Title 55, FIDUCIARIES AND TRUSTS

(1) Except as otherwise provided by the terms of a trust instrument governing a revocable trust and subject to § 55-2-14 , a trustee has no duty to notify the qualified beneficiaries of the trust's existence. (2) Except as otherwise provided by the terms of a trust instrument gov…

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 per…

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 admin…

Unless the terms of the governing instrument expressly provide otherwise, if a trustee has discretion under the terms of a governing instrument to make a distribution of income or principal to or for the benefit of one or more beneficiaries of a trust (the "first trust"), whether…

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 …

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 …

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 fi…

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 …

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 …

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.

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…

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 , § …

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 inf…

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 …

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 capa…

A trustee may not use the influence which his position gives him to obtain any advantage from his beneficiary. Source: SDC 1939, § 59.0109.

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.

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.

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.

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 …

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.