Title 55 — FIDUCIARIES AND TRUSTS

Source: SL 2019, ch 209 , § 2.

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.

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.

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 …

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 th…

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…

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 entitl…

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

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.

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 co…

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 o…

On the death, renunciation, or discharge of one of several cotrustees, the trust survives to the others. Source: SDC 1939, § 59.0219.

If a trustee procures or assents to his discharge from his office before his trust is fully executed, he must use at least ordinary care and diligence to secure the appointment of a trustworthy successor before accepting his own final discharge. Source: SDC 1939, § 59.0206.

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.

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.

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…

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 cour…

55-3-23 Termination of trust. 55-3-24 Modification or termination of trust--Notice to fiduciaries--Distribution of property. 55-3-25 Petition to court for affirmation--Non-consenting beneficiaries--Distribution of property. 55-3-26 Petition to modify terms of trust--Circumstances…

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, …

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 …

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 §

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'…

Except as otherwise provided by the terms of the trust, if the value of the trust property of a noncharitable trust is less than one hundred fifty thousand dollars, the trustee may terminate the trust. On petition by a trustee or beneficiary, the court may modify or terminate a n…

On petition by a trustee or beneficiary, the court may reform the terms of the trust, based upon a showing by the preponderance of the evidence and without any preliminary showing of an ambiguity, to conform to the trustor's intention if the failure to conform was due to a mistak…

Without approval of court and except as otherwise provided by the terms of the trust, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts, if the combination or division does not impair the rights of any of the beneficia…

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.

No beneficiary of a trust may assert a statute of limitations defense in any proceeding to modify, reform, or terminate a trust pursuant to §§ 55-3-23 to 55-3-29 , inclusive. Source: SL 2011, ch 212 , § 12.

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.

The provisions of §§ 55-3-23 to 55-3-29 , inclusive, shall not be construed as exclusive methods of modifying or terminating irrevocable trusts. Source: SL 1998, ch 282 , § 8. 55-3-31 to 55-3-38. Repealed by SL 2017, ch 208 , § 36.

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 whe…

The validity, construction, and administration of a trust with a state jurisdiction provision are determined by the laws of this state, including the: (1) Capacity of the trustor; (2) Powers, obligations, liabilities, and rights of the trustees and the appointment and removal of …

For the purposes of § 55-3-39 , the term, qualified person, means: (1) An individual who, except for brief intervals, military service, attendance at an educational or training institution, or for absences for good cause shown, resides in this state, whose true and permanent home…

For the purposes of §§ 55-3-39 and 55-3-40 , the term, state jurisdiction provision, means a provision within the trust instrument that the laws of this state govern the validity, construction, or administration of a trust or that the trust is subject to the jurisdiction of this …

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 …

For the purposes of § 55-3-40 , the term, trustor, means a person who transfers property in trust, and includes a person who furnishes the property transferred to a trust even if the trust is created by another person. Source: SL 1998, ch 282 , § 25.

If a trust is not subject to court supervision under chapter 21-22 , and if no objection has been made by a distribution beneficiary, as defined in this title, of a trust within one hundred eighty days after a copy of the trustee's accounting has been provided in accordance with …

No trust with South Dakota situs or governed by the laws of the State of South Dakota and no disposition of property to be held upon the terms of such trust is void, voidable, liable to be set aside, or defective in any manner by reason that: (1) The law of any foreign country, a…

No trust governed by the laws of this state and no disposition of property to be held upon the terms of such trust is void, voidable, liable to be set aside, or defective in any manner by reason that the law or public policy of any other state does not recognize or limits the val…

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 tr…

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. Sourc…

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 he…

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 modificatio…

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.

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…

55-3-9

55-3-10 Degree of care and diligence used in execution of trusts. 55-3-11 Investment of money by trustee--Interest, simple or compound, on omission to invest trust moneys. 55-3-12 Purchase by trustee of claims against trust property. 55-3-13 Expenses incurred by trustee in perfor…