<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 55-1-39 - Bifurcation of trust. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072553Normal { 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.s2072553SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072553CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072553Normal-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.s2072553DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072553Normal-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.s2072553000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072553SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072553SCL-000003 { 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="s2072553Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-39"><span class="s2072553SENU">55-1-39</span></a><span xml:space="preserve" class="s2072553SENU">. </span><span class="s2072553CL">Bifurcation of trust.</span></p><p dir="ltr" class="s2072553Normal-000000"><span class="s2072553DefaultParagraphFont">To the extent a trust contains any combination of a mandatory provision, a support provision, the trust shall be bifurcated as follows:</span></p><p dir="ltr" class="s2072553Normal-000001"><span class="s2072553DefaultParagraphFont">(1)    The trust shall be a mandatory interest only to the extent of the mandatory language;</span></p><p dir="ltr" class="s2072553Normal-000001"><span class="s2072553DefaultParagraphFont">(2)    The trust shall be a support interest only to the extent of such support language;</span></p><p dir="ltr" class="s2072553Normal-000001"><span class="s2072553DefaultParagraphFont">(3)    The remaining trust property shall be held as a discretionary interest;</span></p><p dir="ltr" class="s2072553Normal-000001"><span class="s2072553DefaultParagraphFont">(4)    A support interest that includes mandatory language such as "shall" but is subsequently qualified by discretionary language, shall be classified as a discretionary interest and not as a support interest.</span></p><p dir="ltr" class="s2072553Normal"><span xml:space="preserve" class="s2072553000002"> </span></p><p dir="ltr" class="s2072553Normal"><span class="s2072553SCL">Source:</span><span xml:space="preserve" class="s2072553SCL-000003"> SL 2007, ch 280, § 16.</span></p></div></body></html>