<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 55-1-26 - Judicial foreclosure of beneficial interests, powers of appointment, and reserved powers prohibited--Creditors may not reach powers of appointment or remainder interests. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072538Normal { 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.s2072538SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072538CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072538Normal-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.s2072538DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072538Normal-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; } p.s2072538Normal-000002 { text-indent: 0.25in; 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.s2072538000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072538SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072538SCL-000004 { 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="s2072538Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-26"><span class="s2072538SENU">55-1-26</span></a><span xml:space="preserve" class="s2072538SENU">. </span><span class="s2072538CL">Judicial foreclosure of beneficial interests, powers of appointment, and reserved powers prohibited--Creditors may not reach powers of appointment or remainder interests.</span></p><p dir="ltr" class="s2072538Normal-000000"><span class="s2072538DefaultParagraphFont">Regardless of whether or not a trust contains a spendthrift provision:</span></p><p dir="ltr" class="s2072538Normal-000001"><span class="s2072538DefaultParagraphFont">(1)    No beneficial interest, power of appointment, or reserved power in a trust may be judicially foreclosed;</span></p><p dir="ltr" class="s2072538Normal-000001"><span class="s2072538DefaultParagraphFont">(2)    No creditor may reach a power of appointment or a remainder interest at the trust level. The creditor shall wait until the funds are distributed before the creditor may reach the funds; and</span></p><p dir="ltr" class="s2072538Normal-000001"><span class="s2072538DefaultParagraphFont">(3)    No power of appointment is property or an interest in property.</span></p><p dir="ltr" class="s2072538Normal-000002"><span class="s2072538DefaultParagraphFont">For purposes of this section, power of appointment is held by a person to whom a power has been given, not the settlor.</span></p><p dir="ltr" class="s2072538Normal"><span xml:space="preserve" class="s2072538000003"> </span></p><p dir="ltr" class="s2072538Normal"><span class="s2072538SCL">Source:</span><span xml:space="preserve" class="s2072538SCL-000004"> SL 2007, ch 280, § 3; SL 2009, ch 252, § 3; SL 2016, ch 231, § 12.</span></p></div></body></html>