reglab/housing_qa huggingface dataset:
SD Codified L § 55-1-27 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-27 - Certain remainder interests not property interests.

55-1-27. Certain remainder interests not property interests.Although a remainder interest may be an enforceable right, where it is not absolutely certain based on the language of the trust that the remainder interest will be distributed within one year, it may not be classified as a property interest. This section does not affect eligibility for any public assistance program administered by the Department of Social Services pursuant to §28-1-1. Source: SL 2007, ch 280, §4.
SD Codified L § 55-1-28 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-28 - Interest of beneficiary or others not reachable by creditors.

55-1-28. Interest of beneficiary or others not reachable by creditors.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.
SD Codified L § 55-1-29 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-29 - Trust property not subject to personal obligations of trustee.

55-1-29. Trust property not subject to personal obligations of trustee.Trust property is not subject to the personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. Source: SL 2007, ch 280, §6.
SD Codified L § 55-1-30 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-30 - Distribution and remainder interests not relevant to division of marital property.

55-1-30. Distribution and remainder interests not relevant to division of marital property.Neither a distribution interest nor a remainder interest are relevant in the equitable division of marital property. Source: SL 2007, ch 280, §7; SL 2008, ch 257, §4.
SD Codified L § 55-1-31 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-31 - Resources of settlor's spouse to be considered in making distribution from support trust--Other beneficiary's resources need not be considered.

55-1-31. Resources of settlor's spouse to be considered in making distribution from support trust--Other beneficiary's resources need not be considered.Unless otherwise provided in the trust, if the settlor's spouse is named as beneficiary, the settlor's spouse is still living, and the trust is classified as a support trust, then the trustee shall consider the resources of the settlor's spouse, including the settlor's obligation of support, prior to making a distribution. In all other cases, unless otherwise provided in the trust, the trustee need not consider the beneficiary's resources in determining whether a distribution should be made. Source: SL 2007, ch 280, §8; SL 2009, ch 252, §5; SL 2011, ch 212, §33.
SD Codified L § 55-1-32 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-32 - Factors which are not dominion and control over trust.

55-1-32. Factors which are not dominion and control over trust.In the event that a party challenges a settlor or a beneficiary's influence over a trust, none of the following factors, alone or in combination, may be considered dominion and control over a trust:(1)The settlor or a beneficiary serving as a trustee or a co-trustee as described in §55-1-28;(2)The settlor or a beneficiary holds an unrestricted power to remove or replace a trustee;(3)The settlor or a beneficiary is a trust administrator, a general partner of a partnership, a manager of a limited liability company, an officer of a corporation, or any other managerial function of any other type of entity, and part or all of the trust property consists of an interest in the entity;(4)A person related by blood or adoption to the settlor or a beneficiary is appointed as trustee;(5)The settlor's or a beneficiary's agent, accountant, attorney, financial advisor, or friend is appointed as trustee;(6)A business associate is appointed as a trustee;(7)A beneficiary holds any power of appointment over any or all of the trust property;(8)The settlor holds a power to substitute property of equivalent value;(9)The trustee may loan trust property to the settlor for less than a full and adequate rate of interest or without adequate security;(10)The distribution language provides any discretion; (11)The trust has only one beneficiary eligible for current distributions; or(12)The beneficiary serving as a trust advisor for investments under subdivision 55-1B-1(6). Source: SL 2007, ch 280, §9; SL 2009, ch 252, §6; SL 2012, ch 233, §20.
SD Codified L § 55-1-33 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-33 - Factors which are insufficient evidence that settlor controls or is alter ego of trustee.

55-1-33. Factors which are insufficient evidence that settlor controls or is alter ego of trustee.Absent clear and convincing evidence, no settlor of an irrevocable trust may be deemed to be the alter ego of a trustee. The following factors by themselves or in combination are not sufficient evidence for a court to conclude that the settlor controls a trustee or is the alter ego of a trustee:(1)Any combination of the factors listed in §55-1-32;(2)Isolated occurrences where the settlor has signed checks, made disbursements, or executed other documents related to the trust as a trustee, when in fact the settlor was not a trustee;(3)Making any requests for distributions on behalf of beneficiaries;(4)Making any requests to the trustee to hold, purchase, or sell any trust property. Source: SL 2007, ch 280, §10.
SD Codified L § 55-1-35 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-35 - Trust declaration that beneficiary's interest subject to spendthrift trust--Payment of beneficiary expenses.

55-1-35. Trust declaration that beneficiary's interest subject to spendthrift trust--Payment of beneficiary expenses.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.
SD Codified L § 55-1-36 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-36 - Satisfaction of claims of settlor's creditors from trust estate if settlor is beneficiary.

55-1-36. Satisfaction of claims of settlor's creditors from trust estate if settlor is beneficiary.If a settlor is also a beneficiary of the trust, and the transfer is a qualified transfer pursuant to chapter 55-16, the provisions of §§55-1-24 to 55-1-43, inclusive, also apply. Conversely, if the settlor is a beneficiary of the trust and the transfer is not a qualified transfer pursuant to chapter 55-16, a provision restraining the voluntary or involuntary transfer of the settlor's beneficial interest does not prevent the settlor's creditors from satisfying claims from the settlor's interest in the trust estate. However, a settlor's creditors may not satisfy their respective claims from an irrevocable trust if:(1)The settlor has retained a beneficial interest that is contingent upon surviving the settlor's spouse such as an interest in an inter vivos marital deduction trust in which the interest of the settlor's spouse is treated as qualified terminable interest property under §2523(f) of the Internal Revenue Code of 1986 (26 U.S.C. §2523(f)), as amended, an interest in an inter vivos marital deduction trust that is treated as a general power of appointment trust for which a marital deduction would be allowed under §2523(a) and (e) of the Internal Revenue Code of 1986 (26 U.S.C. §2523(a) and (e)), as amended, and an interest in an inter vivos trust commonly known as a credit shelter trust that used all or a portion of the settlor's unified credit under §2505 of the Internal Revenue Code (26 U.S.C. §2505), as amended;(2)The settlor may be named, by someone other than the settlor, as an additional beneficiary or from a class of persons that includes the settlor; or(3)The settlor is a permissible object of the exercise of a power of appointment over trust property held by someone other than the settlor. Source: SL 2007, ch 280, §13; SL 2011, ch 212, §35; SL 2015, ch 240, §12; SL 2020, ch 206, § 4.
SD Codified L § 55-1-36.1 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-36.1 - Effect on creditor claims of trustee discretionary powers to pay taxes or make reimbursements for taxes.

55-1-36.1. Effect on creditor claims of trustee discretionary powers to pay taxes or make reimbursements for taxes.Regardless of whether a disposition is a qualified disposition pursuant to chapter 55-16, where a trustee is granted a discretionary power by the terms of the trust instrument, or any provision of law, to pay directly to any taxing authority, or to reimburse the person liable for, any tax imposed by a taxing authority on the person by reason of the person being treated as the owner of all or any portion of the trust property pursuant to §§671 to 678, inclusive, of the Internal Revenue Code of 1986, 26 U.S.C. §§671 to 678, inclusive, as of January 1, 2016, and the U.S. Treasury Regulations promulgated thereunder, as of January 1, 2016:(1)A creditor of the person shall not satisfy a claim from the property of the trust solely because of the existence or exercise of the discretionary power; and(2)The use of trust property to pay the tax shall not be deemed a distribution or transfer of trust property to the person for any purpose, and the amount paid from the trust to the taxing authority or to the person in reimbursement of the person's payment of the tax is not subject to the claims of a creditor of the person solely because of the existence or exercise of the discretionary power. Source: SL 2015, ch 240, §13; SL 2016, ch 231, §13.
SD Codified L § 55-1-37 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-37 - Application of spendthrift provision.

55-1-37. Application of spendthrift provision.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.
SD Codified L § 55-1-38 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-38 - Classification of distribution interest.

55-1-38. Classification of distribution interest.A distribution interest can be classified in three ways:(1)As a mandatory interest, which is a distribution interest, in which the timing of any distribution must occur within one year from the date the right to the distribution arises, and the trustee has no discretion in determining whether a distribution shall be made or the amount of such distribution;(2)As a support interest, which is not a mandatory interest but still contains mandatory language such as "shall make distributions" and is coupled with a standard capable of judicial interpretation; or(3)As a discretionary interest, which is any interest where a trustee has any discretion to make or withhold a distribution.A discretionary interest may be evidenced by permissive language such as "may make distributions" or it may be evidenced by mandatory distribution language that is negated by the discretionary language of the trust, such as "the trustee shall make distributions in the trustee's sole and absolute discretion." An interest that includes mandatory distribution language such as "shall" but is subsequently qualified by discretionary distribution language shall be classified as a discretionary interest and not as a support or a mandatory interest. A discretionary interest is any interest that is not a mandatory or a support interest. Source: SL 2007, ch 280, §15; SL 2008, ch 257, §6; SL 2009, ch 252, §7.
SD Codified L § 55-1-38.1 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-38.1 - Classification of interest as support interest.

55-1-38.1. Classification of interest as support interest.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.
SD Codified L § 55-1-39 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-39 - Bifurcation of trust.

55-1-39. Bifurcation of trust.To the extent a trust contains any combination of a mandatory provision, a support provision, the trust shall be bifurcated as follows:(1)The trust shall be a mandatory interest only to the extent of the mandatory language;(2)The trust shall be a support interest only to the extent of such support language;(3)The remaining trust property shall be held as a discretionary interest;(4)A support interest that includes mandatory language such as "shall" but is subsequently qualified by discretionary language, shall be classified as a discretionary interest and not as a support interest. Source: SL 2007, ch 280, §16.
SD Codified L § 55-1-40 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-40 - Language resulting in classification of distribution interest.

55-1-40. Language resulting in classification of distribution interest.Although not the exclusive means to create a distribution interest, absent clear and convincing evidence to the contrary, the following language by itself results in the following classification of distribution interest:(1)Mandatory interest:(a)"All income shall be distributed to (named beneficiary)"; or(b)"One hundred thousand dollars a year shall be distributed to (named beneficiary)";(2)Support interest:(a)"The trustee shall make distributions for health, education, maintenance, and support";(3)Discretionary interest:(a)"The trustee, may, in the trustee's sole and absolute discretion make distributions for health, education, maintenance, and support";(b)"The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support";(c)"The trustee may make distributions for health, education, maintenance, and support";(d)"The trustee shall make distributions for health, education, maintenance, and support. The trustees may exclude any of the beneficiaries or may make unequal distributions among them";(e)"The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare. Source: SL 2007, ch 280, §17; SL 2008, ch 257, §7.
SD Codified L § 55-1-41 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-41 - Effect of spendthrift provision.

55-1-41. Effect of spendthrift provision.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.
SD Codified L § 55-1-42 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-42 - Mandatory or support interests.

55-1-42. Mandatory or support interests.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.
SD Codified L § 55-1-43 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-43 - Discretionary interests.

55-1-43. Discretionary interests.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.A reasonableness standard may not be applied to the exercise of discretion by the trustee with regard to a discretionary interest. Other than for the three circumstances listed in this subdivision, a court has no jurisdiction to review the trustee's discretion or to force a distribution.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.
SD Codified L § 55-1-44 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-44 - Action for fraudulent transfer of settlor's assets--Jurisdiction--Attorneys' fees and costs--Burden of proof.

55-1-44. Action for fraudulent transfer of settlor's assets--Jurisdiction--Attorneys' fees and costs--Burden of proof.Notwithstanding any other provision of law, no action of any kind, including an action to enforce a judgment entered by a court or other body having adjudicative authority, may be brought at law or in equity for an attachment or other provisional remedy against property that is the subject of a South Dakota trust or for avoidance of a transfer to a South Dakota trust unless the settlor's transfer of property was made with the intent to defraud that specific creditor. A court of this state has exclusive jurisdiction over an action brought under a claim for relief that is based on a transfer of property to a trust that is the subject of this section. A court of this state may award attorneys' fees and costs to the prevailing party in such an action. In any action described in this section, the burden to prove the matter by clear and convincing evidence is upon the creditor. Source: SL 2011, ch 212, §36; SL 2020, ch 206, § 5.
SD Codified L § 55-1-45 (2021)
2021 South Dakota Codified Laws|Title 55 - Fiduciaries and Trusts|Chapter 01 - Classification And Creation Of Trusts|Section 55-1-45 - Limitation of action for fraudulent transfer of settlor's assets.

55-1-45. Limitation of action for fraudulent transfer of settlor's assets.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.