Title 55 — FIDUCIARIES AND TRUSTS
25 chapters · 567 sections in this title.
SDCL § 55-7-8 Bank account in name of principal--Check drawn by fiduciary--Bank's liability to principal
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If a check is drawn upon the account of his principal in a bank by a fiduciary who is empowered to draw checks upon his principal's account, the bank is authorized to pay such check without being liable to the principal, unless the bank pays the check with actual knowledge that t…
SDCL § 55-7-9 Deposit in bank to fiduciary's personal account--Bank's liability to principal
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If a fiduciary makes a deposit in a bank to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or of checks drawn by him upon an account in the name of his principal if he is empowered to draw checks …
SDCL § 55-8-1 Definition of terms
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In this chapter, unless the context otherwise requires: (1) "Assignment" includes any written stock power, bond power, bill of sale, deed, declaration of trust, or other instrument of transfer. (2) "Claim of beneficial interest" includes a claim of any interest by a decedent's le…
SDCL § 55-8-10 Claim of beneficial interest adverse to transfer of security--Notice of presentment to claimant--Restraining order
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As soon as practicable after the presentation of a security for transfer pursuant to an assignment by a fiduciary, a corporation or transfer agent which has received notice of a claim of beneficial interest adverse to the transfer may send notice of the presentation by registered…
SDCL § 55-8-11 Liability of corporation or transfer agent for making or refusing transfer
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Nothing in this chapter relieves the corporation or transfer agent of any liability for making or refusing to make the transfer after it is put on notice pursuant to § 55-8-9 , unless it proceeds in the manner authorized in §
SDCL § 55-8-12 Nonliability of corporation or transfer agent for authorized acts
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A corporation or transfer agent incurs no liability to any person by making a transfer or otherwise acting in a manner authorized by this chapter. Source: SL 1961, ch 22 , § 6.
SDCL § 55-8-13 Participation in breach of fiduciary duty--Nonliability of third persons
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No person who participates in the acquisition, disposition, assignment or transfer of a security by or to a fiduciary, including a person who guarantees the signature of the fiduciary, is liable for participation in any breach of fiduciary duty by reason of failure to inquire whe…
SDCL § 55-8-14 Liability of guarantor of signature of fiduciary
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If a corporation or transfer agent makes a transfer pursuant to an assignment by a fiduciary, a person who guaranteed the signature of the fiduciary is not liable on the guarantee to any person to whom the corporation or transfer agent by reason of this chapter incurs no liabilit…
SDCL § 55-8-15 Corporation and transfer agent not liable for breach of fiduciary duty or on guarantee of fiduciary's signature
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Sections 55-8-13 and 55-8-14 do not impose any liability upon the corporation or its transfer agent. Source: SL 1961, ch 22 , § 7 (3).
SDCL § 55-8-16 Tax obligations of corporation or transfer agent not affected by chapter
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This chapter does not affect any obligation of a corporation or transfer agent with respect to estate, inheritance, succession, or other taxes imposed by the laws of this state. Source: SL 1961, ch 22 , § 9.
SDCL § 55-8-17 Uniformity of interpretation
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This chapter shall be so construed as to effectuate its general purpose to make uniform the law of those states which enact it. Source: SL 1961, ch 22 , § 10.
SDCL § 55-8-18 Citation of chapter
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This chapter may be cited as the Uniform Act for the Simplification of Fiduciary Security Transfers. Source: SL 1961, ch 22 , § 11.
SDCL § 55-8-2 Rights and duties of corporation and transfer agent--Law governing
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The rights and duties of a corporation and its transfer agent in registering a security in the name of a fiduciary or in making a transfer of a security pursuant to an assignment by a fiduciary are governed by the law of the jurisdiction under whose laws the corporation is organi…
SDCL § 55-8-3 Application of chapter
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This chapter applies to the rights and duties of a person other than the corporation and its transfer agents with regard to acts and omissions in this state in connection with the acquisition, disposition, assignment, or transfer of a security by or to a fiduciary and of a person…
SDCL § 55-8-4 Registration of security in name of fiduciary
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A corporation or transfer agent registering a security in the name of a person who is a fiduciary or who is described as a fiduciary is not bound to inquire into the existence, extent, or correct description of the fiduciary relationship; and thereafter the corporation and its tr…
SDCL § 55-8-5 Assignment of security by fiduciary--Assumption as to authority and capacity
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Except as otherwise provided in this chapter, a corporation or transfer agent making a transfer of a security pursuant to an assignment by a fiduciary may assume without inquiry that the assignment, even though to the fiduciary himself or to his nominee, is within his authority a…
SDCL § 55-8-6 Assignment of security by fiduciary--Compliance with controlling instrument and law governing fiduciary relationship assumed
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Except as otherwise provided in this chapter, a corporation or transfer agent making a transfer of a security pursuant to an assignment by a fiduciary may assume without inquiry that the fiduciary has complied with any controlling instrument and with the law of the jurisdiction g…
SDCL § 55-8-7 Assignment of security by fiduciary--Corporation or transfer agent not charged with notice of records or documents
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Except as otherwise provided in this chapter, a corporation or transfer agent making a transfer of a security pursuant to an assignment by a fiduciary is not charged with notice of and is not bound to obtain or examine any court record or any recorded or unrecorded document relat…
SDCL § 55-8-8 Assignment of security by fiduciary not the registered owner--Evidence of appointment or incumbency
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A corporation or transfer agent making a transfer pursuant to an assignment by a fiduciary who is not the registered owner shall obtain the following evidence of appointment or incumbency: (1) In the case of a fiduciary appointed or qualified by a court, a certificate issued by o…
SDCL § 55-8-9 Claim of beneficial interest adverse to transfer of security--Written notice to corporation or transfer agent, contents
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A person asserting a claim of beneficial interest adverse to the transfer of a security pursuant to an assignment by a fiduciary may give the corporation or transfer agent written notice of the claim. The corporation or transfer agent is not put on notice unless the written notic…
SDCL 21-22-18
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Source: SL 1955, ch 429 , § 3; SDC Supp 1960, § 59.0603; SL 2012, ch 233 , § 23.
SDCL § 55-9-1 Express trusts--Creation for charitable, educational, religious, or other public use
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Express trusts of real or personal property, or both, may be created to receive by grant, devise, gift, or bequest, and to take charge of, invest and administer in accordance with the terms of the trust, upon and for any charitable, benevolent, educational, religious or other pub…
SDCL § 55-9-10 Retention of excess business holdings prohibited
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The trustee of a trust described in § 55-9-7 shall not retain any excess business holdings which would give rise to any liability for the tax imposed by section 4943 (a) of the Internal Revenue Code. Source: SL 1972, ch 259 , § 2 (3).
SDCL § 55-9-11 Investments to jeopardize exempt purposes prohibited
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The trustee of a trust described in § 55-9-7 shall not make any investments which would jeopardize the carrying out of any of the exempt purposes of the trust, within the meaning of section 4944 of the Internal Revenue Code, so as to give rise to any liability for the tax imposed…
SDCL § 55-9-12 Taxable expenditures prohibited
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The trustee of a trust described in § 55-9-7 shall not make any taxable expenditure which would give rise to any liability for the tax imposed by section 4945 (a) of the Internal Revenue Code. Source: SL 1972, ch 259 , § 2 (5).
SDCL § 55-9-13 Judicial determination that restrictive provisions are contrary to instrument creating trust
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Sections 55-9-7 to 55-9-12 , inclusive, shall not apply to the extent that a court of competent jurisdiction shall determine that such application would be contrary to the terms of the will, trust instrument, or other governing instrument described in § 55-9-7 and that such will,…
SDCL § 55-9-14 State supervisory powers unimpaired by restrictions to avoid taxability of income
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Nothing in §§ 55-9-6 to 55-9-13 , inclusive, shall impair the rights and powers of the attorney general or the courts of this state with respect to any trust. Source: SL 1972, ch 259 , § 4.
SDCL § 55-9-2 Validity of trust not affected by uncertainty or violation of rule against perpetuities--Disposal of property by trustee
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No such trust shall be invalid because of indefiniteness or uncertainty of the object of such trust or of the beneficiaries thereof designated in the instrument creating the same nor by reason of the same contravening any statute or rule against perpetuities, but no such trust sh…
SDCL § 55-9-3 Action to enforce charitable trust--Liberal construction to carry out intent--Notice of action to attorney general
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Such trust shall be liberally construed by the courts so that the intentions of the donor thereof shall be carried out whenever possible, and no such trust shall fail solely because the donor has imperfectly outlined the purpose and object of such charity or the method of adminis…
Incomplete or imperfect trust--Purposes impracticable or impossible of performance--Administration to accomplish general purpose--Order of court with consent of donor, if alive and competent
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Whenever it shall appear to the circuit court for the proper county that the purpose and object of such charity is imperfectly expressed, or the method of administration is not indicated or is incomplete or imperfect, or that the fulfillment of the special purpose expressed in a …
SDCL § 55-9-5 Enforcement by attorney general as representative of beneficiaries--Exception
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Except as otherwise set forth in § 55-9-3 , the attorney general shall represent the beneficiaries in all cases arising under this chapter, and the attorney general shall enforce such trusts by proper proceedings in the courts. Source: SL 1955, ch 429 , § 3; SDC Supp 1960, § 59.0…
SDCL § 55-9-6 Restrictions to avoid taxability of income--Definition of terms
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Terms as used in §§ 55-9-6 to 55-9-14 , inclusive shall have the following meaning: (1) "Charitable trust," as defined in section 4947 (a)(1) of the Internal Revenue Code; (2) "Excess business holdings," as defined in section 4943 (c) of the Internal Revenue Code; (3) "Internal R…
SDCL § 55-9-7 Restrictions deemed incorporated in instrument creating charitable trust or foundation
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Any will or trust instrument creating a trust which is a private foundation, charitable trust, or a split - interest trust and any other instrument governing the trustee of any such trust or the use, retention, or disposition of any of the income or property of such trust, shall …
SDCL § 55-9-8 Self - dealing by trustee prohibited
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The trustee of a trust described in § 55-9-7 shall not engage in any act of self - dealing which would give rise to any liability for the tax imposed by section 4941 (a) of the Internal Revenue Code. Source: SL 1972, ch 259 , § 2 (2).
SDCL § 55-9-9 Distributions required to avoid taxes
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The trustee of a trust described in § 55-9-7 shall distribute for each taxable year of the trust, amounts at least sufficient to avoid liability for the tax imposed by section 4942 (a) of the Internal Revenue Code. Source: SL 1972, ch 259 , § 2 (1).
SDCL § 55-10A-1 Definitions
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Terms used in this chapter mean: (1) "Adult," a person who has attained the age of eighteen years; (2) "Benefit plan," an employer's plan for the benefit of an employee or partner; (3) "Broker," a person lawfully engaged in the business of effecting transactions in securities or …
SDCL § 55-10A-10 Designation of initial custodian
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An instrument in the following form satisfies the requirements of subdivisions 55-10A-9(1)(a) and (7): TRANSFER UNDER THE SOUTH DAKOTA UNIFORM TRANSFERS TO MINORS ACT I, ______________ (name of transferor or name and representative capacity if a fiduciary) hereby transfer to ____…
SDCL § 55-10A-11 Control
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A transferor shall place the custodian in control of the custodial property as soon as practicable. Source: SL 1986, ch 409 , § 11.
SDCL § 55-10A-12 Single custodianship
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A transfer may be made only for one minor, and only one person may be the custodian. All custodial property held under this chapter by the same custodian for the benefit of the same minor constitutes a single custodianship. Source: SL 1986, ch 409 , § 12.
SDCL § 55-10A-13 Validity and effect of transfer
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The validity of a transfer made in a manner prescribed in this chapter is not affected by: (1) Failure of the transferor to comply with § 55-10A-11 concerning possession and control; (2) Designation of an ineligible custodian, except designation of the transferor in the case of p…
SDCL § 55-10A-14 Care of custodial property
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A custodian shall take control of custodial property, register or record title to custodial property if appropriate, and collect, hold, manage, invest and reinvest custodial property. In dealing with custodial property, a custodian shall observe the standard of care that would be…
SDCL § 55-10A-15 Powers of custodian
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A custodian, acting in a custodial capacity, has all the rights, powers, and authority over custodial property that unmarried adult owners have over their own property, but a custodian may exercise those rights, powers, and authority in that capacity only. This section does not r…
SDCL § 55-10A-16 Use of custodial property
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A custodian may deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the custodian considers advisable for the use and benefit of the minor, without court order and without regard to the duty or ability of the custodian personally or …
SDCL § 55-10A-17 Custodian's expenses, compensation, and bond
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A custodian is entitled to reimbursement from custodial property for reasonable expenses incurred in the performance of the custodian's duties. Except for one who is a transferor under § 55-10A-4 , a custodian has a noncumulative election during each calendar year to charge reaso…
SDCL § 55-10A-18 Exemption of third person from liability
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A third person in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining: (1) The va…
SDCL § 55-10A-19 Liability to third persons
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A claim based on a contract entered into by a custodian acting in a custodial capacity, an obligation arising from the ownership or control of custodial property, or a tort committed during the custodianship, may be asserted against the custodial property by proceeding against th…
SDCL § 55-10A-2 Scope and jurisdiction
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This chapter applies to any transfer that refers to this chapter in the designation under § 55-10A-9 by which the transfer is made if at the time of the transfer, the transferor, the minor or the custodian is a resident of this state or the custodial property is located in this s…
SDCL § 55-10A-20 Renunciation, resignation, death, or removal of custodian--Designation of successor custodian
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Any person nominated under § 55-10A-3 or designated under § 55-10A-9 as custodian may decline to serve by delivering a valid disclaimer to the person who made the nomination or to the transferor or the transferor's legal representative. If the event giving rise to a transfer has …
SDCL § 55-10A-21 Accounting by and determination of liability of custodian
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A minor who has attained the age of fourteen years, the minor's guardian conservator, or other legal representative, an adult member of the minor's family, a transferor, or a transferor's legal representative may petition the court for an accounting by the custodian or the custod…
SDCL § 55-10A-22 Termination of custodianship
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The custodian shall transfer in an appropriate manner the custodial property to the minor or to the minor's estate upon the earlier of: (1) The minor's attainment of eighteen years of age with respect to custodial property transferred under § 55-10A-4 , 55-10A-5 , 55-10A-6 or 55-…