<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 55-1-40 - Language resulting in classification of distribution interest. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072554Normal { 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.s2072554SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072554CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072554Normal-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.s2072554DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072554Normal-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.s2072554Normal-000002 { margin-left: 1.14in; text-indent: -0.44in; 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.s2072554000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072554SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072554SCL-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="s2072554Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-40"><span class="s2072554SENU">55-1-40</span></a><span xml:space="preserve" class="s2072554SENU">. </span><span class="s2072554CL">Language resulting in classification of distribution interest.</span></p><p dir="ltr" class="s2072554Normal-000000"><span class="s2072554DefaultParagraphFont">Although not the exclusive means to create a distribution interest, absent clear and convincing evidence to the contrary, the following language by itself results in the following classification of distribution interest:</span></p><p dir="ltr" class="s2072554Normal-000001"><span class="s2072554DefaultParagraphFont">(1)    Mandatory interest:</span></p><p dir="ltr" class="s2072554Normal-000002"><span class="s2072554DefaultParagraphFont">(a)    "All income shall be distributed to (named beneficiary)"; or</span></p><p dir="ltr" class="s2072554Normal-000002"><span class="s2072554DefaultParagraphFont">(b)    "One hundred thousand dollars a year shall be distributed to (named beneficiary)";</span></p><p dir="ltr" class="s2072554Normal-000001"><span class="s2072554DefaultParagraphFont">(2)    Support interest:</span></p><p dir="ltr" class="s2072554Normal-000002"><span class="s2072554DefaultParagraphFont">(a)    "The trustee shall make distributions for health, education, maintenance, and support";</span></p><p dir="ltr" class="s2072554Normal-000001"><span class="s2072554DefaultParagraphFont">(3)    Discretionary interest:</span></p><p dir="ltr" class="s2072554Normal-000002"><span class="s2072554DefaultParagraphFont">(a)    "The trustee, may, in the trustee's sole and absolute discretion make distributions for health, education, maintenance, and support";</span></p><p dir="ltr" class="s2072554Normal-000002"><span class="s2072554DefaultParagraphFont">(b)    "The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support";</span></p><p dir="ltr" class="s2072554Normal-000002"><span class="s2072554DefaultParagraphFont">(c)    "The trustee may make distributions for health, education, maintenance, and support";</span></p><p dir="ltr" class="s2072554Normal-000002"><span class="s2072554DefaultParagraphFont">(d)    "The trustee shall make distributions for health, education, maintenance, and support. The trustees may exclude any of the beneficiaries or may make unequal distributions among them";</span></p><p dir="ltr" class="s2072554Normal-000002"><span class="s2072554DefaultParagraphFont">(e)    "The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare.</span></p><p dir="ltr" class="s2072554Normal"><span xml:space="preserve" class="s2072554000003"> </span></p><p dir="ltr" class="s2072554Normal"><span class="s2072554SCL">Source:</span><span xml:space="preserve" class="s2072554SCL-000004"> SL 2007, ch 280, § 17; SL 2008, ch 257, § 7.</span></p></div></body></html>