reglab/statecodes huggingface dataset:
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 01B - Directed Trusts › Section 55-1B-6 - Powers and discretions of trust protector.

55-1B-6. Powers and discretions of trust protector.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 01B - Directed Trusts › Section 55-1B-7 - Submission to court jurisdiction--Effect on trust advisor or trust protector.

55-1B-7. Submission to court jurisdiction--Effect on trust advisor or trust protector.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 01B - Directed Trusts › Section 55-1B-8 - Powers of trust protector incorporated by reference in will or trust instrument.

55-1B-8. Powers of trust protector incorporated by reference in will or trust instrument.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 01B - Directed Trusts › Section 55-1B-9 - Investment trust advisor or distribution trust advisor provided for in trust instrument.

55-1B-9. Investment trust advisor or distribution trust advisor provided for in trust instrument.
A trust instrument governed by the laws of South Dakota may provide for a person to act as an investment trust advisor or a distribution trust advisor, respectively, with regard to investment decisions or discretionary distributions. Unless otherwise provided or restricted by the terms of the governing instrument, any person may simultaneously serve as a trust advisor and a trust protector.
Source:
SL 2005, ch 260, §5; SL 2017, ch 204, §16.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 01B - Directed Trusts › Section 55-1B-10 - Powers and discretions of investment trust advisor.

55-1B-10. Powers and discretions of investment trust advisor.
The powers and discretions of an investment trust advisor shall be as 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 investment trust advisor and are binding on any other person and any other interested party, fiduciary, and excluded fiduciary. In addition to the powers and discretions granted to the investment trust advisor in the governing instrument, the investment trust advisor may also exercise any of the following powers and discretions to the extent such exercise is not prohibited under the terms of the governing instrument:
(1)Direct the trustee with respect to the retention, purchase, sale, exchange, tender, or other transaction affecting the ownership thereof or rights therein of trust investments. These powers include the pledge or encumbrance of trust property, lending of trust assets, either secured or unsecured, at terms defined by the investment trust advisor to any party including beneficiaries of the trust and the investment and reinvestment of principal and income of the trust;
(2)Vote proxies for securities held in trust;
(3)Select one or more investment advisers, managers, or counselors, including the trustee, and delegate to them any of its powers;
(4)Direct the trustee with respect to any additional powers and discretions over investment and management of trust assets provided in the governing instrument;
(5)Direct the trustee as to the value of nonpublicly traded trust investments;
(6)Direct the trustee as to any investment or management power referenced in chapter 55-1A; and
(7)Exercise the powers granted to an investment trust advisor in §55-2-13.
Source:
SL 2005, ch 260, §6; SL 2012, ch 233, §6; SL 2014, ch 226, §17; SL 2020, ch 206, § 9.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 01B - Directed Trusts › Section 55-1B-11 - Powers and discretions of distribution trust advisor.

55-1B-11. Powers and discretions of distribution trust advisor.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 01B - Directed Trusts › Section 55-1B-12 - Powers and discretions of family advisor.

55-1B-12. Powers and discretions of family advisor.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-1 - Trustee's obligation of good faith.

55-2-1. Trustee's obligation of good faith.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-2 - Trustee not to use property for his own benefit--Profit of trustee from use of property, extent of liability.

55-2-2. Trustee not to use property for his own benefit--Profit of trustee from use of property, extent of liability.
A trustee may not in any manner use or deal with the trust property for his own profit or for any other purpose unconnected with the trust.
If he does so, he may, at the option of the beneficiary, be required to account for all profits thereby made or to pay the value of the use of the trust property, and if he has disposed thereof, to replace it with its fruits or to account for its proceeds with interest.
Source:
SDC 1939, §59.0107.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-3 - Transactions involving interest of trustee adverse to beneficiary prohibited--Exceptions.

55-2-3. Transactions involving interest of trustee adverse to beneficiary prohibited--Exceptions.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-4 - Trustee's influence not to be used for his advantage.

55-2-4. Trustee's influence not to be used for his advantage.
A trustee may not use the influence which his position gives him to obtain any advantage from his beneficiary.
Source:
SDC 1939, §59.0109.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-5 - Trustee not to assume a trust adverse to the interest of beneficiary.

55-2-5. Trustee not to assume a trust adverse to the interest of beneficiary.
No trustee so long as he remains in the trust may undertake another trust adverse in its nature to the interest of his beneficiary in the subject of the trust without the consent of the latter.
Source:
SDC 1939, §59.0110.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-6 - Adverse interest of trustee--Information to beneficiary--Removal of trustee.

55-2-6. Adverse interest of trustee--Information to beneficiary--Removal of trustee.
If a trustee acquires any interest or becomes charged with any duty adverse to the interest of his beneficiary in the subject of the trust, he must immediately inform the latter thereof and may be at once removed.
Source:
SDC 1939, §59.0111.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-7 - Fraud against beneficiary of trust.

55-2-7. Fraud against beneficiary of trust.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-8 - Presumption against trustee.

55-2-8. Presumption against trustee.
All transactions between a trustee and his beneficiary during the existence of the trust or while the influence acquired by the trustee remains, by which he obtains any advantage from his beneficiary, are presumed to be entered into by the latter without sufficient consideration and under undue influence.
Source:
SDC 1939, §59.0113.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-9 - Liability of trustee mingling trust property with his own.

55-2-9. Liability of trustee mingling trust property with his own.
A trustee who willfully and unnecessarily mingles the trust property with his own so as to constitute himself in appearance its absolute owner is liable for its safety in all events.
Source:
SDC 1939, §59.0114.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-10 - Measure of liability for unauthorized use or disposal of trust property--Intent to serve interest of beneficiary.

55-2-10. Measure of liability for unauthorized use or disposal of trust property--Intent to serve interest of beneficiary.
A trustee who uses or disposes of the trust property in any manner not authorized by the trust but in good faith and with intent to serve the interest of the beneficiary is liable only to make good whatever is lost to the beneficiary by his error.
Source:
SDC 1939, §59.0115.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-11 - Liability for acts of cotrustee.

55-2-11. Liability for acts of cotrustee.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-12 - Liability and duties of successor trustee for agreements, contracts or actions of predecessor fiduciary.

55-2-12. Liability and duties of successor trustee for agreements, contracts or actions of predecessor fiduciary.
Unless otherwise provided in the trust agreement, a successor trustee:
(1)Is not individually liable for actions or inactions of a predecessor fiduciary, including agreements, contracts accountings, records, distributions, investments, modifications, reformations, or other acts entered into by its predecessor fiduciary; and
(2)Does not have a duty to:
(a)Confirm or validate such predecessor fiduciary's actions or inactions;
(b)Confirm the validity of the trust agreement; or
(c)Prosecute or seek redress for any action or inaction by the predecessor fiduciary.
Source:
SL 1991, ch 229, §2; SL 2021, ch 207, § 10.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-13.1 - Information to be provided to excluded fiduciaries--Liability limits of trustee.

55-2-13.1. Information to be provided to excluded fiduciaries--Liability limits of trustee.
A trust advisor, trust protector, or other fiduciary designated by the terms of the trust shall keep each excluded fiduciary designated by the terms of the trust reasonably informed about:
(1)The administration of the trust with respect to any specific duty or function being performed by the trust advisor, trust protector, or other fiduciary to the extent that the duty or function would normally be performed by the excluded fiduciary or to the extent that providing such information to the excluded fiduciary is reasonably necessary for the excluded fiduciary to perform its duties; and
(2)Any other material information that the excluded fiduciary would be required to disclose to the qualified beneficiaries, regardless of whether the terms of the trust relieve the excluded fiduciary from providing such information to the qualified beneficiaries pursuant to §55-2-13.
The limitation of the liability of the excluded fiduciary is not affected by the performance of the actions required above or the failure of a trust advisor, trust protector, or other fiduciary designated pursuant to the terms of the governing instrument, to perform any such actions.
Source: SL 2023, ch 161, §8.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-14 - Duty to provide information regarding revocable trust and its administration.

55-2-14. Duty to provide information regarding revocable trust and its administration.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-16 - Action that may not be taken by restricted trustee may be taken by another unrestricted trustee.

55-2-16. Action that may not be taken by restricted trustee may be taken by another unrestricted trustee.
Any action that may not be taken by a trustee of the first trust by reason of the restrictions in subdivision 55-2-15(2) may instead be taken by any other trustee of the first trust who is not so restricted, or, if none, by the next available party who can be a successor trustee and who is not so restricted. The second trust may be a trust created or administered under the laws of any jurisdiction, within or without the United States.
Source:
SL 2007, ch 281, §2.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-17 - Conditions under which beneficiary has power to change trustees.

55-2-17. Conditions under which beneficiary has power to change trustees.
For the purposes of §55-2-15, a beneficiary shall be considered to have the power to "change the trustees" if he or she can, alone or with others, name himself or herself as a trustee or can remove a trustee and replace that trustee with a new trustee who is the beneficiary or who is related or subordinate (as defined in §672 of the I.R.C.) to the beneficiary.
Source:
SL 2007, ch 281, §3; SL 2009, ch 252, §18.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-18 - Exercise of power to distribute income or principal by written instrument--Notice to beneficiaries of first trust.

55-2-18. Exercise of power to distribute income or principal by written instrument--Notice to beneficiaries of first trust.
The exercise of the power to distribute the income or principal of the trust under §55-2-15 shall be by an instrument in writing, signed and acknowledged by the trustee and filed with the records of the trust. The trustee of the first trust may notify the beneficiaries of the first trust, in writing, prior to the effective date of the trustee's exercise of the power under §55-2-15 (applying chapter 55-18). A copy of the exercise of this authority and the second trust agreement shall satisfy this notice provision. For the purposes of this section, the term, beneficiaries, means those persons who would be entitled to notice and a copy of the first trust instrument under §55-2-13.
Source:
SL 2007, ch 281, §4; SL 2009, ch 252, §19; SL 2013, ch 239, §17; SL 2017, ch 208, §31.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-19 - Exercise of power to distribute income or principal considered exercise of power of appointment.

55-2-19. Exercise of power to distribute income or principal considered exercise of power of appointment.
The exercise of the power to distribute the income or principal of the trust under §55-2-15 shall be considered the exercise of a power of appointment (other than a power to appoint to the trustee, the trustee's creditors, the trustee's estate, or the creditors of the trustee's estate).
Source:
SL 2007, ch 281, §5.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-20 - Impermissible use of power.

55-2-20. Impermissible use of power.
The power under §55-2-15 may not be exercised to suspend the power to alienate trust property or extend the first trust beyond the permissible period of any rule against perpetuities applicable to the first trust.
Source:
SL 2007, ch 281, §6; SL 2011, ch 212, §9.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-21 - Trustee's right to distribute income or principal in trust arising under law or terms of first trust not abridged.

55-2-21. Trustee's right to distribute income or principal in trust arising under law or terms of first trust not abridged.
No provision of §§55-2-15 to 55-2-20, inclusive, may be construed to abridge the right of any trustee who has power to distribute income or principal in further trust which arises under statute, common law, or the terms of the first trust.
Source:
SL 2007, ch 281, §7; SL 2009, ch 252, §20.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-22 - Fiduciary duty to determine that substituted property is of equivalent value.

55-2-22. Fiduciary duty to determine that substituted property is of equivalent value.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-23 - Reliance of excluded fiduciaries and trustees on tax information.

55-2-23. Reliance of excluded fiduciaries and trustees on tax information.
An excluded fiduciary as defined in §55-1B-1 who receives tax information regarding an asset or entity owned by the trust, any trustee of a trust that holds an asset or entity owned by the trust but who does not manage the asset or entity, and any trustee who receives tax information from the settlor, the settlor's agents, or other individuals regarding matters that have tax implications to the trust or trust beneficiaries, may rely, without liability, on tax information it receives in any of the above situations. By way of example, if a trustee holds in trust a limited liability company interest but does not manage the limited liability company, the trustee may rely, without limitation, on any tax information received from the manager of the limited liability company or its accountant or agents.
The tax information that a trustee may rely on in the above situations may include the following:
(1)The accuracy of any information reported on a tax return;
(2)A copy of a tax return provided by the tax return preparer or the taxpayer filing the return;
(3)The representation of another fiduciary or tax advisor who filed or prepared a tax return as to the amount of any item reported on that return;
(4)The settlor's representation whether or not a gift or generation skipping transfer tax form has ever been filed as well as how much of the respective exemptions have been utilized; or
(5)The direction from the grantor's or settlor's tax advisors based upon any contribution or distribution, or both, for the appropriate tax filings.
An entity, for purposes of this section, shall be defined as set out in subdivisions 47-34A-101(6) and 47-34A-101(13).
This section applies to any trust in existence on or created on or after July 1, 2012.
Source:
SL 2012, ch 233, §21.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 02 - Duties And Liabilities Of Trustees › Section 55-2-24 - Notice to beneficiaries and other interested parties.

55-2-24. Notice to beneficiaries and other interested parties.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-1 - Application of chapter.

55-3-1. Application of chapter.
The provisions of this chapter apply to all trusts.
Source:
SDC 1939, §59.0201; SL 1993, ch 213, §254; SL 1993, ch 355, §1; SL 1998, ch 282, §11; SL 2010, ch 232, §2.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-2 - Creation of trust--Mutual consent of trustor and trustee.

55-3-2. Creation of trust--Mutual consent of trustor and trustee.
The mutual consent of a trustor and trustee creates a trust of which the beneficiary may take advantage at any time prior to its rescission.
Source:
SDC 1939, §59.0202.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-3 - Appointing court or public officer as trustor.

55-3-3. Appointing court or public officer as trustor.
When a trustee is appointed by a court or public officer as a trustee, the court or officer is the trustor. A court may otherwise establish or create a trust and may act as the trustor of a trust.
Source:
SDC 1939, §59.0202; SL 2016, ch 231, §19.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-4 - Declaration of trust--Declarations of trustor to trustee before acceptance.

55-3-4. Declaration of trust--Declarations of trustor to trustee before acceptance.
The nature, extent, and object of a trust are expressed in the declaration of trust.
All declarations of a trustor to his trustees in relation to the trust, before its acceptance by the trustees or any of them are to be deemed part of the declaration of the trust, except that when a declaration of trust is made in writing all previous declarations by the same trustor are merged therein.
Source:
SDC 1939, §59.0203.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-5 - Trustee to follow declaration of trust--Modifications.

55-3-5. Trustee to follow declaration of trust--Modifications.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-6 - Trust irrevocable in absence of express contrary provisions.

55-3-6. Trust irrevocable in absence of express contrary provisions.
Unless the terms of a trust expressly reserve a power to the settlor to revoke or modify a trust, a trust shall be irrevocable.
Source:
SDC 1939, §59.0216; SL 1993, ch 355, §2; SL 1998, ch 282, §9; SL 2019, ch 209, §5.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-7 - Trustee's power as agent.

55-3-7. Trustee's power as agent.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-10 - Degree of care and diligence used in execution of trusts.

55-3-10. Degree of care and diligence used in execution of trusts.
A trustee, whether he receives any compensation or not, must use at least ordinary care and diligence in the execution of his trust.
Source:
SDC 1939, §59.0205.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-11 - Investment of money by trustee--Interest, simple or compound, on omission to invest trust moneys.

55-3-11. Investment of money by trustee--Interest, simple or compound, on omission to invest trust moneys.
A trustee must invest money received by him under the trust, as fast as he collects a sufficient amount, in such manner as to afford reasonable security and interest for the same.
If he fails so to do, he must pay simple interest thereon if such omission is merely negligent, and compound interest thereon if it is willful.
Source:
SDC 1939, §59.0207.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-12 - Purchase by trustee of claims against trust property.

55-3-12. Purchase by trustee of claims against trust property.
A trustee cannot enforce any claim against the trust property which he purchases after or in contemplation of his appointment as trustee; but he may be allowed by any competent court to charge to the trust property what he has in good faith paid for the claim, upon discharging the same.
Source:
SDC 1939, §59.0208.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-13 - Expenses incurred by trustee in performance of trust--Reimbursement.

55-3-13. Expenses incurred by trustee in performance of trust--Reimbursement.
A trustee, including a former trustee, is entitled to the repayment, out of the trust property, of all expenses actually and properly incurred by the trustee in the performance of the trustee's duties. The trustee is entitled to the repayment of even unlawful expenditures, if the expenditures were productive of actual benefit to the estate. Expenses in performance of the trust include those expenses actually and properly incurred in the exercise of the trustee's powers as described in the governing instrument, in any applicable court order, or in chapter 55-1A. A former trustee is entitled to the repayment, out of trust property, of all expenses actually and properly incurred by the former trustee in the defense of proceedings relating to the performance of the trustee's duties to the same extent as the current trustee is entitled to repayment.
Source:
SDC 1939, §59.0212; SL 2014, ch 226, §18; SL 2020, ch 206, § 13.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-14 - Compensation of trustee.

55-3-14. Compensation of trustee.
When a declaration of trust does not specify the rate or amount of the trustee's compensation the trustee is entitled to and shall receive reasonable compensation for the performance of his duties. If such declaration specifies the amount or rate of his compensation, he is entitled to the amount or rate thus specified and no more.
Source:
SDC 1939, §59.0213; SL 1967, ch 337.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-15 - Implied trustee--No rights to compensation or repayment of expenses.

55-3-15. Implied trustee--No rights to compensation or repayment of expenses.
The trustee of an implied trust who becomes such through his own fault has none of the rights to compensation or repayment of expense prescribed in §§55-3-13 and 55-3-14.
Source:
SDC 1939, §59.0214.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-16 - Vacation of office of trustee.

55-3-16. Vacation of office of trustee.
The office of a trustee is vacated:
(1)By its death;
(2)By its discharge; or
(3)By its resignation.
Source:
SDC 1939, §59.0217; SL 2019, ch 209, §1.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-17 - Discharge of trustee--Grounds.

55-3-17. Discharge of trustee--Grounds.
A trustee can be discharged from his trust only as follows:
(1)By the extinction of the trust;
(2)By the completion of his duties under the trust;
(3)By such means as may be prescribed by the declaration of trust;
(4)By the consent of the beneficiary, if he has capacity to contract;
(5)By the judgment of a competent tribunal in a direct proceeding for that purpose that he is of unsound mind; or
(6)By the circuit court.
Source:
SDC 1939, §59.0218.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-17.1 - Resignation of fiduciary.

55-3-17.1. Resignation of fiduciary.
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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-18 - Survivorship between cotrustees.

55-3-18. Survivorship between cotrustees.
On the death, renunciation, or discharge of one of several cotrustees, the trust survives to the others.
Source:
SDC 1939, §59.0219.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-20 - Removal of trustee by circuit court--Vacant trusteeship filled by court.

55-3-20. Removal of trustee by circuit court--Vacant trusteeship filled by court.
The circuit court may remove any trustee who has violated, or is unfit to execute, his trust. It may appoint a trustee whenever there is a vacancy and the declaration of trust does not provide a practicable method of appointment.
Source:
SDC 1939, §59.0220.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-20.1 - Grounds for removal of trustee.

55-3-20.1. Grounds for removal of trustee.
In addition to other remedies available by law and procedures or powers set out in a trust instrument, the settlor, or the settlor's agent, a trust protector, a cotrustee, or a qualified beneficiary as defined in §55-2-13, or an enforcer, as defined in §55-1-21.4, may request the court to remove a trustee, or a trustee may be removed by the court on the court's own initiative.
In addition to the powers otherwise granted the court, the court may remove a trustee if:
(1)The trustee commits a serious breach of trust;
(2)Lack of cooperation among cotrustees substantially impairs the administration of the trust;
(3)Because of unfitness, unwillingness, persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries;
(4)There is a substantial change of circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available; or
(5)If the trustee merges with another institution or the location or place of administration of the trust changes, and the court finds that removal of the trustee best serves the interests of all of the beneficiaries, and a suitable cotrustee or successor trustee is available.
Pending a final decision on a request to remove a trustee, the court may order such appropriate relief as may be necessary to protect the trust property or the interests of the beneficiaries.
Source:
SL 2009, ch 252, §23; SL 2015, ch 240, §17; SL 2020, ch 206, § 14.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-21 - Appointment of trustee by circuit court--Grounds.

55-3-21. Appointment of trustee by circuit court--Grounds.
If a trust exists without any appointed trustees, or where all the trustees renounce, die, or are discharged, the circuit court for the county where the trust property or some portion thereof is situated must appoint another trustee and direct the execution of the trust. The court may in its discretion appoint the original number or any less number of trustees.
Source:
SDC 1939, §59.0220.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-23 - Termination of trust.

55-3-23. Termination of trust.
In addition to the methods specified in §§55-3-24 to 55-3-27, inclusive, a trust terminates if:
(1)The term of the trust expires;
(2)The trust purpose is fulfilled;
(3)The trust purpose becomes unlawful or impossible to fulfill; or
(4)The trust is revoked.
Source:
SL 1998, ch 282, §1; SL 2016, ch 231, §21.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-24 - Modification or termination of trust--Notice to fiduciaries--Distribution of property.

55-3-24. Modification or termination of trust--Notice to fiduciaries--Distribution of property.
An irrevocable trust may be modified or terminated by judicial action or by written agreement entered into by 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 judicial action or by written agreement by 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 shall be 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.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-25 - Petition to court for affirmation--Non-consenting beneficiaries--Distribution of property.

55-3-25. Petition to court for affirmation--Non-consenting beneficiaries--Distribution of property.
A trustor, trustee, or beneficiary may but is not required to seek court affirmation of a modification or termination of a trust made pursuant to §55-3-24. Upon petition by a trustor, trustee, or beneficiary, upon a finding that the provisions of §55-3-24 have been met, the court shall affirm the proposed modification or termination of the trust. If any beneficiary does not consent to a requested modification or termination of a trust by the other beneficiaries or by the trustor and other beneficiaries, the court, with the consent of the other beneficiaries, and of the trustor, if required, may approve a requested modification or partial termination if the rights or interests of the beneficiaries who do not consent are not significantly impaired or adversely affected. Upon modification or partial termination of the trust, the trustee shall distribute the trust property as ordered by the court.
Source:
SL 1998, ch 282, §3; SL 2017, ch 204, §19.
2023 South Dakota Codified Laws › Title 55 - Fiduciaries and Trusts › Chapter 03 - Express Trusts For Third Party Beneficiaries › Section 55-3-26 - Petition to modify terms of trust--Circumstances--Distribution of property.

55-3-26. Petition to modify terms of trust--Circumstances--Distribution of property.
On petition by a trustee or beneficiary, the court may modify the administrative or dispositive terms of the trust or terminate the trust if, because of circumstances not anticipated by the trustor, modification or termination of the trust would substantially further the trustor's purposes in creating the trust. Upon termination of a trust under this section, the trust property shall be distributed in accordance with the trustor's probable intention.
Source:
SL 1998, ch 282, §4.