Language resulting in classification of distribution interest

SDCL § 55-1-40 — under CLASSIFICATION AND CREATION OF TRUSTS.

SDCL § 55-1-40

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.