Title 55, FIDUCIARIES AND TRUSTS

A corporate trustee which is subject to regulation and supervision by state or federal authorities may deposit with itself trust funds which are being held necessarily pending investment, distribution, or the payment of debts, provided it pays into the trust for such deposit such…

The separate fund of securities required by § 55-4-11 shall be marked as such. Withdrawals from or additions to it may be made from time to time, as long as the required value is maintained. The income of such securities shall belong to the corporate trustee. In all statements of…

No trustee, unless expressly authorized by the trust instrument, shall directly or indirectly lease, buy or sell any property for the trust from or to itself or an affiliate; or from or to a director, officer, or employee of such trustee or of an affiliate; or from or to a relati…

A corporate trustee may sell stocks, bonds and other securities listed on all exchange supervised by the securities and exchange commission as well as obligations of the U.S. treasury and obligations of U.S. government agencies held by it in one account to itself as trustee of an…

No corporate trustee, unless expressly authorized by the trust instrument, may purchase for a trust shares of its own stock, or its bonds, or other securities, or the stock, bonds, or other securities of an affiliate. Source: SL 1943, ch 308 , § 7; SDC Supp 1960, § 59.0507; SL 20…

Where a person who is a trustee of two or more trusts has mingled the funds of two or more trusts in the same aggregate of cash, or in the same bank or brokerage account or other investment, and a withdrawal is made therefrom by the trustee for his own benefit, or for the benefit…

When an interest in real property is conveyed by deed to a person on a trust which is unenforceable on account of the statute of frauds and the intended trustee or his successor in interest still holds title but refuses to carry out the trust on account of the statute of frauds, …

Where the intended trustee has transferred part or all of his interest and it has come into the hands of a bona fide purchaser, the intended trustee shall be liable to the settlor or his successor in interest for the value of the interest thus transferred at the time of its trans…

Whenever a trustee shall make a contract which is within his powers as trustee, or a predecessor trustee shall have made such a contract, and a cause of action shall arise thereon, the party in whose favor the cause of action has accrued may sue the trustee in his representative …

Unless it is otherwise provided by the trust instrument, or an amendment thereof, or by court order, all powers of a trustee shall be attached to the office and shall not be personal. Source: SL 1943, ch 308 , § 10; SDC Supp 1960, § 59.0510.

No judgment shall be rendered in favor of the plaintiff in an action pursuant to § 55-4-19 unless he proves that within thirty days after the beginning of such action, or within such other time as the court may fix, and more than thirty days prior to obtaining the judgment, he no…

The plaintiff in an action pursuant to § 55-4-19 may also hold the trustee who made the contract personally liable on such contract, if the contract does not exclude such personal liability. The addition of the word "trustee" or the words "as trustee" after the signature of a tru…

A trustee who has incurred personal liability for a tort committed in the administration of the trust is entitled to exoneration therefor from the trust property if he has not discharged the claim, or to be reimbursed therefor out of trust funds if he has paid the claim, if: (1) …

If a trustee commits a tort which increases the value of the trust property, he shall be entitled to exoneration or reimbursement with respect thereto to the extent of such increase in value, even though he would not otherwise be entitled to exoneration or reimbursement. Source: …

Nothing in § 55-4-22 or 55-4-23 shall be construed to change the existing law with regard to the liability of trustees of charitable trusts for torts of themselves or their employees. Source: SL 1943, ch 308 , § 13; SDC Supp 1960, § 59.0513 (3).

Where a trustee or his predecessor has incurred personal liability for a tort committed in the course of his administration, the trustee in his representative capacity may be sued and collection had from the trust property, if the court shall determine in such action: (1) that th…

In an action against the trustee in his representative capacity under § 55-4-25 the plaintiff need not prove that the trustee could have secured reimbursement from the trust fund if he had paid the plaintiff's claim. Source: SL 1943, ch 308 , § 14; SDC Supp 1960, § 59.0514 (2).

No judgment shall be rendered in favor of the plaintiff in an action pursuant to § 55-4-25 unless he proves that within thirty days after the beginning of the action, or within such other period as the court may fix and more than thirty days prior to obtaining the judgment, he no…

The trustee may also be held personally liable for any tort committed by him, or by his agents or employees in the course of their employments, subject to the rights of exoneration or reimbursement provided in §§ 55-4-22 and 55-4-23 . Source: SL 1943, ch 308 , § 14; SDC Supp 1960…

Nothing in §§ 55-4-25 to 55-4-28 , inclusive, shall be construed to change the existing law with regard to the liability of trustees of charitable trusts for torts of themselves or their employees. Source: SL 1943, ch 308 , § 14; SDC Supp 1960, § 59.0514.

Unless it is otherwise provided by the trust instrument, or an amendment thereof, or by court order, any power vested in three or more trustees may be exercised by a majority of such trustees and any power vested in two trustees shall be exercised by both of such trustees. Source…

Subject to the final paragraph below, the settlor of any trust affected by this chapter may: (1) By provision in the instrument creating the trust if the trust was created by a writing; (2) By oral statement to the trustee at the time of the creation of the trust if the trust was…

A trustee is not liable to a beneficiary, as defined under this title or Title 29A, for breach of trust from any or all of the duties, restrictions, and liabilities which would otherwise be imposed on the trustee, except as to the duties, restrictions, and liabilities imposed by …

A court of competent jurisdiction may, for cause shown and upon notice to the beneficiaries, relieve a trustee from any or all of the duties and restrictions which would otherwise be placed upon him by this chapter, or wholly or partly excuse a trustee who has acted honestly and …

If a trustee violates any of the provisions of this chapter, the trustee may be removed and denied compensation in whole or in part, and any beneficiary, cotrustee, or successor trustee may treat the violation as a breach of trust. Until the cessation of compensation is ordered b…

This chapter shall apply only to testamentary trusts created by wills or codicils executed after July 1, 1943 and to nontestamentary trusts created after July 1, 1943. Source: SL 1943, ch 308 , § 25; SDC Supp 1960, § 59.0523.

This chapter shall be so interpreted and construed as to effectuate its general purpose to make uniform the law of those states which enact it. Source: SL 1943, ch 308 , § 21; SDC Supp 1960, § 59.0521.

This chapter may be cited as the Uniform Trusts Act. Source: SL 1943, ch 308 , § 22; SDC Supp 1960, § 59.0522.

If permitted by the trust instrument or will under which a fiduciary serves, or by order of a court having jurisdiction of the estate or trust, a fiduciary may enter into a partnership agreement or arrangement with others or accept the assignment of, or otherwise acquire, hold, a…

Unless the terms of the trust refer to this section and provide otherwise, a power, including the power to make a distribution to another trust under § 55-2-15 , that is exercisable by or attributable to a person, other than the settlor, in such person's capacity as a trustee to …

The reference to trustee in § 55-4-38 includes any person who is deemed to have any power of a trustee, whether because such person has the right to remove or replace any trustee, or because a reciprocal trust or power doctrine applies, or otherwise. Source: SL 2000, ch 229 , § 5…

No trustee who has not joined in exercising a power shall be liable to the beneficiaries or to others for the consequences of such exercise, nor shall a dissenting trustee be liable for the consequences of an act in which he joins at the direction of the majority trustees, if he …

The provisions of §§ 55-4-38 and 55-4-39 apply to any trust established before or after July 1, 2000. Source: SL 2000, ch 229 , § 6.

The provisions of §§ 55-4-38 to 55-4-40 , inclusive, do not apply to a decedent's or settlor's spouse who is the trustee of a testamentary trust or an inter vivos trust for which a marital deduction is allowable. Source: SL 2000, ch 229 , § 7.

Nothing in § 55-4-3 or 55-4-4 shall excuse a cotrustee from liability for inactivity in the administration of the trust nor for failure to attempt to prevent a breach of trust. Source: SL 1943, ch 308 , § 11; SDC Supp 1960, § 59.0511 (2).

If a co-trustee is unable to perform duties because of absence, illness, disqualification under other law, or other incapacity, or fails to perform duties due to inaction or neglect, and action is necessary or appropriate under the circumstances to achieve the purposes of the tru…

Instead of furnishing a copy of the trust instrument or a copy of a will that creates a testamentary trust to a person other than a beneficiary, one or more trustees may furnish to the person a certificate of trust signed by a trustee, settlor, grantor, or trustor containing the …

A certificate of trust executed under § 55-4-51 may be recorded in the office of the register of deeds with respect to land described in the certificate of trust or any attachment to it. If it is recorded or filed in any county where real property is situated, or in the case of p…

Sections 55-4-51 and 55-4-51.1 are effective July 1, 2010, but apply to trust instruments and wills whenever created or executed. Source: SL 2010, ch 232 , § 9.

A certificate of a trustee or of trustees of a trust in support of a real property transaction may be substantially in the following form: This instrument was prepared by: ____________________ ____________________ ____________________ (insert name, address and phone number) CERTI…

A recipient of a certificate of trust may require the trustee to furnish copies of those excerpts from the original trust instrument and later amendments that designate the trustee and confer on the trustee the power to act in the pending transaction. Source: SL 2009, ch 252 , § …

Any person who acts in reliance on a certificate of trust without knowledge that the representations contained in the certification are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the facts contained in the certification. Kn…

Any person who in good faith enters into a transaction in reliance on a certificate of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct. Source: SL 2009, ch 252 , § 27.

Any person making a demand for the trust instrument in addition to a certificate of trust or excerpts is liable for damages if the court determines that the person did not act in good faith in demanding the trust instrument. Source: SL 2009, ch 252 , § 28.

The provisions of §§ 55-4-51 to 55-4-55 , inclusive, do not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust. Source: SL 2009, ch 252 , § 29.

(a) A judicial proceeding to contest whether a revocable trust or any amendment thereto, or an irrevocable trust was validly created may not be commenced later than the first to occur of: (1) One year after the settlor's death; (2) Sixty days after the trustee, trust advisor, tru…