 55-2-11 — SD Code / Title 55 / Chapter 2 / Section 55-2-11
Liability for acts of cotrustee
Status: in_force

A trustee is responsible for the wrongful acts of a cotrustee to which he consented or which by his negligence he enabled the latter to commit, but for no others.

Source: SDC 1939, § 59.0116.
S.D. Codified Laws § 55-13A-505 — SD Code / Title 55 / Chapter 13A / Section 55-13A-505
Income taxes
Status: in_force

(a) A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.

(b) A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.

(c) A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:

(1) From income to the extent that receipts from the entity are allocated only to income;

(2) From principal to the extent that receipts from the entity are allocated only to principal;

(3) Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and

(4) From principal to the extent that the tax exceeds the total receipts from the entity.

(d) After applying subsections (a) through (c), the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.

Source: SL 2007, ch 282, § 30; SL 2009, ch 252, § 36.
S.D. Codified Laws § 55-3-43 — SD Code / Title 55 / Chapter 3 / Section 55-3-43
South Dakota investments defined
Status: in_force

For the purposes of § 55-3-39 , the term, South Dakota investments, means real property located in South Dakota, any equity or debt securities of a corporation, partnership, or limited liability company organized under the laws of South Dakota or having its headquarters in South Dakota, debt securities of the State of South Dakota or any of its subdivisions, or any of its instrumentalities.

Source: SL 1998, ch 282, § 24.
S.D. Codified Laws § 55-1-47 — SD Code / Title 55 / Chapter 1 / Section 55-1-47
Extrinsic evidence not admissible to establish settlor's intent concerning no contest clause
Status: in_force

A no contest clause shall be construed to carry out the settlor's intent. Except to the extent the no contest clause in the trust is vague or ambiguous, extrinsic evidence is not admissible to establish the settlor's intent concerning the no contest clause. The provisions of this section do not prohibit such evidence from being admitted for any other purpose authorized by law.

Source: SL 2012, ch 233, § 9.
S.D. Codified Laws § 55-1A-9.1 — SD Code / Title 55 / Chapter 1A / Section 55-1A-9.1
Affiliated investments
Status: in_force

(a) As used in this section:

(1) "Investment" means any security as defined in § 2(a)(1) of the Securities Act of 1933, any contract of sale of a commodity for future delivery within the meaning of § 2(I) of the Commodity Exchange Act, or any other asset permitted for trustee accounts pursuant to the terms of this title or by the terms of the governing instrument, including by way of illustration and not limitation, individual portfolios of investment holdings, shares or interests in a private investment fund (including a private investment fund organized as a limited partnership, limited liability company, trust or other form, a statutory or common law business trust, or a real estate investment trust), joint venture or other general or limited partnership, or an open-end or closed-end management type investment company or investment trust registered, unregistered, or exempt from registration under the Investment Company Act of 1940;

(2) "Affiliate" means any corporation or other entity that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with the trustee;

(3) "Affiliated investment" means an investment for which the trustee or an affiliate of the trustee acts as investment adviser, sponsor, administrator, distributor, placement agent, underwriter, broker, custodian, transfer agent, registrar or in any other capacity for which it receives or has received a fee or commission from such investment or an investment acquired or disposed of in a transaction for which the trustee or an affiliate of the trustee receives or has received a fee or commission;

(4) "Fee or commission" means compensation paid to a trustee or an affiliate thereof on account of its services to or on behalf of an investment, including by way of illustration and not limitation, advisory fees, management fees, brokerage fees, service fees, special performance fees, profit allocations, and expense reimbursements.

(b) In the absence of an express prohibition in the trust instrument, a trustee may purchase, sell, hold or otherwise deal with an affiliate or an interest in an affiliated investment and, upon satisfaction of the conditions stated in subsection (c) of this section, such trustee may receive trustee compensation from such account at the same rate as the trustee would otherwise be entitled to be compensated.

(c) A trustee seeking compensation pursuant to subsection (b) of this section shall disclose to those beneficiaries, as defined in § 55-2-13 , all fees, commissions, compensation or other benefits and profits paid or to be paid by the account, or received or to be received by an affiliate arising from such affiliated investment. The disclosure required under this subsection may be given either in a copy of the prospectus or any other disclosure document prepared for the affiliated investment under federal or state securities laws or in a written summary that includes all fees, commissions, compensation or other benefits and profits received or to be received by the trustee or any affiliate of the trustee and an explanation of the manner in which such fees, commissions, compensation or other benefits and profits are calculated (either as a percentage of the assets invested or by some other method). Such disclosure shall be made at least annually unless there has been no increase in the rate at which such fees or commissions are calculated since the most recent disclosure. Notwithstanding the foregoing provisions of this subsection, no such disclosure is required if:

(i) The governing instrument or a court order expressly authorizes the trustee to invest the trust account in affiliated investments or otherwise deal with an affiliate or an interest in an affiliated investment; or

(ii) The directed trustee is acting at the direction of an investment trust advisor pursuant to chapter 55-1B .

(d) A trustee that has complied with subsection (c) of this section (whether by making the applicable disclosure or by relying on the terms of a governing instrument or court order) shall have full authority to administer an affiliated investment (including the authority to vote proxies thereon) without regard to the affiliation between the trustee and the investment.

(e) If the recipients of information regarding the trust's existence have been restricted, eliminated, or modified pursuant to § 55-2-13 , then the notification described in subsection (c) is subject to such restriction, modification, or elimination.

Source: SL 2007, ch 247, § 7; SL 2009, ch 252, § 12; SL 2014, ch 226, § 19; SL 2015, ch 240, § 16.
S.D. Codified Laws § 55-3-18 — SD Code / Title 55 / Chapter 3 / Section 55-3-18
Survivorship between cotrustees
Status: in_force

On the death, renunciation, or discharge of one of several cotrustees, the trust survives to the others.

Source: SDC 1939, § 59.0219.
S.D. Codified Laws § 55-1B-8 — SD Code / Title 55 / Chapter 1B / Section 55-1B-8
Powers of trust protector incorporated by reference in will or trust instrument
Status: in_force

Any of the powers enumerated in § 55-1B-6 , as they exist at the time of the signing of a will by a testator or at the time of the signing of a trust instrument by a trustor, may be, by appropriate reference made thereto, incorporated in whole or in part in such will or trust instrument, by a clearly expressed intention of a testator of a will or trustor of a trust instrument.

Source: SL 2005, ch 260, § 4.
S.D. Codified Laws § 55-18-25 — SD Code / Title 55 / Chapter 18 / Section 55-18-25
Liability of notifier
Status: in_force

No notifier is liable for undertaking any additional notification or seeking additional consent than required by law or the governing instrument.

Source: SL 2017, ch 208, § 25.
S.D. Codified Laws § 55-12-17 — SD Code / Title 55 / Chapter 12 / Section 55-12-17
Annual financial report
Status: in_force

A perpetual cemetery, as defined in § 55-12-4 , or a perpetual cemetery corporation operating under chapter 47-29 shall file an annual financial report for the preceding fiscal year with the secretary of state by July thirty-first of each year on a form prescribed by the secretary of state if the cemetery has one hundred or more people buried in the cemetery.

Source: SL 2013, ch 232, § 2; SL 2014, ch 228, § 5, eff. Mar. 28, 2014.
S.D. Codified Laws § 55-1-5.1 — SD Code / Title 55 / Chapter 1 / Section 55-1-5.1
Express trust need not be for exclusive benefit of beneficiaries
Status: in_force

The terms of an express trust need not be for the exclusive benefit of its beneficiaries, whether or not the beneficiaries are ascertainable.

Source: SL 2017, ch 204, § 7.
S.D. Codified Laws § 55-8-11 — SD Code / Title 55 / Chapter 8 / Section 55-8-11
Liability of corporation or transfer agent for making or refusing transfer
Status: in_force

Nothing in this chapter relieves the corporation or transfer agent of any liability for making or refusing to make the transfer after it is put on notice pursuant to § 55-8-9 , unless it proceeds in the manner authorized in § 55-8-10 .

Source: SL 1961, ch 22, § 5 (1).
S.D. Codified Laws § 55-1-13 — SD Code / Title 55 / Chapter 1 / Section 55-1-13
Voluntary trustee--Assumption of relationship
Status: in_force

Everyone who voluntarily assumes a relation of personal confidence with another is deemed a trustee within the meaning of this chapter and chapter 55-2 not only as to the person who reposes such confidence, but also as to all persons of whose affairs he thus acquires information which was given to such person in the like confidence or over whose affairs he, by such confidence, obtains any control.

Source: SDC 1939, § 59.0103.
S.D. Codified Laws § 55-5-14 — SD Code / Title 55 / Chapter 5 / Section 55-5-14
Authorization language
Status: in_force

The following terms or comparable language in the investment powers and related provisions of a trust instrument, unless otherwise limited or modified by that instrument, authorize any investment or strategy permitted under this chapter: "investments permissible by law for investment of trust funds," "legal investment," "authorized investments," "using the judgment and care under the circumstances then prevailing that men of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to the speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital," "prudent man rule," "prudent person rule."

Source: SL 1995, ch 271, § 14.
S.D. Codified Laws § 55-1A-27 — SD Code / Title 55 / Chapter 1A / Section 55-1A-27
Payment of trust administration expenses
Status: in_force

A trustee may pay taxes, assessments, compensation of himself, and other expenses incurred in the collection, care, administration and protection of his trust.

Source: SL 1979, ch 336, § 27.
S.D. Codified Laws § 55-16-14 — SD Code / Title 55 / Chapter 16 / Section 55-16-14
Multiple qualified dispositions in same trust instrument
Status: in_force

If more than one qualified disposition is made by means of the same trust instrument:

(1) The making of a subsequent qualified disposition shall be disregarded in determining whether a creditor's claim with respect to a prior qualified disposition is extinguished as provided in § 55-16-10 ; and

(2) Any distribution to a beneficiary is deemed to have been made from the latest such qualified disposition.

Source: SL 2005, ch 261, § 14.
S.D. Codified Laws § 55-14A-10 — SD Code / Title 55 / Chapter 14A / Section 55-14A-10
Uniformity of application and construction
Status: in_force

In applying and construing this uniform act, consideration shall 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 283, § 10.
S.D. Codified Laws § 55-2-3 — SD Code / Title 55 / Chapter 2 / Section 55-2-3
Transactions involving interest of trustee adverse to beneficiary prohibited--Exceptions
Status: in_force

Neither a trustee nor any of his agents may take part in any transaction concerning the trust in which he or anyone for whom he acts as agent has an interest, present or contingent, adverse to that of his beneficiary, except as follows:

(1) When the beneficiary does have the capacity to contract and, with a full knowledge of the motives of the trustee and of all other facts concerning the transaction which might affect his own decision and without the use of any influence on the part of the trustee, permits the trustee to do so;

(2) When the beneficiary does not have the capacity to contract but the circuit court, upon the like information of the facts, grants the like permission;

(3) When some of the beneficiaries have the capacity to contract and some do not have it and the former grant permission for themselves and the circuit court for the latter in the manner above prescribed; or

(4) When the instrument creating the trust expressly grants permission to the trustee to buy, sell or lease property for the trust from or to the trust.

Source: SDC 1939, § 59.0108; SL 1981, ch 354, § 1.
S.D. Codified Laws § 55-1-22.6 — SD Code / Title 55 / Chapter 1 / Section 55-1-22.6
Enforcer of hybrid purpose trust
Status: in_force

In addition to § 55-1-21.4 , an enforcer may also not be a beneficiary of a hybrid purpose trust.

Source: SL 2018, ch 275, § 20.
S.D. Codified Laws § 55-4-26 — SD Code / Title 55 / Chapter 4 / Section 55-4-26
Tort liability of trust estate--Action against trustee, proof as to reimbursement unnecessary
Status: in_force

In an action against the trustee in his representative capacity under § 55-4-25 the plaintiff need not prove that the trustee could have secured reimbursement from the trust fund if he had paid the plaintiff's claim.

Source: SL 1943, ch 308, § 14; SDC Supp 1960, § 59.0514 (2).
S.D. Codified Laws § 55-3-29.1 — SD Code / Title 55 / Chapter 3 / Section 55-3-29.1
Defense of laches not available
Status: in_force

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

Source: SL 2009, ch 252, § 22.
S.D. Codified Laws § 55-7-9 — SD Code / Title 55 / Chapter 7 / Section 55-7-9
Deposit in bank to fiduciary's personal account--Bank's liability to principal
Status: in_force

If a fiduciary makes a deposit in a bank to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or of checks drawn by him upon an account in the name of his principal if he is empowered to draw checks thereon, or of checks payable to his principal and endorsed by him, if he is empowered to endorse such checks, or if he otherwise makes a deposit of funds held by him as fiduciary, the bank receiving such deposit is not bound to inquire whether the fiduciary is committing thereby a breach of his obligation as fiduciary; and the bank is authorized to pay the amount of the deposit or any part thereof upon the personal check of the fiduciary without being liable to the principal, unless the bank receives the deposit or pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in making such deposit or in drawing such check, or with knowledge of such facts that its action in receiving the deposit or paying the check amounts to bad faith.

Source: SL 1943, ch 19, § 9; SDC Supp 1960, § 6.0709.
S.D. Codified Laws § 55-15-8 — SD Code / Title 55 / Chapter 15 / Section 55-15-8
Unitrust amount as net income of trust--Allocation of capital gains to trust income
Status: in_force

Following the conversion of an income trust to a total return unitrust, the trustee:

(1) Shall treat the unitrust amount as the net income of the trust for purposes of determining the amount available, from time to time, for distributions from the trust; and

(2) May allocate to trust income for each taxable year of the trust (or portions thereof):

(a) Net short - term capital gain described in 26 U.S.C. § 1222(5), as amended and in effect on January 1, 2023, for such year (or portion thereof) but only to the extent that the amounts so allocated together with all other amounts allocate to trust income for such year (or portion thereof) does not exceed the unitrust amount for such year (or portion thereof); and

(b) Net long - term capital gain described in 26 U.S.C. § 1222(7), as amended and in effect on January 1, 2023, for such year (or portion thereof) but only to the extent that the amount so allocated together with all other amounts, including amounts described in subsection (a) above, allocated to trust income for such year (or portion thereof) does not exceed the unitrust amount for such year (or portion thereof).

Source: SL 2002, ch 225, § 8; SL 2023, ch 161, § 13.
S.D. Codified Laws § 55-4-22 — SD Code / Title 55 / Chapter 4 / Section 55-4-22
Exoneration or reimbursement of trustee for tort committed in administration of trust
Status: in_force

A trustee who has incurred personal liability for a tort committed in the administration of the trust is entitled to exoneration therefor from the trust property if he has not discharged the claim, or to be reimbursed therefor out of trust funds if he has paid the claim, if:

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

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

Source: SL 1943, ch 308, § 13; SDC Supp 1960, § 59.0513 (1).
S.D. Codified Laws § 55-1A-13 — SD Code / Title 55 / Chapter 1A / Section 55-1A-13
Leases by trustees
Status: in_force

A trustee may enter into a lease as lessor or lessee, with or without an option to purchase or renew, even if the term of the lease or renewal thereof, or of the option, extends beyond the term of the trust.

Source: SL 1979, ch 336, § 13.
S.D. Codified Laws § 55-13A-303 — SD Code / Title 55 / Chapter 13A / Section 55-13A-303
Apportionment when income interest ends
Status: in_force

(a) In this section, the term, undistributed income, means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.

(b) When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary's share of the undistributed income that is not disposed of under the terms of the trust unless the beneficiary has an unqualified power to revoke more than five percent of the trust immediately before the income interest ends. In the latter case, the undistributed income from the portion of the trust that may be revoked must be added to principal.

(c) When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the trustee shall prorate the final payment if and to the extent required by applicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, or other tax requirements.

Source: SL 2007, ch 282, § 10.
S.D. Codified Laws § 55-19-22 — SD Code / Title 55 / Chapter 19 / Section 55-19-22
Request for termination of user's account
Status: in_force

The fiduciary of a user may request a custodian to terminate the user's account. A request for termination must be in writing, in either physical or electronic form, and accompanied by:

(1) If the user is deceased, a certified copy of the death certificate of the user;

(2) A certified copy of the letter of appointment of the representative or a small estate affidavit, court order, power of attorney, or trust giving the fiduciary authority over the account; and

(3) If requested by the custodian, a number, username, address, or other unique subscriber or account identifier assigned by the custodian to identify the user's account; evidence linking the account to the user; or a finding by the court that the user had a specific account with the custodian, identifiable by the information specified in this subdivision.

Source: SL 2017, ch 209, § 22.
S.D. Codified Laws § 55-1-21.1 — SD Code / Title 55 / Chapter 1 / Section 55-1-21.1
Termination of trust for care of animal
Status: in_force

Except as otherwise provided in the governing instrument, a trust described in subdivision 55-1-21(1) terminates when no living animal is covered by the trust.

Source: SL 2018, ch 275, § 4.
S.D. Codified Laws § 55-1-37 — SD Code / Title 55 / Chapter 1 / Section 55-1-37
Application of spendthrift provision
Status: in_force

A spendthrift provision applies to both distribution interests and remainder interests. A spendthrift provision is a material provision of a trust.

Source: SL 2007, ch 280, § 14; SL 2008, ch 257, § 5.
S.D. Codified Laws § 55-7-15 — SD Code / Title 55 / Chapter 7 / Section 55-7-15
Citation of uniform act
Status: in_force

Sections 55-7-2 to 55-7-15 , inclusive, may be cited as the Uniform Fiduciaries Act.

Source: SL 1943, ch 19, § 14; SDC Supp 1960, § 6.0714.
S.D. Codified Laws § 55-5A-1 — SD Code / Title 55 / Chapter 5A / Section 55-5A-1
Release of judgments or mortgages by foreign fiduciaries--Deeds to carry out real estate contracts--Court approval not required
Status: in_force

Judgments rendered by any court in the State of South Dakota, and mortgages belonging to an estate, trust, or person under conservatorship, may, without prior order of court, be released, discharged or assigned, in whole or in part as to any particular property, and deeds may be executed in performance of real estate contracts entered into before the creation of the estate, trust, or conservatorship, by any foreign fiduciary, receiver, referee, or by any other person acting in a fiduciary capacity appointed by a court of record of any foreign state or country, if no fiduciary, receiver or referee has been appointed and qualified in this state. Such release, satisfaction, discharge, assignment or deed may be made without any order of court in any manner, and by any instrument which would be valid and effective if made by a like officer qualified under the laws of this state.

Source: SL 1976, ch 179, § 1; SL 1993, ch 213, § 255.
S.D. Codified Laws § 55-9-7 — SD Code / Title 55 / Chapter 9 / Section 55-9-7
Restrictions deemed incorporated in instrument creating charitable trust or foundation
Status: in_force

Any will or trust instrument creating a trust which is a private foundation, charitable trust, or a split - interest trust and any other instrument governing the trustee of any such trust or the use, retention, or disposition of any of the income or property of such trust, shall be deemed to have incorporated within such will, trust instrument, or other governing instrument with the same effect as though such language were set forth verbatim in such will, trust instrument, or other governing instrument, the provisions set forth in §§ 55-9-8 to 55-9-12 , inclusive, with respect to such trust and the trustee thereof, and, except as the contrary is provided in §§ 55-9-13 and 55-9-14 , such provisions shall govern the administration and distribution of any such trust irrespective of any provisions of any applicable will, trust instrument, or other governing instrument, statute or law of this state to the contrary.

Source: SL 1972, ch 259, § 2.
S.D. Codified Laws § 55-8-9 — SD Code / Title 55 / Chapter 8 / Section 55-8-9
Claim of beneficial interest adverse to transfer of security--Written notice to corporation or transfer agent, contents
Status: in_force

A person asserting a claim of beneficial interest adverse to the transfer of a security pursuant to an assignment by a fiduciary may give the corporation or transfer agent written notice of the claim. The corporation or transfer agent is not put on notice unless the written notice identifies the claimant, the registered owner, and the issue of which the security is a part, provides an address for communications directed to the claimant and is received before the transfer.

Source: SL 1961, ch 22, § 5 (1).
S.D. Codified Laws § 55-12-2 — SD Code / Title 55 / Chapter 12 / Section 55-12-2
Classification of cemeteries
Status: in_force

All such persons, firms or organizations subject to the provisions of this chapter shall be, for the purposes hereof, designated either as "perpetual care cemeteries" or "nonperpetual care cemeteries."

Source: SL 1955, ch 97, § 2; SDC Supp 1960, § 11.19A02.
S.D. Codified Laws § 55-7-7 — SD Code / Title 55 / Chapter 7 / Section 55-7-7
Bank account in name of fiduciary--Check drawn by fiduciary--Bank's liability to principal
Status: in_force

If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized to pay the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name in which such deposit is entered, without being liable to the principal, unless the bank pays the check with actual knowledge that the fiduciary is committing a breach of his obligation as fiduciary in drawing the check or with knowledge of such facts that its action in paying the check amounts to bad faith. If, however, such a check is payable to the drawee bank and is delivered to it in payment of or as security for a personal debt of the fiduciary to it, the bank is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in drawing or delivering the check.

Source: SL 1943, ch 19, § 7; SDC Supp 1960, § 6.0707.
S.D. Codified Laws § 55-1-12 — SD Code / Title 55 / Chapter 1 / Section 55-1-12
Trustor, trustee, beneficiary, power of appointment, and person defined
Status: in_force

The person whose confidence creates a trust is called the trustor; the person in whom the confidence is reposed is called the trustee; and the person for whose benefit the trust is created is called the beneficiary. As used in this title, except as specifically provided in chapters 55-13 and 55-13 A, the term, beneficiary, means a person that has a present or future beneficial interest in a trust, vested or contingent. A person is not a beneficiary solely by reason of holding a power of appointment or by reason of the existence or exercise of a discretionary power described in § 55-1-36.1 with respect to the person. As used in this title, except as provided in § 55-1-26 , the term, power of appointment, means a power, including a withdrawal power as defined in § 55-1-24.2 , to direct the disposition of trust property, but does not include the authority of a trustee to make a distribution to a beneficiary. A power of appointment is held by the person to whom the power has been given and once granted to a person, is not capable of appropriation or of manual delivery. A power of appointment is a general power of appointment if it is exercisable in favor of the person holding the power, the person's estate, the person's creditors, or the creditors of the person's estate, whether or not the power is also exercisable in favor of others. A power of appointment is a nongeneral power of appointment if it is not a general power of appointment. A holder of a general or nongeneral power of appointment may not be deemed a fiduciary unless otherwise provided for in the trust instrument. As used in this chapter, the term, person, has the meaning set forth in § 55-4-1 .

Source: SDC 1939, § 59.0103; SL 1998, ch 282, § 40; SL 2015, ch 240, § 9; SL 2016, ch 231, § 9; SL 2021, ch 207, § 12.
S.D. Codified Laws § 55-10A-21 — SD Code / Title 55 / Chapter 10A / Section 55-10A-21
Accounting by and determination of liability of custodian
Status: in_force

A minor who has attained the age of fourteen years, the minor's guardian conservator, or other legal representative, an adult member of the minor's family, a transferor, or a transferor's legal representative may petition the court for an accounting by the custodian or the custodian's legal representative; or for a determination of responsibility, as between the custodial property and the custodian personally, for claims against the custodial property unless the responsibility has been adjudicated in an action under § 55-10A-18 , to which the minor or the minor's legal representative was a party.

A successor custodian may petition the court for an accounting by the predecessor custodian.

The court, in a proceeding under this chapter or in any other proceeding, may require or permit the custodian or the custodian's legal representative to account.

If a custodian is removed under § 55-10A-20 , the court shall require an accounting and order delivery of the custodial property and records to the successor custodian and the execution of all instruments required for transfer of the custodial property.

Source: SL 1986, ch 409, § 21; SL 1993, ch 213, § 257.
S.D. Codified Laws § 55-1-21.6 — SD Code / Title 55 / Chapter 1 / Section 55-1-21.6
Discretion of trustee of purpose trust
Status: in_force

Except as otherwise provided in the governing instrument, a trustee of a purpose trust is vested with full discretion in:

(1) Interpreting the purposes of the trust consistent with the terms of the governing instrument; and

(2) Applying, distributing, or expending principal and income to further the trust's purposes.

Source: SL 2018, ch 275, § 9.
S.D. Codified Laws § 55-19-19 — SD Code / Title 55 / Chapter 19 / Section 55-19-19
Fiduciary as authorized user for purposes of computer fraud or unauthorized access law
Status: in_force

A fiduciary acting within the scope of the fiduciary's duties is an authorized user of the property of the decedent, protected person, principal, or settlor for the purpose of any computer fraud or unauthorized computer access law.

Source: SL 2017, ch 209, § 19.
S.D. Codified Laws § 55-19-12 — SD Code / Title 55 / Chapter 19 / Section 55-19-12
Disclosure of contents of electronic communications 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 the content of an electronic communication sent or received by an original or successor user and carried, maintained, processed, received, or stored by the custodian in the account of the trust 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 that includes consent to disclosure of the content of electronic communications to the trustee;

(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, § 12.
S.D. Codified Laws § 55-1A-19 — SD Code / Title 55 / Chapter 1A / Section 55-1A-19
Voting stock or securities--Voting trust agreements
Status: in_force

A trustee may vote shares of stock or other securities held in trust, in person or by general or limited proxy, and he may enter into voting trust agreements on such terms and for such periods as he deems advisable.

Source: SL 1979, ch 336, § 19.
S.D. Codified Laws § 55-9-8 — SD Code / Title 55 / Chapter 9 / Section 55-9-8
Self-dealing by trustee prohibited
Status: in_force

The trustee of a trust described in § 55-9-7 shall not engage in any act of self - dealing which would give rise to any liability for the tax imposed by section 4941 (a) of the Internal Revenue Code.

Source: SL 1972, ch 259, § 2 (2).
S.D. Codified Laws § 55-1-38.1 — SD Code / Title 55 / Chapter 1 / Section 55-1-38.1
Classification of interest as support interest
Status: in_force

If a trust instrument containing the distribution language specifically provides that the trustee exercise discretion in a reasonable manner with regard to a discretionary interest, then notwithstanding any other provision of §§ 55-1-38 to 55-1-43 , inclusive, the distribution interest shall be classified as a support interest. A beneficiary's right to a distribution as well as a creditor's right regarding a beneficiary's support interest is governed by § 55-1-42 .

Source: SL 2009, ch 252, § 8.
S.D. Codified Laws § 55-1A-38 — SD Code / Title 55 / Chapter 1A / Section 55-1A-38
Trustee may perform necessary and appropriate acts
Status: in_force

A trustee may perform such other acts, which, in the judgment of the trustee, may be necessary or appropriate for the proper management, investment, and distribution of the trust estate.

Source: SL 1998, ch 282, § 37.
S.D. Codified Laws § 55-18-5 — SD Code / Title 55 / Chapter 18 / Section 55-18-5
Notice, service of process, and consent not required of certain persons
Status: in_force

Neither notice nor service of process on, nor consent to, any matter in any proceeding is required from:

(1) An unborn individual;

(2) An unascertained person;

(3) The potential appointee of a power of appointment;

(4) The potential taker in default of a general power of appointment;

(5) An uninterested beneficiary; and

(6) A person bound by a representative.

Notwithstanding subdivisions (1) and (2), if no interested beneficiary, or representative thereof, would otherwise receive notice or provide consent with respect to the matter in question, a representative of an unborn or unascertained person shall act pursuant to § 55-18-9 .

Notwithstanding subdivision (5), with respect to the matter in question, notice is required to, or consent is required from, an uninterested beneficiary who does not have a substantially identical interest with one or more interested beneficiaries.

Source: SL 2017, ch 208, § 5; SL 2018, ch 275, § 32.
S.D. Codified Laws § 55-7-11 — SD Code / Title 55 / Chapter 7 / Section 55-7-11
Negotiable instrument transferred by fiduciary
Status: in_force

If any negotiable instrument payable or endorsed to a fiduciary as such is endorsed by the fiduciary, or if any negotiable instrument payable or endorsed to his principal is endorsed by a fiduciary empowered to endorse such instrument on behalf of his principal, the endorsee is not bound to inquire whether the fiduciary is committing a breach of his obligation as fiduciary in endorsing or delivering the instrument, and is not chargeable with notice that the fiduciary is committing a breach of his obligation as fiduciary unless he takes the instrument with actual knowledge of such breach or with knowledge of such facts that his action in taking the instrument amounts to bad faith. If, however, such instrument is transferred by the fiduciary in payment of or as security for a personal debt of the fiduciary to the actual knowledge of the creditor, or is transferred in any transaction known by the transferee to be for the personal benefit of the fiduciary, the creditor or other transferee is liable to the principal if the fiduciary in fact commits a breach of his obligation as fiduciary in transferring the instrument.

Source: SL 1943, ch 19, § 4; SDC Supp 1960, § 6.0704.
S.D. Codified Laws § 55-4-19 — SD Code / Title 55 / Chapter 4 / Section 55-4-19
Action on contract against trustee in representative capacity--Execution against trust property--Intervention by beneficiary
Status: in_force

Whenever a trustee shall make a contract which is within his powers as trustee, or a predecessor trustee shall have made such a contract, and a cause of action shall arise thereon, the party in whose favor the cause of action has accrued may sue the trustee in his representative capacity, and any judgment rendered in such action in favor of the plaintiff shall be collectible by execution out of the trust property. In such an action the plaintiff need not prove that the trustee could have secured reimbursement from the trust fund if he had paid the plaintiff's claim. Any beneficiary, or in the case of charitable trusts the attorney general and any corporation which is a beneficiary or agency in the performance of such charitable trust, may intervene in such action and contest the right of the plaintiff to recover.

Source: SL 1943, ch 308, § 12; SDC Supp 1960, § 59.0512 (1), (2).
S.D. Codified Laws § 55-2-7 — SD Code / Title 55 / Chapter 2 / Section 55-2-7
Fraud against beneficiary of trust
Status: in_force

Every violation of the provisions of §§ 55-2-1 to 55-2-6 , inclusive, is a fraud against the beneficiary of the trust.

Source: SDC 1939, § 59.0112.
S.D. Codified Laws § 55-19-5 — SD Code / Title 55 / Chapter 19 / Section 55-19-5
Terms-of-service agreement
Status: in_force

This chapter does not change or impair the right of any custodian or user under a terms-of-service agreement to access and use digital assets of the user.

This chapter does not give a fiduciary or designated recipient any new or expanded rights other than those held by the user for whom, or for whose estate, the fiduciary or designated recipient acts or represents.

A fiduciary's or designated recipient's access to digital assets may be modified or eliminated by a user, by federal law, or by a terms-of-service agreement if the user has not provided direction under § 55-19-4 .

Source: SL 2017, ch 209, § 5.
S.D. Codified Laws § 55-10A-16 — SD Code / Title 55 / Chapter 10A / Section 55-10A-16
Use of custodial property
Status: in_force

A custodian may deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to the duty or ability of the custodian personally or of any other person to support the minor, or any other income or property of the minor which may be applicable or available for that purpose. On petition of an interested person or the minor if the minor has attained the age of fourteen years, the court may order the custodian to deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the court considers advisable for the use and benefit of the minor. A delivery, payment or expenditure under this section is in addition to, not in substitution for, and does not affect any obligation of a person to support the minor.

Source: SL 1986, ch 409, § 16.
S.D. Codified Laws § 55-11-3 — SD Code / Title 55 / Chapter 11 / Section 55-11-3
Contract to be in writing--Copies furnished depository and personal representative of contracting party--Clause concerning trust fund required
Status: in_force

A contract pursuant to § 55-11-1 shall be in writing and sufficient copies thereof shall be left with the depository pursuant to § 55-11-2 to comply with the provisions of this chapter, and a copy thereof shall also be furnished, upon request, to any personal representative of the estate of the decedent who contracted for his burial during his lifetime. The contract shall contain the following in twelve point bold type:

IF THIS CONTRACT IS PURCHASED FOR A GUARANTEED PRICE, NO LESS THAN EIGHTY-FIVE PERCENT OF ANY FUNDS RECEIVED UNDER THIS CONTRACT ARE REQUIRED BY LAW TO BE PLACED IN A FUNERAL TRUST FUND IN A DEPOSITORY DESCRIBED IN SDCL 55-11-2 , IN EITHER A REVOCABLE OR IRREVOCABLE TRUST. IF THIS CONTRACT IS NOT FOR A GUARANTEED PRICE, ONE HUNDRED PERCENT OF ANY FUNDS RECEIVED UNDER THIS CONTRACT ARE REQUIRED BY LAW TO BE PLACED IN A FUNERAL TRUST FUND IN A DEPOSITORY DESCRIBED IN SDCL 55-11-2 IN EITHER A REVOCABLE OR IRREVOCABLE TRUST. THIS CONTRACT, IF A REVOCABLE TRUST, MAY BE CANCELED AT ANY TIME UPON THIRTY DAYS WRITTEN NOTICE AND ONE HUNDRED PERCENT OF THE MONEY PAID INTO TRUST TOGETHER WITH ONE HUNDRED PERCENT OF ACCRUED TRUST INTEREST SHALL BE RETURNED TO THE CONTRACT PURCHASER.

Source: SL 1953, ch 496, § 1; SDC Supp 1960, § 27.1409; SL 1967, ch 104, § 1; SL 1981, ch 355, § 2; SL 1986, ch 408, § 3.
S.D. Codified Laws § 55-10A-13 — SD Code / Title 55 / Chapter 10A / Section 55-10A-13
Validity and effect of transfer
Status: in_force

The validity of a transfer made in a manner prescribed in this chapter is not affected by:

(1) Failure of the transferor to comply with § 55-10A-11 concerning possession and control;

(2) Designation of an ineligible custodian, except designation of the transferor in the case of property for which the transferor is ineligible to serve as custodian under § 55-10A-9 ; or

(3) Death or incapacity of a person nominated under § 55-10A-3 , or designated under § 55-10A-9 , as custodian or the disclaimer of the office by that person.

A transfer made pursuant to § 55-10A-9 , is irrevocable, and the custodial property is indefeasibly vested in the minor, but the custodian has all the rights, powers, duties and authority provided in this chapter and neither the minor nor the minor's legal representative has any right, power, duty or authority with respect to the custodial property except as provided in this chapter.

By making a transfer, the transferor incorporates in the disposition all the provisions of this chapter and grants to the custodian, and to any third person dealing with a person designated as custodian, the respective powers, rights and immunities provided in this chapter.

Source: SL 1986, ch 409, § 13.
S.D. Codified Laws § 55-10A-19 — SD Code / Title 55 / Chapter 10A / Section 55-10A-19
Liability to third persons
Status: in_force

A claim based on a contract entered into by a custodian acting in a custodial capacity, an obligation arising from the ownership or control of custodial property, or a tort committed during the custodianship, may be asserted against the custodial property by proceeding against the custodian in the custodial capacity, whether or not the custodian or the minor is personally liable therefor.

No custodian is personally liable:

(1) On a contract properly entered into in the custodial capacity unless the custodian fails to reveal that capacity and to identify the custodianship in the contract; or

(2) For an obligation arising from control of custodial property or for a tort committed during the custodianship unless the custodian is personally at fault.

No minor is personally liable for an obligation arising from ownership of custodial property or for a tort committed during the custodianship unless the minor is personally at fault.

Source: SL 1986, ch 409, § 19.
S.D. Codified Laws § 55-1A-25 — SD Code / Title 55 / Chapter 1A / Section 55-1A-25
Claims in favor of or against trust or trustee
Status: in_force

A trustee may pay, compromise, contest, submit to arbitration, or otherwise settle any and all claims in favor of or against his trust or himself as trustee.

Source: SL 1979, ch 336, § 25.
S.D. Codified Laws § 55-1-41 — SD Code / Title 55 / Chapter 1 / Section 55-1-41
Effect of spendthrift provision
Status: in_force

If the trust contains a spendthrift provision, no creditor may reach present or future mandatory distributions from the trust at the trust level. Moreover, no court may order a trustee to distribute past due mandatory distributions directly to a creditor.

Source: SL 2007, ch 280, § 18; SL 2009, ch 252, § 9.
S.D. Codified Laws § 55-1A-26 — SD Code / Title 55 / Chapter 1A / Section 55-1A-26
Release of claim or lien
Status: in_force

A trustee may release, in whole or in part, any claim or lien belonging to his trust.

Source: SL 1979, ch 336, § 26.
S.D. Codified Laws § 55-8-7 — SD Code / Title 55 / Chapter 8 / Section 55-8-7
Assignment of security by fiduciary--Corporation or transfer agent not charged with notice of records or documents
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 is not charged with notice of and is not bound to obtain or examine any court record or any recorded or unrecorded document relating to the fiduciary relationship or the assignment, even though the record or document is in its possession.

Source: SL 1961, ch 22, § 3 (3).
S.D. Codified Laws § 55-1-28 — SD Code / Title 55 / Chapter 1 / Section 55-1-28
Interest of beneficiary or others not reachable by creditors
Status: in_force

No creditor may reach an interest of a beneficiary or of any other person on the grounds that the beneficiary or other person holds, either alone or in conjunction with another person, either or both of the following:

(1) An unconditional or conditional power to remove a trustee; or

(2) An unconditional or conditional power to replace a trustee.

The powers to remove or replace a trustee are personal to the power holder. No court may order, direct, or otherwise compel a power holder to directly or indirectly exercise the power to remove or replace a trustee for the purpose of directly or indirectly satisfying, either in whole or in part, any claim or judgment against the power holder or a beneficiary.

The powers to remove or replace a trustee, whether exercisable alone or in conjunction with another person, are not a property interest.

No creditor may reach an interest of a beneficiary on the grounds that the beneficiary is also a trustee or a co-trustee and no court may foreclose against such an interest. No court may order, direct, or otherwise compel a distribution because the beneficiary is then serving as a trustee or co-trustee.

Source: SL 2007, ch 280, § 5; SL 2009, ch 252, § 4; SL 2013, ch 239, § 21.
S.D. Codified Laws § 55-19-4 — SD Code / Title 55 / Chapter 19 / Section 55-19-4
User direction for disclosure of digital assets
Status: in_force

Any user may utilize an online tool to direct a custodian to disclose or not to disclose to a designated recipient some or all of the user's digital assets, including the content of electronic communications. If the online tool allows the user to modify or delete a direction at all times, a direction regarding disclosure using an online tool overrides a contrary direction by the user in a will, trust, power of attorney, or other record.

If a user has not utilized an online tool to give direction under this section, or if the custodian has not provided an online tool, the user may allow for or prohibit in a will, trust, power of attorney, or any other record, disclosure to a fiduciary of some or all of the user's digital assets, including the content of electronic communications sent or received by the user.

A user's direction under this section overrides a contrary provision in any terms-of-service agreement that does not require the user to act affirmatively and distinctly from the user's assent to the terms of service agreement.

Source: SL 2017, ch 209, § 4.
S.D. Codified Laws § 55-1A-39 — SD Code / Title 55 / Chapter 1A / Section 55-1A-39
Disclaimer of powers by trustee--Time limit
Status: in_force

Any power granted to a trustee in any written trust instrument may be disclaimed by that trustee in the manner provided by law for disclaimers, but without regard to the time limits provided by law for disclaimers. Upon such disclaimer, the powers so disclaimed shall cease to exist as to that trustee.

Source: SL 1998, ch 282, § 39.
S.D. Codified Laws § 55-15-12 — SD Code / Title 55 / Chapter 15 / Section 55-15-12
Applicability of chapter
Status: in_force

This chapter shall be construed as pertaining to the administration of a trust and shall be available to any trust that is administered in South Dakota under South Dakota law unless (i) the governing instrument reflects an intention that the current beneficiary or beneficiaries are to receive an amount other than a reasonable current return from the trust, ii) the trust is a trust described in I.R.C. section 170(f)(2)(B), 6664(d), 1361(d), 2702(a)(3), or 2702(b), (iii) one or more persons to whom the trustee could distribute income have a power of withdrawal over the trust that is not subject to an ascertainable standard under I.R.C. section 2041 or 2514 or that can be exercised to discharge a duty of support he or she possesses, or (iv) the governing instrument expressly prohibits use of this chapter by specific reference to the chapter. A provision in the governing instrument that "The provisions of this chapter, or any corresponding provision of future law, may not be used in the administration of this trust" or similar words reflecting such intent are sufficient to preclude use of this chapter.

Source: SL 2002, ch 225, § 12.
S.D. Codified Laws § 55-13-18 — SD Code / Title 55 / Chapter 13 / Section 55-13-18
Application of chapter to existing trusts and estates
Status: in_force

The provisions of this chapter may not be utilized by any trust created after June 30, 2007, or by any decedent's estate based upon a will executed subsequent to June 30, 2007. Any trust or decedent's estate not otherwise prohibited by this section from utilizing this chapter may apply the provisions of this chapter to such trust or decedent's estate upon the making of an election as provided in § 55-13A-602 .

Source: SL 2007, ch 282, § 34.
S.D. Codified Laws § 55-10A-1 — SD Code / Title 55 / Chapter 10A / Section 55-10A-1
Definitions
Status: in_force

Terms used in this chapter mean:

(1) "Adult," a person who has attained the age of eighteen years;

(2) "Benefit plan," an employer's plan for the benefit of an employee or partner;

(3) "Broker," a person lawfully engaged in the business of effecting transactions in securities or commodities for the person's own account or for the account of others;

(4) "Conservator," a person appointed or qualified by a court to act as general, limited or temporary conservator of a minor's property or a person legally authorized to perform substantially the same functions;

(5) "Custodial property," any interest in property transferred to a custodian under this chapter and the income from and proceeds of that interest in property;

(6) "Custodian," a person so designated under § 55-10A-9 or a successor or substitute custodian designated under § 55-10A-18 ;

(7) "Financial institution," a bank, trust company, savings institution or credit union, chartered and supervised under state or federal law;

(8) "Legal representative," an individual's personal representative or conservator;

(9) "Member of the minor's family," the minor's parent, stepparent, spouse, grandparent, brother, sister, uncle or aunt, whether of the whole or half blood or by adoption;

(10) "Minor," a person who has not attained the age of eighteen years;

(11) "Personal representative," an executor, administrator, successor personal representative or special administrator of a decedent's estate or a person legally authorized to perform substantially the same functions;

(11A) "Qualified minor's trust," a trust, including a trust created by a custodian, of which a minor is the sole income beneficiary and that satisfies the requirements of Section 2503(c) of the Federal Internal Revenue Code of 1986 and the regulations implementing that section;

(12) "State," includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession subject to the legislative authority of the United States;

(13) "Transfer," a transaction that creates custodial property under § 55-10A-9 ;

(14) "Transferor," a person who makes a transfer under this chapter; and

(15) "Trust company," a financial institution, corporation or other legal entity, authorized to exercise general trust powers.

Source: SL 1986, ch 409, § 1; SL 1993, ch 213, § 256; SL 2008, ch 257, § 13.
S.D. Codified Laws § 55-1A-12 — SD Code / Title 55 / Chapter 1A / Section 55-1A-12
Grant or taking of option for disposition of assets
Status: in_force

A trustee may grant an option for the sale or other disposition of a trust asset, or take an option for the acquisition of any asset.

Source: SL 1979, ch 336, § 12.
S.D. Codified Laws § 55-3-5 — SD Code / Title 55 / Chapter 3 / Section 55-3-5
Trustee to follow declaration of trust--Modifications
Status: in_force

A trustee shall fulfill the purposes of the trust as declared at its creation, or as subsequently amended, and shall follow all the directions of the trustor given at that time, except as modified. For purposes of modifications by consent of all parties interested and modifications upon approval by the court, the provisions of chapter 55-18 apply to such modifications.

Source: SDC 1939, § 59.0204; SL 1993, ch 355, § 5; SL 2017, ch 208, § 32; SL 2021, ch 207, § 2.
S.D. Codified Laws § 55-4-51 — SD Code / Title 55 / Chapter 4 / Section 55-4-51
Certificate of trust furnished in lieu of copy of trust instrument or will that creates testamentary trust--Contents
Status: in_force

Instead of furnishing a copy of the trust instrument or a copy of a will that creates a testamentary trust to a person other than a beneficiary, one or more trustees may furnish to the person a certificate of trust signed by a trustee, settlor, grantor, or trustor containing the following:

(1) A statement that the trust exists, the current name of the trust if one has been given, any previous name of the trust if the name of the trust was changed, and the date the trust instrument or will was executed;

(2) The name of the settlor, grantor, trustor, testator, or testatrix;

(3) The name of each original trustee and the name and address of each trustee currently empowered to act under the trust instrument or will on the date of the execution of the certificate of trust;

(4) The applicable powers of the trustee and other provisions set forth in the trust instrument or will as are selected by the person signing the certificate of trust, including those powers authorizing the trustee to sell, convey, pledge, mortgage, lease, or transfer title to any interest in property held in the trust, together with a statement setting forth the number of trustees required by the provisions of the trust instrument or will to act;

(5) A statement that the trust is irrevocable or, if the trust is revocable, a statement to that effect and that the trust has not been revoked;

(6) A statement that the trust is not supervised by a court, or, if applicable, a statement that the trust is supervised by a court, and which statement also sets forth any restrictions imposed by the court on the trustee's ability to act as otherwise permitted by statute or the terms of the trust instrument or will;

(7) If applicable, a description of any property to be conveyed by the trustee;

(8) A statement that the trust has not been modified or amended in any manner that would cause the representations contained in the certificate of trust to be incorrect.

The person signing the certificate shall certify that the statements contained in the certificate are true and correct. The signature of the person signing the certificate shall be acknowledged or verified under oath before a notary public or other official authorized to administer oaths. A certificate of trust need not contain the dispositive terms of a trust.

Source: SL 2009, ch 252, § 24; SL 2010, ch 232, § 7; SL 2011, ch 212, § 15.
S.D. Codified Laws § 55-4-36 — SD Code / Title 55 / Chapter 4 / Section 55-4-36
Citation of chapter
Status: in_force

This chapter may be cited as the Uniform Trusts Act.

Source: SL 1943, ch 308, § 22; SDC Supp 1960, § 59.0522.
S.D. Codified Laws § 55-12-3 — SD Code / Title 55 / Chapter 12 / Section 55-12-3
Operation of perpetual care cemetery--Creation of perpetual care fund required
Status: in_force

Any such organization subject to the provisions of this chapter which is organized or commences business in the State of South Dakota after February 28, 1955, and desires to operate as a perpetual care cemetery shall, before selling or disposing of any interment space or lots, establish a minimum perpetual care and maintenance guarantee fund of twenty - five thousand dollars or one hundred dollars per burial space, whichever is less, in cash.

Source: SL 1955, ch 97, § 3; SDC Supp 1960, § 11.19A03; SL 1990, ch 389, § 1.
S.D. Codified Laws § 55-4-20 — SD Code / Title 55 / Chapter 4 / Section 55-4-20
Action on contract against trustee--Notice to beneficiaries
Status: in_force

No judgment shall be rendered in favor of the plaintiff in an action pursuant to § 55-4-19 unless he proves that within thirty days after the beginning of such action, or within such other time 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, or in the case of a charitable trust the attorney general and any corporation which is a beneficiary or agency in the performance of such charitable trust, of the existence and nature of the action. Such notice shall be given by mailing copies thereof in postpaid envelopes addressed to the parties to be notified at their last known addresses. The trustee shall furnish the plaintiff a list of the parties to be notified, 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, § 12; SDC Supp 1960, § 59.0512 (2).
S.D. Codified Laws § 55-17-6 — SD Code / Title 55 / Chapter 17 / Section 55-17-6
Qualified disposition in trust
Status: in_force

A transfer to a South Dakota special spousal trust may also be a qualified disposition in trust if the transfer complies with the provisions of chapter 55-16 .

Source: SL 2016, ch 231, § 34.
S.D. Codified Laws § 55-4-15 — SD Code / Title 55 / Chapter 4 / Section 55-4-15
Corporate trustee buying its own stock
Status: in_force

No corporate trustee, unless expressly authorized by the trust instrument, may purchase for a trust shares of its own stock, or its bonds, or other securities, or the stock, bonds, or other securities of an affiliate.

Source: SL 1943, ch 308, § 7; SDC Supp 1960, § 59.0507; SL 2006, ch 243, § 4.
S.D. Codified Laws § 55-1-24.2 — SD Code / Title 55 / Chapter 1 / Section 55-1-24.2
Withdrawal power
Status: in_force

A withdrawal power allows a person a right to withdraw all or some part of the trust property, whether from income or principal. The holder of a withdrawal power is not deemed to be the settlor of the trust by failing to exercise a withdrawal power or letting a withdrawal power lapse.

Source: SL 2011, ch 212, § 32; SL 2016, ch 231, § 11.
S.D. Codified Laws § 55-1-58 — SD Code / Title 55 / Chapter 1 / Section 55-1-58
Confidentiality of registration
Status: in_force

The registration shall be sealed and kept confidential except as provided below.

The settlor, a trustee, trust advisor, or trust protector may obtain a certified copy of the registration but no other person or entity, absent a court order, may view or obtain a copy of the trust registration.

The registration may be cancelled by the clerk of courts upon receipt of an instrument executed by the trustee and all current income and principal beneficiaries or upon receipt of a court order.

Source: SL 2017, ch 204, § 10.
S.D. Codified Laws § 55-13A-503 — SD Code / Title 55 / Chapter 13A / Section 55-13A-503
Transfers from income to principal for depreciation
Status: in_force

(a) In this section, the term, depreciation, means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year.

(b) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation:

(1) Of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;

(2) During the administration of a decedent's estate; or

(3) Under this section if the trustee is accounting under § 55-13A-403 for the business or activity in which the asset is used.

(c) An amount transferred to principal need not be held as a separate fund.

Source: SL 2007, ch 282, § 28.
S.D. Codified Laws § 55-18-21 — SD Code / Title 55 / Chapter 18 / Section 55-18-21
Limitations on trustee's authority to bind beneficiary
Status: in_force

Without diminishing the powers of a trustee over the affairs of the trust or trust property, a trustee may not bind a beneficiary of the trustee's trust except as provided in subdivisions 55-18-9(5), (9), (11), and (16).

Source: SL 2017, ch 208, § 21; SL 2019, ch 209, § 10.
S.D. Codified Laws § 55-18-4 — SD Code / Title 55 / Chapter 18 / Section 55-18-4
Conditions under which representative may not bind person represented
Status: in_force

Notwithstanding the provisions of § 55-18-3 , no representative may bind the person represented if, prior to the representative binding the person in the matter in question:

(1) The court finds that the person cannot be adequately represented pursuant to § 55-18-19 ;

(2) The representative refuses to act pursuant to § 55-18-11 ;

(3) The representative has been removed by a person with power to remove the representative; or

(4) The represented person notifies:

(a) The trustee;

(b) The notifier; and

(c) The representative, that the represented person will not be bound by the representative.

Source: SL 2017, ch 208, § 4.
S.D. Codified Laws § 55-3-24 — SD Code / Title 55 / Chapter 3 / Section 55-3-24
Modification or termination of trust--Notice to fiduciaries--Distribution of property
Status: in_force

An irrevocable trust may be modified or terminated by judicial action or by the written consent of all beneficiaries, if continuance of the trust on its existing terms is not necessary to carry out a material purpose. Whether or not continuance of the trust on its existing terms is necessary to carry out a material purpose, an irrevocable trust may be modified or terminated by the written consent of the trustor and all beneficiaries. Upon termination of a trust under this section, the trustee shall distribute the trust property in accordance with the trustor's probable intention or in any other manner as agreed by all the beneficiaries. No person is required to seek court affirmation of a nonjudicial settlement agreement made pursuant to this section. The provisions of chapter 55-18 apply to this section.

Thirty days prior to the effective date of a modification or termination of a trust under this section, the trustor or beneficiaries shall provide notice in writing of the modification or termination, including a copy of the modification or termination to all fiduciaries, as defined in subdivision 21-22-1 (3) serving as of the date of the notice. The modification or termination is effective no earlier than thirty days after the notice is given, unless the notice is waived.

Source: SL 1998, ch 282, § 2; SL 2004, ch 312, § 9; SL 2017, ch 208, § 33; SL 2019, ch 209, § 6; SL 2021, ch 207, § 1; SL 2025, ch 196, § 8.
S.D. Codified Laws § 55-13-6 — SD Code / Title 55 / Chapter 13 / Section 55-13-6
Corporate distributions
Status: in_force

(a) Corporate distributions of shares of the distributing corporation, including distributions in the form of a stock split or stock dividend, are principal. A right to subscribe to shares or other securities issued by the distributing corporation accruing to stockholders on account of their stock ownership and the proceeds of any sale of the right are principal.

(b) Except to the extent that the corporation indicates that some part of a corporate distribution is a settlement of preferred or guaranteed dividends accrued since the trustee became a stockholder or is in lieu of an ordinary cash dividend, a corporate distribution is principal if the distribution is pursuant to

(1) a call of shares;

(2) a merger, consolidation, reorganization, or other plan by which assets of the corporation are required by another corporation; or

(3) a total or partial liquidation of the corporation, including any distribution which the corporation indicates is a distribution in total or partial liquidation or any distribution of assets, other than cash, pursuant to a court decree or final administrative order by a government agency ordering distribution of the particular assets.

(c) Distributions made from ordinary income by a regulated investment company or by a trust qualifying and electing to be taxed under federal law as a real estate investment trust are income. All other distributions made by the company or trust, including distributions from capital gains, depreciation, or depletion, whether in the form of cash or an option to take new stock or cash or an option to purchase additional shares, are principal.

(d) Except as provided in subsections (a), (b), and (c), all corporate distributions are income, including cash dividends, distributions of or rights to subscribe to shares or securities or obligations of corporations other than the distributing corporation, and the proceeds of the rights or property distributions. Except as provided in subsections (b) and (c), if the distributing corporation gives a stockholder an option to receive a distribution either in cash or in its own shares, the distribution chosen is income.

(e) The trustee may rely upon any statement of the distributing corporation as to any fact relevant under any provision of this chapter concerning the source or character of dividends or distributions of corporate assets.

Source: SL 1984, ch 323, § 6.
S.D. Codified Laws § 55-1-6.1 — SD Code / Title 55 / Chapter 1 / Section 55-1-6.1
Implied trust may not prejudice rights of real property purchaser or encumbrancer
Status: in_force

No implied trust may prejudice the rights of a purchaser or encumbrancer of real property for value and without notice of the trust.

Source: SL 2017, ch 204, § 6.
S.D. Codified Laws § 55-2-14 — SD Code / Title 55 / Chapter 2 / Section 55-2-14
Duty to provide information regarding revocable trust and its administration
Status: in_force

A trustee of a revocable trust:

(1) Subject to subdivision 3 below, shall keep the settlor reasonably informed of the trust and its administration;

(2) Unless otherwise provided in the trust instrument, does not have a duty to inform a trust beneficiary of the trust and its administration, other than the settlor or, if the trustor is an incapacitated person, the trustor's designated agent;

(3) Unless otherwise provided in the trust instrument, if the trustee obtains actual knowledge that the settlor of a revocable trust is an incapacitated person and has no designated agent, the trustee may in its sole discretion keep each interested trust beneficiary, who, if the settlor were then deceased, would be a current trust beneficiary, reasonably informed of the trust and its administration. Notwithstanding the provisions of the trust instrument, upon good cause shown, the court may order the trustee to keep other beneficiaries reasonably informed of the trust and its administration.

Source: SL 2007, ch 247, § 9.
S.D. Codified Laws § 55-6-5 — SD Code / Title 55 / Chapter 6 / Section 55-6-5
Uniformity of interpretation
Status: in_force

This chapter shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it.

Source: SL 1941, ch 20, § 3; SDC Supp 1960, § 6.0903.
S.D. Codified Laws § 55-4-3 — SD Code / Title 55 / Chapter 4 / Section 55-4-3
Number of trustees for exercise of powers
Status: in_force

Unless it is otherwise provided by the trust instrument, or an amendment thereof, or by court order, any power vested in three or more trustees may be exercised by a majority of such trustees and any power vested in two trustees shall be exercised by both of such trustees.

Source: SL 1943, ch 308, § 11; SDC Supp 1960, § 59.0511 (1); SL 2011, ch 212, § 14.
S.D. Codified Laws § 55-4-59 — SD Code / Title 55 / Chapter 4 / Section 55-4-59
Attorney-client relationship with fiduciary--Duties to other interested persons
Status: in_force

Unless expressly provided otherwise in a written agreement, the creation of an attorney-client relationship between an attorney and a person serving as a fiduciary does not impose upon the attorney any duties or obligations to other persons interested in the estate, trust estate, or other fiduciary property, even though fiduciary moneys may be used to compensate the attorney for legal services rendered to the fiduciary, or even if a beneficiary is entitled to accountings or other information regarding the estate, trust estate, or fiduciary property.

Source: SL 2026, ch 198, § 5.
S.D. Codified Laws § 55-1-55 — SD Code / Title 55 / Chapter 1 / Section 55-1-55
Trust enforceable although not funded or without res, corpus, or assets
Status: in_force

A trust is valid and enforceable even though it may not be funded at a given time, or from time to time, or does not initially have any res or corpus or otherwise contain any asset of any nature. A trust is valid and enforceable even though its res is neither ascertainable nor identifiable at the time of the trust's creation. No trustee, trust protector, or trust advisor has any duty prior to the time a trust has a res, corpus, or any asset.

Source: SL 2016, ch 231, § 14.
S.D. Codified Laws § 55-18-8 — SD Code / Title 55 / Chapter 18 / Section 55-18-8
Notice to Department of Social Services
Status: in_force

The Department of Social Services shall be provided with notice in any proceeding in which an interested beneficiary of a trust may owe a debt to the department pursuant to § 28-6-23 . An interested beneficiary is not considered a person who may owe a debt to the department solely on account of the person's residence in this state.

Source: SL 2017, ch 208, § 8.
S.D. Codified Laws § 55-18-9 — SD Code / Title 55 / Chapter 18 / Section 55-18-9
Persons who may bind others
Status: in_force

Persons who may bind others are as follows:

(1) Except as provided in subdivision 55-18-20(2), a conservator may bind a minor or protected person;

(2) A guardian may bind the minor or protected person if no conservator of the minor or protected person has been appointed;

(3) A parent may bind the parent's minor or unborn child if no conservator or guardian for the child has been appointed;

(4) A person who has assumed responsibility for a minor child's care or custody may bind the child if no conservator or guardian for the child has been appointed and neither parent is living;

(5) A trustee responsible for the management of all or a significant portion of the estate of an incapacitated individual other than a minor may bind the individual if no conservator or guardian for the individual has been appointed;

(6) A custodian under chapter 55-10A or equivalent provisions of another jurisdiction's laws who is responsible for all or a significant portion of the estate of a minor may bind the minor if no conservator or guardian for the minor has been appointed;

(7) An individual who has assumed responsibility for an incapacitated individual other than a minor, including a spouse of an incapacitated individual, may bind the individual if no conservator or guardian for the individual has been appointed and no agent has authority to act with respect to the matter in question, but an individual who is an employee of any assisted living, hospital, surgery center, nursing home, adult foster care, adult day care, or any other custodial care institution where the incapacitated person is residing or receiving services may not act as a representative pursuant to this subdivision;

(8) Except as provided in subdivision 55-18-20(1), an agent having authority to act with respect to the matter in question may bind the principal if the principal is incapacitated or not reasonably available;

(9) When a trust is a beneficiary of a trust, the trustee of the trust which is a beneficiary may bind the trust and the beneficiaries thereof without regard to whether the trust has yet been funded or the trustee has begun acting as trustee;

(10) When a decedent's estate is a beneficiary of a trust, the personal representative of the estate may bind the estate and the persons interested in the estate;

(11) Except as provided in § 55-18-23 , a person designated in the governing instrument to represent another person or class of persons may bind that person or class of persons;

(12) Except as provided in § 55-18-23 , if a fiduciary or other person is authorized by the terms of the governing instrument to appoint a representative and the authorized fiduciary or other person appoints a representative in writing, the representative may bind the person or class of persons identified in the appointment;

(13) Unless otherwise adequately represented pursuant to the foregoing provisions of this section, a minor, incapacitated individual, unborn individual, or a person who is not reasonably available, may be bound by a person having a substantially identical interest with respect to the matter in question;

(14) A person described in subsection 55-18-1(9)(a) may bind beneficiaries described in subsection 55-18-1(9)(b) and (c), if, with respect to the matter in question:

(a) The person agrees in writing to serve as a representative for the represented beneficiary either with regard to a particular matter, for a particular period of time, generally in any matter or future matter, or for an indefinite period of time;

(b) The interests of the person are substantially identical to the interests of the represented beneficiary; and

(c) The person does not have a conflict of interest;

(15) A person described in subsection 55-18-1(9)(d) may bind beneficiaries described in subsection 55-18-1(9)(e);

(16) A court representative appointed pursuant to § 55-18-19 may bind the person that the representative represents; and

(17) Without diminishing the authority of an attorney to act on behalf of the attorney's client, an attorney representing a person may bind the person that the attorney represents within the scope of the attorney's representation.

When more than one class of persons may act as a representative, such as where persons may act under different subdivisions of this section, the notifier has discretion in selecting which class of representatives bind the person represented, except as otherwise provided in the governing instrument. The governing instrument may provide that representatives acting pursuant to subdivisions (11) and (12) may act to the exclusion of any other class or classes of representatives, in certain circumstances, or in all circumstances, other than representatives acting pursuant to subdivisions (l6) and (17).

Source: SL 2017, ch 208, § 9; SL 2018, ch 275, § 34.
S.D. Codified Laws § 55-14A-8 — SD Code / Title 55 / Chapter 14A / Section 55-14A-8
Application to existing institutional funds
Status: in_force

This chapter applies to institutional funds existing on or established after July 1, 2007. As applied to institutional funds existing on July 1, 2007, this chapter governs only decisions made or actions taken on or after that date. This chapter does not apply to any funds directly held or managed by a governmental agency.

Source: SL 2007, ch 283, § 8.
S.D. Codified Laws § 55-1B-7 — SD Code / Title 55 / Chapter 1B / Section 55-1B-7
Submission to court jurisdiction--Effect on trust advisor or trust protector
Status: in_force

By accepting an appointment to serve as a trust advisor or trust protector of a trust that is subject to the laws of this State, the trust advisor or the trust protector submits to the jurisdiction of the courts of South Dakota even if investment advisory agreements or other related agreements provide otherwise, and the trust advisor or trust protector may be made a party to any action or proceeding if issues relate to a decision or action of the trust advisor or trust protector.

Source: SL 1997, ch 280, § 7.
S.D. Codified Laws § 55-18-20 — SD Code / Title 55 / Chapter 18 / Section 55-18-20
Limitations on representation of settlor--Limitations on settlor's authority to bind beneficiary
Status: in_force

A settlor may be represented by a representative in amending, terminating, or revoking an inter vivos revocable trust only when the representative is:

(1) An agent under a written power of attorney when the settlor is incapacitated or not reasonably available and to the extent expressly authorized by the power of attorney with specific reference to the trust and expressly authorized by the terms of the governing instrument; or

(2) A conservator only to the extent authorized or approved by order of the court pursuant to § 29A-5-420 or equivalent provisions of another jurisdiction's laws.

In other respects, a settlor may be represented by a representative only pursuant to subdivisions 55-18-9(5), (11), (16), and (17) and pursuant to subdivision 55-18-9(1) to the extent authorized or approved by the court.

A settlor may not bind a beneficiary with respect to a trust termination pursuant to § 55-3-24 or 55-3-30 or a trust modification pursuant to § 55-3-24 or 55-3-30 where the ability to bind the beneficiary to the proposed trust modification would constitute a retained interest pursuant to 26 U.S.C. § 2036, as of January 1, 2017, or a revocable transfer pursuant to 26 U.S.C. § 2038 as of January 1, 2017.

Source: SL 2017, ch 208, § 20; SL 2018, ch 275, § 39.
S.D. Codified Laws § 55-10A-20 — SD Code / Title 55 / Chapter 10A / Section 55-10A-20
Renunciation, resignation, death, or removal of custodian--Designation of successor custodian
Status: in_force

Any person nominated under § 55-10A-3 or designated under § 55-10A-9 as custodian may decline to serve by delivering a valid disclaimer to the person who made the nomination or to the transferor or the transferor's legal representative. If the event giving rise to a transfer has not occurred and no substitute custodian able, willing and eligible to serve was nominated under § 55-10A-3 , the person who made the nomination may nominate a substitute custodian under § 55-10A-3 ; otherwise the transferor or the transferor's legal representative shall designate a substitute custodian at the time of the transfer, in either case from among the persons eligible to serve as custodian for that kind of property under § 55-10A-9 . The custodian so designated has the rights of a successor custodian.

A custodian at any time may designate a trust company or an adult other than a transferor under § 55-10A-4 , as successor custodian by executing and dating an instrument of designation before a subscribing witness other than the successor. If the instrument of designation does not contain or is not accompanied by the resignation of the custodian, the designation of the successor does not take effect until the custodian resigns, dies, becomes incapacitated or is removed.

A custodian may resign at any time by delivering written notice to the minor if the minor has attained the age of fourteen years and to the successor custodian and by delivering the custodial property to the successor custodian.

If a custodian is ineligible, dies or becomes incapacitated without having effectively designated a successor and the minor has attained the age of fourteen years, the minor may designate as successor custodian an adult member of the minor's family, a conservator of the minor or a trust company. If the minor has not attained the age of fourteen years or fails to act within sixty days after the ineligibility, death or incapacity, the conservator of the minor becomes successor custodian. If the minor has no conservator or the conservator declines to act, the transferor, the legal representative of the transferor or of the custodian, an adult member of the minor's family or any other interested person may petition the court to designate a successor custodian.

A custodian who declines to serve or resigns, or the legal representative of a deceased or incapacitated custodian, as soon as practicable, shall put the custodial property and records in the possession and control of the successor custodian. The successor custodian by action may enforce the obligation to deliver custodial property and records and becomes responsible for each item as received.

A transferor, the legal representative of a transferor, an adult member of the minor's family, a guardian of the person of the minor, the conservator of the minor, or the minor if the minor has attained the age of fourteen years may petition the court to remove the custodian for cause and to designate a successor custodian other than a transferor under § 55-10A-4 , or to require the custodian to give appropriate bond.

Source: SL 1986, ch 409, § 20.
S.D. Codified Laws § 55-12-5 — SD Code / Title 55 / Chapter 12 / Section 55-12-5
Previously existing cemetery becoming a perpetual care cemetery--Creation and maintenance of perpetual care fund
Status: in_force

Any such organization subject to the provisions of this chapter which was organized and engaged in business prior to February 28, 1955, shall be a perpetual care cemetery if it shall at all times comply with the requirements of a perpetual care cemetery as set forth in § 55-12-4 . Trust funds set aside under § 47-29-22 shall be administered under this chapter.

Source: SL 1955, ch 97, § 4; SDC Supp 1960, § 11.19A04.
S.D. Codified Laws § 55-12-10 — SD Code / Title 55 / Chapter 12 / Section 55-12-10
Nonperpetual care cemetery sign--Requirements as to display
Status: in_force

Each nonperpetual care cemetery shall post in a conspicuous place in the office or offices where sales are conducted a legible sign stating: "This is a nonperpetual care cemetery." The lettering of this sign shall be of suitable size so it is easily read at a distance of fifty feet.

Source: SL 1955, ch 97, § 5; SDC Supp 1960, § 11.19A05.
S.D. Codified Laws § 55-17-14 — SD Code / Title 55 / Chapter 17 / Section 55-17-14
Unenforceable trusts
Status: in_force

A South Dakota special spousal trust executed during marriage is not enforceable if the spouse against whom enforcement is sought proves that:

(1) The trust was unconscionable when made;

(2) The spouse against whom enforcement is sought did not execute the South Dakota special spousal trust agreement voluntarily; or

(3) Before execution of the South Dakota special spousal trust agreement, the spouse against whom enforcement is sought:

(a) Was not given a fair and reasonable disclosure of the property and financial obligations of the other spouse;

(b) Did not voluntarily sign a written waiver expressly waiving right to disclosure of the property and financial obligations of the other spouse beyond the disclosure provided; and

(c) Did not have notice of the property or financial obligations of the other spouse.

Whether a South Dakota special spousal trust is unconscionable is determined by a court as a matter of law.

Source: SL 2016, ch 231, § 42.