<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-1-22 - Hybrid purpose trusts valid. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072526Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072526SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072526CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072526Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072526DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072526000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072526SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072526SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072526Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-22"><span class="s2072526SENU">55-1-22</span></a><span xml:space="preserve" class="s2072526SENU">. </span><span class="s2072526CL">Hybrid purpose trusts valid.</span></p><p dir="ltr" class="s2072526Normal-000000"><span xml:space="preserve" class="s2072526DefaultParagraphFont">A hybrid purpose trust which meets the description of a purpose trust in §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-20"><span class="s2072526DefaultParagraphFont">55-1-20</span></a><span xml:space="preserve" class="s2072526DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-21.10"><span class="s2072526DefaultParagraphFont">55-1-21.10</span></a><span class="s2072526DefaultParagraphFont">, inclusive, also includes one or more beneficiaries is valid and may be performed.</span></p><p dir="ltr" class="s2072526Normal"><span xml:space="preserve" class="s2072526000001"> </span></p><p dir="ltr" class="s2072526Normal"><span class="s2072526SCL">Source:</span><span xml:space="preserve" class="s2072526SCL-000002"> SL 2006, ch 247, § 3; SL 2018, ch 275, § 14.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-1-22 - Hybrid purpose trusts valid. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072527Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072527SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072527CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072527Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072527DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072527000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072527SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072527SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072527Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-22.1"><span class="s2072527SENU">55-1-22.1</span></a><span xml:space="preserve" class="s2072527SENU">. </span><span class="s2072527CL">Separate shares for beneficiaries and purposes to be maintained in hybrid purpose trust.</span></p><p dir="ltr" class="s2072527Normal-000000"><span class="s2072527DefaultParagraphFont">In a hybrid purpose trust when the interests of the beneficiaries and purposes are concurrent, the trustee shall maintain not less than two separate shares, one for the beneficiaries; and a second for the purposes, and the trustee may be liable to the beneficiaries for the actual damages caused thereby, if any, for failing to do so.</span></p><p dir="ltr" class="s2072527Normal"><span xml:space="preserve" class="s2072527000001"> </span></p><p dir="ltr" class="s2072527Normal"><span class="s2072527SCL">Source:</span><span xml:space="preserve" class="s2072527SCL-000002"> SL 2018, ch 275, § 15.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-1-22 - Hybrid purpose trusts valid. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072528Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072528SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072528CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072528Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072528DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072528000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072528SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072528SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072528Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-22.2"><span class="s2072528SENU">55-1-22.2</span></a><span xml:space="preserve" class="s2072528SENU">. </span><span class="s2072528CL">Beneficiaries' share of a hybrid purpose trust.</span></p><p dir="ltr" class="s2072528Normal-000000"><span xml:space="preserve" class="s2072528DefaultParagraphFont">The beneficiaries' share of a hybrid purpose trust is governed by §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=43-5-8"><span class="s2072528DefaultParagraphFont">43-5-8</span></a><span xml:space="preserve" class="s2072528DefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=43-6-7"><span class="s2072528DefaultParagraphFont">43-6-7</span></a><span class="s2072528DefaultParagraphFont">.</span></p><p dir="ltr" class="s2072528Normal"><span xml:space="preserve" class="s2072528000001"> </span></p><p dir="ltr" class="s2072528Normal"><span class="s2072528SCL">Source:</span><span xml:space="preserve" class="s2072528SCL-000002"> SL 2018, ch 275, § 16.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-1-22 - Hybrid purpose trusts valid. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072529Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072529SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072529CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072529Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072529DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072529Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072529000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072529SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072529SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072529Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-22.3"><span class="s2072529SENU">55-1-22.3</span></a><span xml:space="preserve" class="s2072529SENU">. </span><span class="s2072529CL">Spendthrift provision in hybrid purpose trust--Qualified dispositions in trust.</span></p><p dir="ltr" class="s2072529Normal-000000"><span class="s2072529DefaultParagraphFont">A hybrid purpose trust may:</span></p><p dir="ltr" class="s2072529Normal-000001"><span class="s2072529DefaultParagraphFont">(1)    Contain a spendthrift provision; and</span></p><p dir="ltr" class="s2072529Normal-000001"><span xml:space="preserve" class="s2072529DefaultParagraphFont">(2)    Also qualify as a trust described in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-2"><span class="s2072529DefaultParagraphFont">55-16-2</span></a><span class="s2072529DefaultParagraphFont">.</span></p><p dir="ltr" class="s2072529Normal"><span xml:space="preserve" class="s2072529000002"> </span></p><p dir="ltr" class="s2072529Normal"><span class="s2072529SCL">Source:</span><span xml:space="preserve" class="s2072529SCL-000003"> SL 2018, ch 275, § 17.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-1-22 - Hybrid purpose trusts valid. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072530Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072530SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072530CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072530Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072530DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072530Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2072530000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072530SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072530SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072530Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-22.4"><span class="s2072530SENU">55-1-22.4</span></a><span xml:space="preserve" class="s2072530SENU">. </span><span xml:space="preserve" class="s2072530CL">Application of §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-21"><span class="s2072530CL">55-1-21</span></a><span xml:space="preserve" class="s2072530CL"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-21.9"><span class="s2072530CL">55-1-21.9</span></a><span xml:space="preserve" class="s2072530CL"> to hybrid purpose trust--Exceptions.</span></p><p dir="ltr" class="s2072530Normal-000000"><span xml:space="preserve" class="s2072530DefaultParagraphFont">The provisions of §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-21"><span class="s2072530DefaultParagraphFont">55-1-21</span></a><span xml:space="preserve" class="s2072530DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-21.9"><span class="s2072530DefaultParagraphFont">55-1-21.9</span></a><span class="s2072530DefaultParagraphFont">, inclusive, apply to a hybrid purpose trust except that:</span></p><p dir="ltr" class="s2072530Normal-000001"><span xml:space="preserve" class="s2072530DefaultParagraphFont">(1)    Under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-21.1"><span class="s2072530DefaultParagraphFont">55-1-21.1</span></a><span class="s2072530DefaultParagraphFont">, except as otherwise provided in the governing instrument, a trust as described in subdivision 55-1-21(1) terminates when no living animal is covered by the trust unless the trust may continue for the benefit of the beneficiaries; and</span></p><p dir="ltr" class="s2072530Normal-000001"><span xml:space="preserve" class="s2072530DefaultParagraphFont">(2)    Under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-21.2"><span class="s2072530DefaultParagraphFont">55-1-21.2</span></a><span class="s2072530DefaultParagraphFont">, a court has no power to reduce the amount of trust property intended for or allocated to any beneficiaries or any charitable purposes.</span></p><p dir="ltr" class="s2072530Normal"><span xml:space="preserve" class="s2072530000002"> </span></p><p dir="ltr" class="s2072530Normal"><span class="s2072530SCL">Source:</span><span xml:space="preserve" class="s2072530SCL-000003"> SL 2018, ch 275, § 18.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-1-22 - Hybrid purpose trusts valid. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072531Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072531SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072531CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072531Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072531DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072531000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072531SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072531SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2072531Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-22.5"><span class="s2072531SENU">55-1-22.5</span></a><span xml:space="preserve" class="s2072531SENU">. </span><span class="s2072531CL">Discretion of trustee of hybrid purpose trust.</span></p><p dir="ltr" class="s2072531Normal-000000"><span class="s2072531DefaultParagraphFont">Except as otherwise provided in the governing instrument, a trustee of a hybrid purpose trust is vested with full discretion in administering the trust and considering the best interests of the beneficiaries and the purposes of the trust.</span></p><p dir="ltr" class="s2072531Normal"><span xml:space="preserve" class="s2072531000001"> </span></p><p dir="ltr" class="s2072531Normal"><span class="s2072531SCL">Source:</span><span xml:space="preserve" class="s2072531SCL-000002"> SL 2018, ch 275, § 19.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-1-22 - Hybrid purpose trusts valid. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072532Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072532SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072532CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072532Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072532DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072532000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072532SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072532SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2072532Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-22.6"><span class="s2072532SENU">55-1-22.6</span></a><span xml:space="preserve" class="s2072532SENU">. </span><span class="s2072532CL">Enforcer of hybrid purpose trust.</span></p><p dir="ltr" class="s2072532Normal-000000"><span xml:space="preserve" class="s2072532DefaultParagraphFont">In addition to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-21.4"><span class="s2072532DefaultParagraphFont">55-1-21.4</span></a><span class="s2072532DefaultParagraphFont">, an enforcer may also not be a beneficiary of a hybrid purpose trust.</span></p><p dir="ltr" class="s2072532Normal"><span xml:space="preserve" class="s2072532000001"> </span></p><p dir="ltr" class="s2072532Normal"><span class="s2072532SCL">Source:</span><span xml:space="preserve" class="s2072532SCL-000002"> SL 2018, ch 275, § 20.</span></p></div></body></html>