<HTML> <HEAD> <HTML> <HEAD> <meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-13A - UNIFORM PRINCIPAL AND INCOME ACT 55-13A UNIFORM PRINCIPAL AND INCOME ACT </title> <META NAME="Keywords" Content="South Dakota Codified Laws SDCL 55-13A UNIFORM PRINCIPAL AND INCOME ACT "> <META NAME="Description" Content="South Dakota Codified Laws 55-13A"> </HEAD> <BODY> <!-- File converted by Wp2Html Version 4.0 --> <!-- Email Andrew@brackenbeds.co.uk for more details --> <!-- WP Style Open: System_34 --><!-- WP Style End: System_34 --> <Div align="full"> <!-- WP Paired Style On: HG4 --><Div align="center"><!-- WP Style End: HG4 --> CHAPTER 55-13A <!-- WP Paired Style Off: HG4 --><!-- WP Style End: HG4 --> </Div> <br> <!-- WP Paired Style On: HG4C --><Div align="center"><!-- WP Style End: HG4C --> UNIFORM PRINCIPAL AND INCOME ACT <!-- WP Paired Style Off: HG4C --><!-- WP Style End: HG4C --> </Div> <br> <!-- WP Paired Style On: AHG6 --><Div align="center"><!-- WP Style End: AHG6 --> ARTICLE 1. DEFINITIONS AND FIDUCIARY DUTIES. <!-- WP Paired Style Off: AHG6 --><!-- WP Style End: AHG6 --> </Div> <br> <p> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-101">55-13A-101</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Short title. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-102">55-13A-102</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Definitions. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-103">55-13A-103</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Fiduciary duties--General principles. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-104">55-13A-104</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Trustee's power to adjust. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-105">55-13A-105</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Judicial control of discretionary power. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: AHG6 --><Div align="center"><!-- WP Style End: AHG6 --> ARTICLE 2. DECEDENT'S ESTATE OR TERMINATING INCOME INTEREST. <!-- WP Paired Style Off: AHG6 --><!-- WP Style End: AHG6 --> </Div> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-201">55-13A-201</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Determination and distribution of net income. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-202">55-13A-202</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Distribution to residuary and remainder beneficiaries. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: AHG6 --><Div align="center"><!-- WP Style End: AHG6 --> ARTICLE 3. APPORTIONMENT AT BEGINNING AND END OF INCOME INTEREST. <!-- WP Paired Style Off: AHG6 --><!-- WP Style End: AHG6 --> </Div> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-301">55-13A-301</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> When right to income begins and ends. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-302">55-13A-302</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Apportionment of receipts and disbursements when decedent dies or income interest begins. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-303">55-13A-303</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Apportionment when income interest ends. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: AHG6 --><Div align="center"><!-- WP Style End: AHG6 --> ARTICLE 4. ALLOCATION OF RECEIPTS DURING ADMINISTRATION OF TRUST. <!-- WP Paired Style Off: AHG6 --><!-- WP Style End: AHG6 --> </Div> <br> <!-- WP Paired Style On: AHG8 --><Div align="center"><!-- WP Style End: AHG8 --> PART 1. RECEIPTS FROM ENTITIES. <!-- WP Paired Style Off: AHG8 --><!-- WP Style End: AHG8 --> </Div> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-401">55-13A-401</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Character of receipts. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-402">55-13A-402</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Distribution from trust or estate. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-403">55-13A-403</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Business and other activities conducted by trustee. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: AHG8 --><Div align="center"><!-- WP Style End: AHG8 --> PART 2. RECEIPTS NOT NORMALLY APPORTIONED. <!-- WP Paired Style Off: AHG8 --><!-- WP Style End: AHG8 --> </Div> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-404">55-13A-404</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Principal receipts. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-405">55-13A-405</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Rental property. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-406">55-13A-406</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Obligation to pay money. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-407">55-13A-407</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Insurance policies and similar contracts. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: AHG8 --><Div align="center"><!-- WP Style End: AHG8 --> PART 3. RECEIPTS NORMALLY APPORTIONED. <!-- WP Paired Style Off: AHG8 --><!-- WP Style End: AHG8 --> </Div> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-408">55-13A-408</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Insubstantial allocations not required. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-409">55-13A-409</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Deferred compensation, annuities, and similar payments. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-410">55-13A-410</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Liquidating asset. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-411">55-13A-411</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Minerals, water, and other natural resources. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-412">55-13A-412</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Timber. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-413">55-13A-413</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Property not productive of income. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-414">55-13A-414</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Derivatives and options. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-415">55-13A-415</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Asset-backed securities. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: AHG6 --><Div align="center"><!-- WP Style End: AHG6 --> ARTICLE 5. ALLOCATION OF DISBURSEMENTS DURING ADMINISTRATION OF</Div> TRUST. <!-- WP Paired Style Off: AHG6 --><!-- WP Style End: AHG6 --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-501">55-13A-501</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Disbursements from income. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-502">55-13A-502</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Disbursements from principal. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-503">55-13A-503</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Transfers from income to principal for depreciation. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-504">55-13A-504</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Transfers from income to reimburse principal. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-505">55-13A-505</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Income taxes. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-506">55-13A-506</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Adjustments between principal and income because of taxes. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: AHG6 --><Div align="center"><!-- WP Style End: AHG6 --> ARTICLE 6. MISCELLANEOUS PROVISIONS. <!-- WP Paired Style Off: AHG6 --><!-- WP Style End: AHG6 --> </Div> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-601">55-13A-601</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Uniformity of application and construction. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <br> <!-- WP Paired Style On: B --><!-- WP Style End: B --> <A HREF="/statutes/DisplayStatute.aspx?Type=Statute&Statute=55-13A-602">55-13A-602</A> <!-- WP Style Open: IN -->&nbsp;&nbsp;&nbsp;&nbsp;<!-- WP Style End: IN --> Application of chapter to existing trusts and estates. <!-- WP Paired Style Off: B --><!-- WP Style End: B --> <p> </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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072929Normal { 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.s2072929SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072929CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072929Normal-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.s2072929DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072929000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072929SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072929SCL-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="s2072929Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-101"><span class="s2072929SENU">55-13A-101</span></a><span xml:space="preserve" class="s2072929SENU">. </span><span class="s2072929CL">Short title.</span></p><p dir="ltr" class="s2072929Normal-000000"><span class="s2072929DefaultParagraphFont">This chapter may be cited as the Uniform Principal and Income Act.</span></p><p dir="ltr" class="s2072929Normal"><span xml:space="preserve" class="s2072929000001"> </span></p><p dir="ltr" class="s2072929Normal"><span class="s2072929SCL">Source:</span><span xml:space="preserve" class="s2072929SCL-000002"> SL 2007, ch 282, § 1.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072930Normal { 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.s2072930SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072930CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072930Normal-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.s2072930DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072930Normal-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.s2072930000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072930SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072930SCL-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="s2072930Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-102"><span class="s2072930SENU">55-13A-102</span></a><span xml:space="preserve" class="s2072930SENU">. </span><span class="s2072930CL">Definitions.</span></p><p dir="ltr" class="s2072930Normal-000000"><span class="s2072930DefaultParagraphFont">In this chapter:</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(1)    "Accounting period" means a calendar year unless another twelve-month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve-month period that begins when an income interest begins or ends when an income interest ends;</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(2)    "Beneficiary" includes, in the case of a decedent's estate, an heir, legatee, and devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary;</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(3)    "Fiduciary" means a personal representative or a trustee. The term includes an executor, administrator, successor personal representative, special administrator, and a person performing substantially the same function;</span></p><p dir="ltr" class="s2072930Normal-000001"><span xml:space="preserve" class="s2072930DefaultParagraphFont">(4)    "Income" means money or property that a fiduciary receives as current return from a principal asset. The term includes a portion of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in §§ 55-13A- 401 to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-415"><span class="s2072930DefaultParagraphFont">55-13A-415</span></a><span class="s2072930DefaultParagraphFont">, inclusive;</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(5)    "Income beneficiary" means a person to whom net income of a trust is or may be payable;</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(6)    "Income interest" means the right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion;</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(7)    "Mandatory income interest" means the right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute;</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(8)    "Net income" means the total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under this chapter to or from income during the period;</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(9)    "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government; governmental subdivision, agency, or instrumentality; public corporation, or any other legal or commercial entity;</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(10)    "Principal" means property held in trust for distribution to a remainder beneficiary when the trust terminates;</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(11)    "Remainder beneficiary" means a person entitled to receive principal when an income interest ends;</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(12)    "Terms of a trust" means the manifestation of the intent of a settlor or decedent with respect to the trust, expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct;</span></p><p dir="ltr" class="s2072930Normal-000001"><span class="s2072930DefaultParagraphFont">(13)    "Trustee" includes an original, additional, or successor trustee, whether or not appointed or confirmed by a court.</span></p><p dir="ltr" class="s2072930Normal"><span xml:space="preserve" class="s2072930000002"> </span></p><p dir="ltr" class="s2072930Normal"><span class="s2072930SCL">Source:</span><span xml:space="preserve" class="s2072930SCL-000003"> SL 2007, ch 282, § 2.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072931Normal { 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.s2072931SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072931CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072931Normal-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.s2072931DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072931Normal-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.s2072931Normal-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.s2072931000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072931SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072931SCL-000004 { 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="s2072931Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-103"><span class="s2072931SENU">55-13A-103</span></a><span xml:space="preserve" class="s2072931SENU">. </span><span class="s2072931CL">Fiduciary duties--General principles.</span></p><p dir="ltr" class="s2072931Normal-000000"><span class="s2072931DefaultParagraphFont">(a) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of Articles 2 and 3, a fiduciary:</span></p><p dir="ltr" class="s2072931Normal-000001"><span class="s2072931DefaultParagraphFont">(1)    Shall administer a trust or estate in accordance with the terms of the trust or the will, even if there is a different provision in this chapter;</span></p><p dir="ltr" class="s2072931Normal-000001"><span class="s2072931DefaultParagraphFont">(2)    May administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by this chapter;</span></p><p dir="ltr" class="s2072931Normal-000001"><span class="s2072931DefaultParagraphFont">(3)    Shall administer a trust or estate in accordance with this chapter if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration; and</span></p><p dir="ltr" class="s2072931Normal-000001"><span class="s2072931DefaultParagraphFont">(4)    Shall add a receipt or charge a disbursement to principal to the extent that the terms of the trust and this chapter do not provide a rule for allocating the receipt or disbursement to or between principal and income.</span></p><p dir="ltr" class="s2072931Normal-000002"><span class="s2072931DefaultParagraphFont">(b) In exercising the power to adjust under § 55-13A-104(a) or a discretionary power of administration regarding a matter within the scope of this chapter, whether granted by the terms of a trust, a will, or this chapter, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intention that the fiduciary shall or may favor one or more of the beneficiaries. A determination in accordance with this chapter is presumed to be fair and reasonable to all of the beneficiaries.</span></p><p dir="ltr" class="s2072931Normal"><span xml:space="preserve" class="s2072931000003"> </span></p><p dir="ltr" class="s2072931Normal"><span class="s2072931SCL">Source:</span><span xml:space="preserve" class="s2072931SCL-000004"> SL 2007, ch 282, § 3.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072932Normal { 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.s2072932SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072932CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072932Normal-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.s2072932DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072932Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } p.s2072932Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2072932000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072932SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072932SCL-000004 { 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="s2072932Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-104"><span class="s2072932SENU">55-13A-104</span></a><span xml:space="preserve" class="s2072932SENU">. </span><span class="s2072932CL">Trustee's power to adjust.</span></p><p dir="ltr" class="s2072932Normal-000000"><span class="s2072932DefaultParagraphFont">(a) A trustee may adjust between principal and income to the extent the trustee considers necessary if the trustee invests and manages trust assets as a prudent investor, the terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to the trust's income, and the trustee determines, after applying the rules in § 55-13A-103(a), that the trustee is unable to comply with § 55-13A-103(b).</span></p><p dir="ltr" class="s2072932Normal-000001"><span class="s2072932DefaultParagraphFont">(b) In deciding whether and to what extent to exercise the power conferred by subsection (a), a trustee shall consider all factors relevant to the trust and its beneficiaries, including the following factors to the extent they are relevant:</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(1)    The nature, purpose, and expected duration of the trust;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(2)    The intent of the settlor;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(3)    The identity and circumstances of the beneficiaries;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(4)    The needs for liquidity, regularity of income, and preservation and appreciation of capital;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(5)    The assets held in the trust; the extent to which they consist of financial assets, interests in closely held enterprises, tangible and intangible personal property, or real property; the extent to which an asset is used by a beneficiary; and whether an asset was purchased by the trustee or received from the settlor;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(6)    The net amount allocated to income under the other sections of this chapter and the increase or decrease in the value of the principal assets, which the trustee may estimate as to assets for which market values are not readily available;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(7)    Whether and to what extent the terms of the trust give the trustee the power to invade principal or accumulate income or prohibit the trustee from invading principal or accumulating income, and the extent to which the trustee has exercised a power from time to time to invade principal or accumulate income;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(8)    The actual and anticipated effect of economic conditions on principal and income and effects of inflation and deflation; and</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(9)    The anticipated tax consequences of an adjustment.</span></p><p dir="ltr" class="s2072932Normal-000001"><span class="s2072932DefaultParagraphFont">(c) A trustee may not make an adjustment:</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(1)    That diminishes the income interest in a trust that requires all of the income to be paid at least annually to a spouse and for which an estate tax or gift tax marital deduction would be allowed, in whole or in part, if the trustee did not have the power to make the adjustment;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(2)    That reduces the actuarial value of the income interest in a trust to which a person transfers property with the intent to qualify for a gift tax exclusion;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(3)    That changes the amount payable to a beneficiary as a fixed annuity or a fixed fraction of the value of the trust assets;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(4)    From any amount that is permanently set aside for charitable purposes under a will or the terms of a trust unless both income and principal are so set aside;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(5)    If possessing or exercising the power to make an adjustment causes an individual to be treated as the owner of all or part of the trust for income tax purposes, and the individual would not be treated as the owner if the trustee did not possess the power to make an adjustment;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(6)    If possessing or exercising the power to make an adjustment causes all or part of the trust assets to be included for estate tax purposes in the estate of an individual who has the power to remove a trustee or appoint a trustee, or both, and the assets would not be included in the estate of the individual if the trustee did not possess the power to make an adjustment;</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(7)    If the trustee is a beneficiary of the trust; or</span></p><p dir="ltr" class="s2072932Normal-000002"><span class="s2072932DefaultParagraphFont">(8)    If the trustee is not a beneficiary, but the adjustment would benefit the trustee directly or indirectly.</span></p><p dir="ltr" class="s2072932Normal-000002"><span xml:space="preserve" class="s2072932000003"> </span></p></div><div><p dir="ltr" class="s2072932Normal-000001"><span class="s2072932DefaultParagraphFont">(d) If subsection (c)(5), (6), (7), or (8) applies to a trustee and there is more than one trustee, a cotrustee to whom the provision does not apply may make the adjustment unless the exercise of the power by the remaining trustee or trustees is not permitted by the terms of the trust.</span></p><p dir="ltr" class="s2072932Normal-000001"><span class="s2072932DefaultParagraphFont">(e) A trustee may release the entire power conferred by subsection (a) or may release only the power to adjust from income to principal or the power to adjust from principal to income if the trustee is uncertain about whether possessing or exercising the power will cause a result described in subsection (c)(1) through (6) or (c)(8) or if the trustee determines that possessing or exercising the power will or may deprive the trust of a tax benefit or impose a tax burden not described in subsection (c). The release may be permanent or for a specified period, including a period measured by the life of an individual.</span></p><p dir="ltr" class="s2072932Normal-000001"><span class="s2072932DefaultParagraphFont">(f) Terms of a trust that limit the power of a trustee to make an adjustment between principal and income do not affect the application of this section unless it is clear from the terms of the trust that the terms are intended to deny the trustee the power of adjustment conferred by subsection (a).</span></p><p dir="ltr" class="s2072932Normal-000001"><span class="s2072932DefaultParagraphFont">(g) Unless prohibited by the governing instrument, the trustee of a trust has the power to consider gains from the sale of capital assets in the trust to be part of a distribution of principal to a beneficiary, or part of an adjustment from principal to income, and if such power is exercised, such gains shall be treated consistently by the trustee on the trust's books, records, and tax returns as part of a distribution to a beneficiary.</span></p><p dir="ltr" class="s2072932Normal"><span xml:space="preserve" class="s2072932000003"> </span></p><p dir="ltr" class="s2072932Normal"><span class="s2072932SCL">Source:</span><span xml:space="preserve" class="s2072932SCL-000004"> SL 2007, ch 282, § 4; SL 2009, ch 252, § 33.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072933Normal { 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.s2072933SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072933CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072933Normal-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.s2072933DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072933Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } p.s2072933Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2072933000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072933SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072933SCL-000004 { 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="s2072933Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-105"><span class="s2072933SENU">55-13A-105</span></a><span xml:space="preserve" class="s2072933SENU">. </span><span class="s2072933CL">Judicial control of discretionary power.</span></p><p dir="ltr" class="s2072933Normal-000000"><span class="s2072933DefaultParagraphFont">(a) The court may not order a fiduciary to change a decision to exercise or not to exercise a discretionary power conferred by this chapter unless it determines that the decision was an abuse of the fiduciary's discretion. A fiduciary's decision is not an abuse of discretion merely because the court would have exercised the power in a different manner or would not have exercised the power.</span></p><p dir="ltr" class="s2072933Normal-000001"><span class="s2072933DefaultParagraphFont">(b) The decisions to which subsection (a) applies include:</span></p><p dir="ltr" class="s2072933Normal-000002"><span class="s2072933DefaultParagraphFont">(1)    A decision under § 55-13A-104(a) as to whether and to what extent an amount should be transferred from principal to income or from income to principal;</span></p><p dir="ltr" class="s2072933Normal-000002"><span class="s2072933DefaultParagraphFont">(2)    A decision regarding the factors that are relevant to the trust and its beneficiaries, the extent to which the factors are relevant, and the weight, if any, to be given to those factors, in deciding whether and to what extent to exercise the discretionary power conferred by § 55-13A-104(a).</span></p><p dir="ltr" class="s2072933Normal-000001"><span class="s2072933DefaultParagraphFont">(c) If the court determines that a fiduciary has abused the fiduciary's discretion, the court may place the income and remainder beneficiaries in the positions they would have occupied if the discretion had not been abused, according to the following rules:</span></p><p dir="ltr" class="s2072933Normal-000002"><span class="s2072933DefaultParagraphFont">(1)    To the extent that the abuse of discretion has resulted in no distribution to a beneficiary or in a distribution that is too small, the court shall order the fiduciary to distribute from the trust to the beneficiary an amount that the court determines will restore the beneficiary, in whole or in part, to the beneficiary's appropriate position;</span></p><p dir="ltr" class="s2072933Normal-000002"><span class="s2072933DefaultParagraphFont">(2)    To the extent that the abuse of discretion has resulted in a distribution to a beneficiary which is too large, the court shall place the beneficiaries, the trust, or both, in whole or in part, in their appropriate positions by ordering the fiduciary to withhold an amount from one or more future distributions to the beneficiary who received the distribution that was too large or ordering that beneficiary to return some or all of the distribution to the trust;</span></p><p dir="ltr" class="s2072933Normal-000002"><span class="s2072933DefaultParagraphFont">(3)    To the extent that the court is unable, after applying paragraphs (1) and (2), to place the beneficiaries, the trust, or both, in the positions they would have occupied if the discretion had not been abused, the court may order the fiduciary to pay an appropriate amount from its own funds to one or more of the beneficiaries or the trust or both.</span></p><p dir="ltr" class="s2072933Normal-000001"><span class="s2072933DefaultParagraphFont">(d) Upon petition by the fiduciary, the court having jurisdiction over a trust or estate shall determine whether a proposed exercise or nonexercise by the fiduciary of a discretionary power conferred by this chapter will result in an abuse of the fiduciary's discretion. If the petition describes the proposed exercise or nonexercise of the power and contains sufficient information to inform the beneficiaries of the reasons for the proposal, the facts upon which the fiduciary relies, and an explanation of how the income and remainder beneficiaries will be affected by the proposed exercise or nonexercise of the power, a beneficiary who challenges the proposed exercise or nonexercise has the burden of establishing that it will result in an abuse of discretion.</span></p><p dir="ltr" class="s2072933Normal"><span xml:space="preserve" class="s2072933000003"> </span></p><p dir="ltr" class="s2072933Normal"><span class="s2072933SCL">Source:</span><span xml:space="preserve" class="s2072933SCL-000004"> SL 2007, ch 282, § 5.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072934Normal { 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.s2072934SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072934CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072934Normal-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.s2072934DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072934Normal-000001 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2072934Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2072934000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072934SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072934SCL-000004 { 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="s2072934Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-201"><span class="s2072934SENU">55-13A-201</span></a><span xml:space="preserve" class="s2072934SENU">. </span><span class="s2072934CL">Determination and distribution of net income.</span></p><p dir="ltr" class="s2072934Normal-000000"><span class="s2072934DefaultParagraphFont">After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply:</span></p><p dir="ltr" class="s2072934Normal-000001"><span class="s2072934DefaultParagraphFont">(1)    A fiduciary of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property specifically given to a beneficiary under the rules in Articles 3 through 5 which apply to trustees and the rules in paragraph (5). The fiduciary shall distribute the net income and net principal receipts to the beneficiary who is to receive the specific property;</span></p><p dir="ltr" class="s2072934Normal-000001"><span class="s2072934DefaultParagraphFont">(2)    A fiduciary shall determine the remaining net income of a decedent's estate or a terminating income interest under the rules in Articles 3 through 5 which apply to trustees and by:</span></p><p dir="ltr" class="s2072934Normal-000002"><span class="s2072934DefaultParagraphFont">(A)    Including in net income all income from property used to discharge liabilities;</span></p><p dir="ltr" class="s2072934Normal-000002"><span class="s2072934DefaultParagraphFont">(B)    Paying from income or principal, in the fiduciary's discretion, fees of attorneys, accountants, and fiduciaries; court costs and other expenses of administration; and interest on death taxes, but the fiduciary may pay those expenses from income of property passing to a trust for which the fiduciary claims an estate tax marital or charitable deduction only to the extent that the payment of those expenses from income will not cause the reduction or loss of the deduction; and</span></p><p dir="ltr" class="s2072934Normal-000002"><span class="s2072934DefaultParagraphFont">(C)    Paying from principal all other disbursements made or incurred in connection with the settlement of a decedent's estate or the winding up of a terminating income interest, including debts, funeral expenses, disposition of remains, family allowances, and death taxes and related penalties that are apportioned to the estate or terminating income interest by the will, the terms of the trust, or applicable law.</span></p><p dir="ltr" class="s2072934Normal-000001"><span class="s2072934DefaultParagraphFont">(3)    A fiduciary shall distribute to a beneficiary who receives a pecuniary amount outright the interest or any other amount provided by the will, the terms of the trust, or applicable law from net income determined under paragraph (2) or from principal to the extent that net income is insufficient. If a beneficiary is to receive a pecuniary amount outright from a trust after an income interest ends and no interest or other amount is provided for by the terms of the trust or applicable law, the fiduciary shall distribute the interest or other amount to which the beneficiary would be entitled under applicable law if the pecuniary amount were required to be paid under a will.</span></p><p dir="ltr" class="s2072934Normal-000001"><span xml:space="preserve" class="s2072934DefaultParagraphFont">(4)    A fiduciary shall distribute the net income remaining after distributions required by paragraph (3) in the manner described in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-202"><span class="s2072934DefaultParagraphFont">55-13A-202</span></a><span xml:space="preserve" class="s2072934DefaultParagraphFont"> to all other beneficiaries, including a beneficiary who receives a pecuniary amount in trust, even if the beneficiary holds an unqualified power to withdraw assets from the trust or other presently exercisable general power of appointment over the trust.</span></p><p dir="ltr" class="s2072934Normal-000001"><span xml:space="preserve" class="s2072934DefaultParagraphFont">(5)    A fiduciary may not reduce principal or income receipts from property described in paragraph (1) because of a payment described in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-501"><span class="s2072934DefaultParagraphFont">55-13A-501</span></a><span xml:space="preserve" class="s2072934DefaultParagraphFont"> or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-502"><span class="s2072934DefaultParagraphFont">55-13A-502</span></a><span xml:space="preserve" class="s2072934DefaultParagraphFont"> to the extent that the will, the terms of the trust, or applicable law requires the fiduciary to make the payment from assets other than the property or to the extent that the fiduciary recovers or expects to recover the payment from a third party. The net income and principal receipts from the property are determined by including all of the amounts the fiduciary receives or pays with respect to the property, whether those amounts accrued or became due before, on, or after the date of a decedent's death or an income interest's terminating event, and by making a reasonable provision for amounts that the fiduciary believes the estate or terminating income interest may become obligated to pay after the property is distributed.</span></p><p dir="ltr" class="s2072934Normal"><span xml:space="preserve" class="s2072934000003"> </span></p><p dir="ltr" class="s2072934Normal"><span class="s2072934SCL">Source:</span><span xml:space="preserve" class="s2072934SCL-000004"> SL 2007, ch 282, § 6.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072935Normal { 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.s2072935SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072935CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072935Normal-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.s2072935DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072935Normal-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.s2072935Normal-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.s2072935000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072935SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072935SCL-000004 { 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="s2072935Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-202"><span class="s2072935SENU">55-13A-202</span></a><span xml:space="preserve" class="s2072935SENU">. </span><span class="s2072935CL">Distribution to residuary and remainder beneficiaries.</span></p><p dir="ltr" class="s2072935Normal-000000"><span class="s2072935DefaultParagraphFont">(a) Notwithstanding any contrary provision of this chapter, if the trust instrument adopts the provisions of this section by reference, an increase in the value of the following investments owned by a charitable remainder unitrust, of the type authorized in § 664(d)(3) of the Internal Revenue Code (26 U.S.C. § 664), as of January 1, 2009, is distributable as income when it becomes available for distribution:</span></p><p dir="ltr" class="s2072935Normal-000001"><span class="s2072935DefaultParagraphFont">(1)    A zero coupon bond;</span></p><p dir="ltr" class="s2072935Normal-000001"><span class="s2072935DefaultParagraphFont">(2)    An annuity contract before annuitization;</span></p><p dir="ltr" class="s2072935Normal-000001"><span class="s2072935DefaultParagraphFont">(3)    A life insurance contract before the death of the insured;</span></p><p dir="ltr" class="s2072935Normal-000001"><span class="s2072935DefaultParagraphFont">(4)    An interest in a common trust fund (as defined under § 584 of the Internal Revenue Code) (26 U.S.C. § 584);</span></p><p dir="ltr" class="s2072935Normal-000001"><span class="s2072935DefaultParagraphFont">(5)    An interest in a partnership, as defined in § 7701 of the Internal Revenue Code (26 U.S.C. § 7701); or</span></p><p dir="ltr" class="s2072935Normal-000001"><span class="s2072935DefaultParagraphFont">(6)    Any other obligation for the payment of money that is payable at a future time in accordance with a fixed, variable, or discretionary schedule of appreciation in excess of the price at which it was issued.</span></p><p dir="ltr" class="s2072935Normal-000002"><span class="s2072935DefaultParagraphFont">(b) For purposes of this section, the increase in value of an investment described in subsection (a) is available for distribution only if the trustee receives cash on account of the investment.</span></p><p dir="ltr" class="s2072935Normal-000002"><span class="s2072935DefaultParagraphFont">(c) The increase in value of the obligations described in subsection (a) is distributable to the beneficiary who was the income beneficiary at the time of the increase from the first principal cash available or, if none is available, when realized by sale, redemption, or other disposition. If unrealized increase is distributed as income but out of principal, the principal shall be reimbursed from the increase when realized.</span></p><p dir="ltr" class="s2072935Normal"><span xml:space="preserve" class="s2072935000003"> </span></p><p dir="ltr" class="s2072935Normal"><span class="s2072935SCL">Source:</span><span xml:space="preserve" class="s2072935SCL-000004"> SL 2007, ch 282, § 7; SL 2009, ch 252, § 34.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072936Normal { 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.s2072936SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072936CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072936Normal-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.s2072936DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072936Normal-000001 { 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; } p.s2072936Normal-000002 { 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.s2072936000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072936SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072936SCL-000004 { 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="s2072936Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-301"><span class="s2072936SENU">55-13A-301</span></a><span xml:space="preserve" class="s2072936SENU">. </span><span class="s2072936CL">When right to income begins and ends.</span></p><p dir="ltr" class="s2072936Normal-000000"><span class="s2072936DefaultParagraphFont">(a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income interest.</span></p><p dir="ltr" class="s2072936Normal-000001"><span class="s2072936DefaultParagraphFont">(b) An asset becomes subject to a trust:</span></p><p dir="ltr" class="s2072936Normal-000002"><span class="s2072936DefaultParagraphFont">(1)    On the date it is transferred to the trust in the case of an asset that is transferred to a trust during the transferor's life;</span></p><p dir="ltr" class="s2072936Normal-000002"><span class="s2072936DefaultParagraphFont">(2)    On the date of a testator's death in the case of an asset that becomes subject to a trust by reason of a will, even if there is an intervening period of administration of the testator's estate; or</span></p><p dir="ltr" class="s2072936Normal-000002"><span class="s2072936DefaultParagraphFont">(3)    On the date of an individual's death in the case of an asset that is transferred to a fiduciary by a third party because of the individual's death.</span></p><p dir="ltr" class="s2072936Normal-000001"><span class="s2072936DefaultParagraphFont">(c) An asset becomes subject to a successive income interest on the day after the preceding income interest ends, as determined under subsection (d), even if there is an intervening period of administration to wind up the preceding income interest.</span></p><p dir="ltr" class="s2072936Normal-000001"><span class="s2072936DefaultParagraphFont">(d) An income interest ends on the day before an income beneficiary dies or another terminating event occurs, or on the last day of a period during which there is no beneficiary to whom a trustee may distribute income.</span></p><p dir="ltr" class="s2072936Normal"><span xml:space="preserve" class="s2072936000003"> </span></p><p dir="ltr" class="s2072936Normal"><span class="s2072936SCL">Source:</span><span xml:space="preserve" class="s2072936SCL-000004"> SL 2007, ch 282, § 8.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072937Normal { 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.s2072937SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072937CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072937Normal-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.s2072937DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072937Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072937000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072937SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072937SCL-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="s2072937Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-302"><span class="s2072937SENU">55-13A-302</span></a><span xml:space="preserve" class="s2072937SENU">. </span><span class="s2072937CL">Apportionment of receipts and disbursements when decedent dies or income interest begins.</span></p><p dir="ltr" class="s2072937Normal-000000"><span class="s2072937DefaultParagraphFont">(a) A trustee shall allocate an income receipt or disbursement other than one to which § 55-13A-201(1) applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or successive income interest.</span></p><p dir="ltr" class="s2072937Normal-000001"><span class="s2072937DefaultParagraphFont">(b) A trustee shall allocate an income receipt or disbursement to income if its due date occurs on or after the date on which a decedent dies or an income interest begins and it is a periodic due date. An income receipt or disbursement must be treated as accruing from day to day if its due date is not periodic or it has no due date. The portion of the receipt or disbursement accruing before the date on which a decedent dies or an income interest begins must be allocated to principal and the balance must be allocated to income.</span></p><p dir="ltr" class="s2072937Normal-000001"><span xml:space="preserve" class="s2072937DefaultParagraphFont">(c) An item of income or an obligation is due on the date the payer is required to make a payment. If a payment date is not stated, there is no due date for the purposes of this chapter. Distributions to shareholders or other owners from an entity to which § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-401"><span class="s2072937DefaultParagraphFont">55-13A-401</span></a><span xml:space="preserve" class="s2072937DefaultParagraphFont"> applies are deemed to be due on the date fixed by the entity for determining who is entitled to receive the distribution or, if no date is fixed, on the declaration date for the distribution. A due date is periodic for receipts or disbursements that must be paid at regular intervals under a lease or an obligation to pay interest or if an entity customarily makes distributions at regular intervals.</span></p><p dir="ltr" class="s2072937Normal"><span xml:space="preserve" class="s2072937000002"> </span></p><p dir="ltr" class="s2072937Normal"><span class="s2072937SCL">Source:</span><span xml:space="preserve" class="s2072937SCL-000003"> SL 2007, ch 282, § 9.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072938Normal { 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.s2072938SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072938CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072938Normal-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.s2072938DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072938Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072938000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072938SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072938SCL-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="s2072938Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-303"><span class="s2072938SENU">55-13A-303</span></a><span xml:space="preserve" class="s2072938SENU">. </span><span class="s2072938CL">Apportionment when income interest ends.</span></p><p dir="ltr" class="s2072938Normal-000000"><span class="s2072938DefaultParagraphFont">(a) In this section, the term, undistributed income, means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.</span></p><p dir="ltr" class="s2072938Normal-000001"><span class="s2072938DefaultParagraphFont">(b) When a mandatory income interest ends, the trustee shall pay to a mandatory income beneficiary who survives that date, or the estate of a deceased mandatory income beneficiary whose death causes the interest to end, the beneficiary's share of the undistributed income that is not disposed of under the terms of the trust unless the beneficiary has an unqualified power to revoke more than five percent of the trust immediately before the income interest ends. In the latter case, the undistributed income from the portion of the trust that may be revoked must be added to principal.</span></p><p dir="ltr" class="s2072938Normal-000001"><span class="s2072938DefaultParagraphFont">(c) When a trustee's obligation to pay a fixed annuity or a fixed fraction of the value of the trust's assets ends, the trustee shall prorate the final payment if and to the extent required by applicable law to accomplish a purpose of the trust or its settlor relating to income, gift, estate, or other tax requirements.</span></p><p dir="ltr" class="s2072938Normal"><span xml:space="preserve" class="s2072938000002"> </span></p><p dir="ltr" class="s2072938Normal"><span class="s2072938SCL">Source:</span><span xml:space="preserve" class="s2072938SCL-000003"> SL 2007, ch 282, § 10.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072939Normal { 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.s2072939SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072939CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072939Normal-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.s2072939DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072939Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } p.s2072939Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2072939000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072939SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072939SCL-000004 { 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="s2072939Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-401"><span class="s2072939SENU">55-13A-401</span></a><span xml:space="preserve" class="s2072939SENU">. </span><span class="s2072939CL">Character of receipts.</span></p><p dir="ltr" class="s2072939Normal-000000"><span xml:space="preserve" class="s2072939DefaultParagraphFont">(a) In this section, the term, entity, means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-402"><span class="s2072939DefaultParagraphFont">55-13A-402</span></a><span xml:space="preserve" class="s2072939DefaultParagraphFont"> applies, a business or activity to which § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-403"><span class="s2072939DefaultParagraphFont">55-13A-403</span></a><span xml:space="preserve" class="s2072939DefaultParagraphFont"> applies, or an asset-backed security to which § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-415"><span class="s2072939DefaultParagraphFont">55-13A-415</span></a><span xml:space="preserve" class="s2072939DefaultParagraphFont"> applies.</span></p><p dir="ltr" class="s2072939Normal-000001"><span class="s2072939DefaultParagraphFont">(b) Except as otherwise provided in this section, a trustee shall allocate to income money received from an entity.</span></p><p dir="ltr" class="s2072939Normal-000001"><span class="s2072939DefaultParagraphFont">(c) A trustee shall allocate the following receipts from an entity to principal:</span></p><p dir="ltr" class="s2072939Normal-000002"><span class="s2072939DefaultParagraphFont">(1)    Property other than money;</span></p><p dir="ltr" class="s2072939Normal-000002"><span class="s2072939DefaultParagraphFont">(2)    Money received in one distribution or a series of related distributions in exchange for part or all of a trust's interest in the entity;</span></p><p dir="ltr" class="s2072939Normal-000002"><span class="s2072939DefaultParagraphFont">(3)    Money received in total or partial liquidation of the entity; and</span></p><p dir="ltr" class="s2072939Normal-000002"><span class="s2072939DefaultParagraphFont">(4)    Money received from an entity that is a regulated investment company or a real estate investment trust if the money distributed is a capital gain dividend for federal income tax purposes.</span></p><p dir="ltr" class="s2072939Normal-000001"><span class="s2072939DefaultParagraphFont">(d) Money is received in partial liquidation:</span></p><p dir="ltr" class="s2072939Normal-000002"><span class="s2072939DefaultParagraphFont">(1)    To the extent that the entity, at or near the time of a distribution, indicates that it is a distribution in partial liquidation; or</span></p><p dir="ltr" class="s2072939Normal-000002"><span class="s2072939DefaultParagraphFont">(2)    If the total amount of money and property received in a distribution or series of related distributions is greater than twenty percent of the entity's gross assets, as shown by the entity's year-end financial statements immediately preceding the initial receipt.</span></p><p dir="ltr" class="s2072939Normal-000001"><span class="s2072939DefaultParagraphFont">(e) Money is not received in partial liquidation, nor may it be taken into account under subsection (d)(2), to the extent that it does not exceed the amount of income tax that a trustee or beneficiary must pay on taxable income of the entity that distributes the money.</span></p><p dir="ltr" class="s2072939Normal-000001"><span class="s2072939DefaultParagraphFont">(f) A trustee may rely upon a statement made by an entity about the source or character of a distribution if the statement is made at or near the time of distribution by the entity's board of directors or other person or group of persons authorized to exercise powers to pay money or transfer property comparable to those of a corporation's board of directors.</span></p><p dir="ltr" class="s2072939Normal"><span xml:space="preserve" class="s2072939000003"> </span></p><p dir="ltr" class="s2072939Normal"><span class="s2072939SCL">Source:</span><span xml:space="preserve" class="s2072939SCL-000004"> SL 2007, ch 282, § 11.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072940Normal { 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.s2072940SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072940CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072940Normal-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.s2072940DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072940000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072940SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072940SCL-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="s2072940Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-402"><span class="s2072940SENU">55-13A-402</span></a><span xml:space="preserve" class="s2072940SENU">. </span><span class="s2072940CL">Distribution from trust or estate.</span></p><p dir="ltr" class="s2072940Normal-000000"><span xml:space="preserve" class="s2072940DefaultParagraphFont">A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-401"><span class="s2072940DefaultParagraphFont">55-13A-401</span></a><span xml:space="preserve" class="s2072940DefaultParagraphFont"> or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-415"><span class="s2072940DefaultParagraphFont">55-13A-415</span></a><span xml:space="preserve" class="s2072940DefaultParagraphFont"> applies to a receipt from the trust.</span></p><p dir="ltr" class="s2072940Normal"><span xml:space="preserve" class="s2072940000001"> </span></p><p dir="ltr" class="s2072940Normal"><span class="s2072940SCL">Source:</span><span xml:space="preserve" class="s2072940SCL-000002"> SL 2007, ch 282, § 12.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072941Normal { 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.s2072941SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072941CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072941Normal-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.s2072941DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072941Normal-000001 { 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; } p.s2072941Normal-000002 { 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.s2072941000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072941SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072941SCL-000004 { 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="s2072941Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-403"><span class="s2072941SENU">55-13A-403</span></a><span xml:space="preserve" class="s2072941SENU">. </span><span class="s2072941CL">Business and other activities conducted by trustee.</span></p><p dir="ltr" class="s2072941Normal-000000"><span class="s2072941DefaultParagraphFont">(a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain separate accounting records for its transactions, whether or not its assets are segregated from other trust assets.</span></p><p dir="ltr" class="s2072941Normal-000001"><span class="s2072941DefaultParagraphFont">(b) A trustee who accounts separately for a business or other activity may determine the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets, and other reasonably foreseeable needs of the business or activity, and the extent to which the remaining net cash receipts are accounted for as principal or income in the trust's general accounting records. If a trustee sells assets of the business or other activity, other than in the ordinary course of the business or activity, the trustee shall account for the net amount received as principal in the trust's general accounting records to the extent the trustee determines that the amount received is no longer required in the conduct of the business.</span></p><p dir="ltr" class="s2072941Normal-000001"><span class="s2072941DefaultParagraphFont">(c) Activities for which a trustee may maintain separate accounting records include:</span></p><p dir="ltr" class="s2072941Normal-000002"><span class="s2072941DefaultParagraphFont">(1)    Retail, manufacturing, service, and other traditional business activities;</span></p><p dir="ltr" class="s2072941Normal-000002"><span class="s2072941DefaultParagraphFont">(2)    Farming;</span></p><p dir="ltr" class="s2072941Normal-000002"><span class="s2072941DefaultParagraphFont">(3)    Raising and selling livestock and other animals;</span></p><p dir="ltr" class="s2072941Normal-000002"><span class="s2072941DefaultParagraphFont">(4)    Management of rental properties;</span></p><p dir="ltr" class="s2072941Normal-000002"><span class="s2072941DefaultParagraphFont">(5)    Extraction of minerals and other natural resources;</span></p><p dir="ltr" class="s2072941Normal-000002"><span class="s2072941DefaultParagraphFont">(6)    Timber operations; and</span></p><p dir="ltr" class="s2072941Normal-000002"><span xml:space="preserve" class="s2072941DefaultParagraphFont">(7)    Activities to which § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-414"><span class="s2072941DefaultParagraphFont">55-13A-414</span></a><span xml:space="preserve" class="s2072941DefaultParagraphFont"> applies.</span></p><p dir="ltr" class="s2072941Normal"><span xml:space="preserve" class="s2072941000003"> </span></p><p dir="ltr" class="s2072941Normal"><span class="s2072941SCL">Source:</span><span xml:space="preserve" class="s2072941SCL-000004"> SL 2007, ch 282, § 13.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072942Normal { 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.s2072942SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072942CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072942Normal-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.s2072942DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072942Normal-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.s2072942000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072942SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072942SCL-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="s2072942Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-404"><span class="s2072942SENU">55-13A-404</span></a><span xml:space="preserve" class="s2072942SENU">. </span><span class="s2072942CL">Principal receipts.</span></p><p dir="ltr" class="s2072942Normal-000000"><span class="s2072942DefaultParagraphFont">A trustee shall allocate to principal:</span></p><p dir="ltr" class="s2072942Normal-000001"><span class="s2072942DefaultParagraphFont">(1)    To the extent not allocated to income under this chapter, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or its trustee as beneficiary;</span></p><p dir="ltr" class="s2072942Normal-000001"><span class="s2072942DefaultParagraphFont">(2)    Money or other property received from the sale, exchange, liquidation, or change in form of a principal asset, including realized profit, subject to this article;</span></p><p dir="ltr" class="s2072942Normal-000001"><span class="s2072942DefaultParagraphFont">(3)    Amounts recovered from third parties to reimburse the trust because of disbursements described in § 55-13A-502(a)(7) or for other reasons to the extent not based on the loss of income;</span></p><p dir="ltr" class="s2072942Normal-000001"><span class="s2072942DefaultParagraphFont">(4)    Proceeds of property taken by eminent domain, but a separate award made for the loss of income with respect to an accounting period during which a current income beneficiary had a mandatory income interest is income;</span></p><p dir="ltr" class="s2072942Normal-000001"><span class="s2072942DefaultParagraphFont">(5)    Net income received in an accounting period during which there is no beneficiary to whom a trustee may or must distribute income; and</span></p><p dir="ltr" class="s2072942Normal-000001"><span xml:space="preserve" class="s2072942DefaultParagraphFont">(6)    Other receipts as provided in §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-408"><span class="s2072942DefaultParagraphFont">55-13A-408</span></a><span xml:space="preserve" class="s2072942DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-415"><span class="s2072942DefaultParagraphFont">55-13A-415</span></a><span class="s2072942DefaultParagraphFont">, inclusive.</span></p><p dir="ltr" class="s2072942Normal"><span xml:space="preserve" class="s2072942000002"> </span></p><p dir="ltr" class="s2072942Normal"><span class="s2072942SCL">Source:</span><span xml:space="preserve" class="s2072942SCL-000003"> SL 2007, ch 282, § 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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072943Normal { 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.s2072943SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072943CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072943Normal-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.s2072943DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072943000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072943SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072943SCL-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="s2072943Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-405"><span class="s2072943SENU">55-13A-405</span></a><span xml:space="preserve" class="s2072943SENU">. </span><span class="s2072943CL">Rental property.</span></p><p dir="ltr" class="s2072943Normal-000000"><span class="s2072943DefaultParagraphFont">To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a refundable deposit, including a security deposit or a deposit that is to be applied as rent for future periods, must be added to principal and held subject to the terms of the lease and is not available for distribution to a beneficiary until the trustee's contractual obligations have been satisfied with respect to that amount.</span></p><p dir="ltr" class="s2072943Normal"><span xml:space="preserve" class="s2072943000001"> </span></p><p dir="ltr" class="s2072943Normal"><span class="s2072943SCL">Source:</span><span xml:space="preserve" class="s2072943SCL-000002"> SL 2007, ch 282, § 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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072944Normal { 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.s2072944SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072944CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072944Normal-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.s2072944DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072944Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072944000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072944SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072944SCL-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="s2072944Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-406"><span class="s2072944SENU">55-13A-406</span></a><span xml:space="preserve" class="s2072944SENU">. </span><span class="s2072944CL">Obligation to pay money.</span></p><p dir="ltr" class="s2072944Normal-000000"><span class="s2072944DefaultParagraphFont">(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of premium.</span></p><p dir="ltr" class="s2072944Normal-000001"><span class="s2072944DefaultParagraphFont">(b) A trustee shall allocate to principal an amount received from the sale, redemption, or other disposition of an obligation to pay money to the trustee more than one year after it is purchased or acquired by the trustee, including an obligation whose purchase price or value when it is acquired is less than its value at maturity. If the obligation matures within one year after it is purchased or acquired by the trustee, an amount received in excess of its purchase price or its value when acquired by the trust must be allocated to income.</span></p><p dir="ltr" class="s2072944Normal-000001"><span xml:space="preserve" class="s2072944DefaultParagraphFont">(c) This section does not apply to an obligation to which § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-409"><span class="s2072944DefaultParagraphFont">55-13A-409</span></a><span xml:space="preserve" class="s2072944DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-410"><span class="s2072944DefaultParagraphFont">55-13A-410</span></a><span xml:space="preserve" class="s2072944DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-411"><span class="s2072944DefaultParagraphFont">55-13A-411</span></a><span xml:space="preserve" class="s2072944DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-412"><span class="s2072944DefaultParagraphFont">55-13A-412</span></a><span xml:space="preserve" class="s2072944DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-414"><span class="s2072944DefaultParagraphFont">55-13A-414</span></a><span xml:space="preserve" class="s2072944DefaultParagraphFont">, or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-415"><span class="s2072944DefaultParagraphFont">55-13A-415</span></a><span xml:space="preserve" class="s2072944DefaultParagraphFont"> applies.</span></p><p dir="ltr" class="s2072944Normal"><span xml:space="preserve" class="s2072944000002"> </span></p><p dir="ltr" class="s2072944Normal"><span class="s2072944SCL">Source:</span><span xml:space="preserve" class="s2072944SCL-000003"> SL 2007, ch 282, § 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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072945Normal { 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.s2072945SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072945CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072945Normal-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.s2072945DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072945Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072945000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072945SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072945SCL-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="s2072945Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-407"><span class="s2072945SENU">55-13A-407</span></a><span xml:space="preserve" class="s2072945SENU">. </span><span class="s2072945CL">Insurance policies and similar contracts.</span></p><p dir="ltr" class="s2072945Normal-000000"><span class="s2072945DefaultParagraphFont">(a) Except as otherwise provided in subsection (b), a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for damage to, destruction of, or loss of title to a trust asset. The trustee shall allocate dividends on an insurance policy to income if the premiums on the policy are paid from income, and to principal if the premiums are paid from principal.</span></p><p dir="ltr" class="s2072945Normal-000001"><span xml:space="preserve" class="s2072945DefaultParagraphFont">(b) A trustee shall allocate to income proceeds of a contract that insures the trustee against loss of occupancy or other use by an income beneficiary, loss of income, or, subject to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-403"><span class="s2072945DefaultParagraphFont">55-13A-403</span></a><span class="s2072945DefaultParagraphFont">, loss of profits from a business.</span></p><p dir="ltr" class="s2072945Normal-000001"><span xml:space="preserve" class="s2072945DefaultParagraphFont">(c) This section does not apply to a contract to which § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-409"><span class="s2072945DefaultParagraphFont">55-13A-409</span></a><span xml:space="preserve" class="s2072945DefaultParagraphFont"> applies.</span></p><p dir="ltr" class="s2072945Normal"><span xml:space="preserve" class="s2072945000002"> </span></p><p dir="ltr" class="s2072945Normal"><span class="s2072945SCL">Source:</span><span xml:space="preserve" class="s2072945SCL-000003"> SL 2007, ch 282, § 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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072946Normal { 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.s2072946SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072946CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072946Normal-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.s2072946DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072946Normal-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.s2072946000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072946SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072946SCL-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="s2072946Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-408"><span class="s2072946SENU">55-13A-408</span></a><span xml:space="preserve" class="s2072946SENU">. </span><span class="s2072946CL">Insubstantial allocations not required.</span></p><p dir="ltr" class="s2072946Normal-000000"><span xml:space="preserve" class="s2072946DefaultParagraphFont">If a trustee determines that an allocation between principal and income required by § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-409"><span class="s2072946DefaultParagraphFont">55-13A-409</span></a><span xml:space="preserve" class="s2072946DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-410"><span class="s2072946DefaultParagraphFont">55-13A-410</span></a><span xml:space="preserve" class="s2072946DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-411"><span class="s2072946DefaultParagraphFont">55-13A-411</span></a><span xml:space="preserve" class="s2072946DefaultParagraphFont">, </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-412"><span class="s2072946DefaultParagraphFont">55-13A-412</span></a><span xml:space="preserve" class="s2072946DefaultParagraphFont">, or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-415"><span class="s2072946DefaultParagraphFont">55-13A-415</span></a><span xml:space="preserve" class="s2072946DefaultParagraphFont"> is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in § 55-13A-104(c) applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in § 55-13A-104(d) and may be released for the reasons and in the manner described in § 55-13A-104(e). An allocation is presumed to be insubstantial if:</span></p><p dir="ltr" class="s2072946Normal-000001"><span class="s2072946DefaultParagraphFont">(1)    The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten percent; or</span></p><p dir="ltr" class="s2072946Normal-000001"><span class="s2072946DefaultParagraphFont">(2)    The value of the asset producing the receipt for which the allocation would be made is less than ten percent of the total value of the trust's assets at the beginning of the accounting period.</span></p><p dir="ltr" class="s2072946Normal"><span xml:space="preserve" class="s2072946000002"> </span></p><p dir="ltr" class="s2072946Normal"><span class="s2072946SCL">Source:</span><span xml:space="preserve" class="s2072946SCL-000003"> SL 2007, ch 282, § 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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072947Normal { 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.s2072947SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072947CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072947Normal-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.s2072947DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072947Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } p.s2072947Normal-000002 { margin-top: 0; margin-bottom: 0; margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } p.s2072947Normal-000003 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2072947000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072947SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072947SCL-000005 { 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="s2072947Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-409"><span class="s2072947SENU">55-13A-409</span></a><span xml:space="preserve" class="s2072947SENU">. </span><span class="s2072947CL">Deferred compensation, annuities, and similar payments.</span></p><p dir="ltr" class="s2072947Normal-000000"><span xml:space="preserve" class="s2072947DefaultParagraphFont"> (a) For the purposes of this section, the term, payment, means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payer in exchange for future payments. The term includes a payment made in money or property from the payer's general assets or from a separate fund created by the payer, including a private or commercial annuity, an individual retirement account, and a pension, profit-sharing, stock-bonus, or stock-ownership plan.</span></p><p dir="ltr" class="s2072947Normal-000001"><span class="s2072947DefaultParagraphFont">(b) To the extent that a payment is characterized as interest or a dividend or a payment made in lieu of interest or a dividend, a trustee shall allocate it to income. The trustee shall allocate to principal the balance of the payment and any other payment received in the same accounting period that is not characterized as interest, a dividend, or an equivalent payment.</span></p><p dir="ltr" class="s2072947Normal-000001"><span class="s2072947DefaultParagraphFont">(c)(1) For purposes of this subsection, plan income means any of the following:</span></p><p dir="ltr" class="s2072947Normal-000002"><span class="s2072947DefaultParagraphFont">(A)    With respect to payments received from a plan that maintains separate accounts or funds for its participants or account holders, such as defined contribution retirement plans, individual retirement accounts, Roth individual retirement accounts, and some types of deferred compensation plans, either the amount of the plan account or fund held for the benefit of the trust that, if the plan account or fund were a trust, would be allocated to income pursuant to subsections (b) and (d) for that accounting period, or four percent of the value of the plan account or fund on the first day of the accounting period. The trustee shall, in his or her discretion, choose the method of determining plan income pursuant to this paragraph, and may change the method of determining plan income pursuant to this paragraph for any subsequent accounting period;</span></p><p dir="ltr" class="s2072947Normal-000002"><span class="s2072947DefaultParagraphFont">(B)    With respect to payments received from a plan that does not maintain separate accounts or funds for its participants or account holders, such as defined benefit retirement plans and some types of deferred compensation plans, four percent of the total present value of the trust's interest in the plan as of the first day of the accounting period, based on reasonable actuarial assumptions as determined by the trustee.</span></p><p dir="ltr" class="s2072947Normal-000003"><span class="s2072947DefaultParagraphFont">(2)    For each accounting period of a trust in which the trust receives a payment but no part of any payment is allocated to income pursuant to subsection (b), the trustee shall allocate to income that portion of the aggregate value of all payments received by the trustee in that accounting period that is equal to the amount of plan income that is attributable to the trust's interest in the plan from which payment is received for that accounting period. The trustee shall allocate the balance of any payments to principal.</span></p><p dir="ltr" class="s2072947Normal-000001"><span class="s2072947DefaultParagraphFont">(d) If, to obtain an estate or gift tax marital deduction for an interest in a trust, a trustee must allocate more of a payment to income than provided for by this section, the trustee shall allocate to income the additional amount necessary to obtain the marital deduction.</span></p><p dir="ltr" class="s2072947Normal-000001"><span xml:space="preserve" class="s2072947DefaultParagraphFont">(e) This section does not apply to payments to which § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-410"><span class="s2072947DefaultParagraphFont">55-13A-410</span></a><span xml:space="preserve" class="s2072947DefaultParagraphFont"> applies.</span></p><p dir="ltr" class="s2072947Normal"><span xml:space="preserve" class="s2072947000004"> </span></p><p dir="ltr" class="s2072947Normal"><span class="s2072947SCL">Source:</span><span xml:space="preserve" class="s2072947SCL-000005"> SL 2007, ch 282, § 19; SL 2009, ch 252, § 35; SL 2010, ch 232, § 5.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072948Normal { 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.s2072948SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072948CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072948Normal-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.s2072948DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072948Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072948000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072948SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072948SCL-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="s2072948Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-410"><span class="s2072948SENU">55-13A-410</span></a><span xml:space="preserve" class="s2072948SENU">. </span><span class="s2072948CL">Liquidating asset.</span></p><p dir="ltr" class="s2072948Normal-000000"><span xml:space="preserve" class="s2072948DefaultParagraphFont">(a) In this section, the term, liquidating asset, means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-409"><span class="s2072948DefaultParagraphFont">55-13A-409</span></a><span xml:space="preserve" class="s2072948DefaultParagraphFont">, resources subject to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-411"><span class="s2072948DefaultParagraphFont">55-13A-411</span></a><span xml:space="preserve" class="s2072948DefaultParagraphFont">, timber subject to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-412"><span class="s2072948DefaultParagraphFont">55-13A-412</span></a><span xml:space="preserve" class="s2072948DefaultParagraphFont">, an activity subject to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-414"><span class="s2072948DefaultParagraphFont">55-13A-414</span></a><span xml:space="preserve" class="s2072948DefaultParagraphFont">, an asset subject to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-415"><span class="s2072948DefaultParagraphFont">55-13A-415</span></a><span xml:space="preserve" class="s2072948DefaultParagraphFont">, or any asset for which the trustee establishes a reserve for depreciation under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-503"><span class="s2072948DefaultParagraphFont">55-13A-503</span></a><span class="s2072948DefaultParagraphFont">.</span></p><p dir="ltr" class="s2072948Normal-000001"><span class="s2072948DefaultParagraphFont">(b) A trustee shall allocate to income ten percent of the receipts from a liquidating asset and the balance to principal.</span></p><p dir="ltr" class="s2072948Normal"><span xml:space="preserve" class="s2072948000002"> </span></p><p dir="ltr" class="s2072948Normal"><span class="s2072948SCL">Source:</span><span xml:space="preserve" class="s2072948SCL-000003"> SL 2007, ch 282, § 20.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072949Normal { 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.s2072949SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072949CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072949Normal-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.s2072949DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072949Normal-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.s2072949Normal-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.s2072949000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072949SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072949SCL-000004 { 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="s2072949Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-411"><span class="s2072949SENU">55-13A-411</span></a><span xml:space="preserve" class="s2072949SENU">. </span><span class="s2072949CL">Minerals, water, and other natural resources.</span></p><p dir="ltr" class="s2072949Normal-000000"><span class="s2072949DefaultParagraphFont">(a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows:</span></p><p dir="ltr" class="s2072949Normal-000001"><span class="s2072949DefaultParagraphFont">(1)    If received as nominal delay rental or nominal annual rent on a lease, a receipt must be allocated to income;</span></p><p dir="ltr" class="s2072949Normal-000001"><span class="s2072949DefaultParagraphFont">(2)    If received from a production payment, a receipt must be allocated to income if and to the extent that the agreement creating the production payment provides a factor for interest or its equivalent. The balance must be allocated to principal;</span></p><p dir="ltr" class="s2072949Normal-000001"><span class="s2072949DefaultParagraphFont">(3)    If an amount received as a royalty, shut-in-well payment, take-or-pay payment, bonus, or delay rental is more than nominal, ninety percent must be allocated to principal and the balance to income;</span></p><p dir="ltr" class="s2072949Normal-000001"><span class="s2072949DefaultParagraphFont">(4)    If an amount is received from a working interest or any other interest not provided for in paragraph (1), (2), or (3), ninety percent of the net amount received must be allocated to principal and the balance to income.</span></p><p dir="ltr" class="s2072949Normal-000002"><span class="s2072949DefaultParagraphFont">(b) An amount received on account of an interest in water that is renewable must be allocated to income. If the water is not renewable, ninety percent of the amount must be allocated to principal and the balance to income.</span></p><p dir="ltr" class="s2072949Normal-000002"><span class="s2072949DefaultParagraphFont">(c) This chapter applies whether or not a decedent or donor was extracting minerals, water, or other natural resources before the interest became subject to the trust.</span></p><p dir="ltr" class="s2072949Normal-000002"><span class="s2072949DefaultParagraphFont">(d) If a trust owns an interest in minerals, water, or other natural resources on July 1, 2005, the trustee may allocate receipts from the interest as provided in this chapter or in the manner used by the trustee before July 1, 2005. If the trust acquires an interest in minerals, water, or other natural resources after July 1, 2005, the trustee shall allocate receipts from the interest as provided in this chapter.</span></p><p dir="ltr" class="s2072949Normal"><span xml:space="preserve" class="s2072949000003"> </span></p><p dir="ltr" class="s2072949Normal"><span class="s2072949SCL">Source:</span><span xml:space="preserve" class="s2072949SCL-000004"> SL 2007, ch 282, § 21.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072950Normal { 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.s2072950SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072950CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072950Normal-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.s2072950DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072950Normal-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.s2072950Normal-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.s2072950000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072950SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072950SCL-000004 { 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="s2072950Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-412"><span class="s2072950SENU">55-13A-412</span></a><span xml:space="preserve" class="s2072950SENU">. </span><span class="s2072950CL">Timber.</span></p><p dir="ltr" class="s2072950Normal-000000"><span class="s2072950DefaultParagraphFont">(a) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts:</span></p><p dir="ltr" class="s2072950Normal-000001"><span class="s2072950DefaultParagraphFont">(1)    To income to the extent that the amount of timber removed from the land does not exceed the rate of growth of the timber during the accounting periods in which a beneficiary has a mandatory income interest;</span></p><p dir="ltr" class="s2072950Normal-000001"><span class="s2072950DefaultParagraphFont">(2)    To principal to the extent that the amount of timber removed from the land exceeds the rate of growth of the timber or the net receipts are from the sale of standing timber;</span></p><p dir="ltr" class="s2072950Normal-000001"><span class="s2072950DefaultParagraphFont">(3)    To or between income and principal if the net receipts are from the lease of timberland or from a contract to cut timber from land owned by a trust, by determining the amount of timber removed from the land under the lease or contract and applying the rules in paragraphs (1) and (2); or</span></p><p dir="ltr" class="s2072950Normal-000001"><span class="s2072950DefaultParagraphFont">(4)    To principal to the extent that advance payments, bonuses, and other payments are not allocated pursuant to paragraph (1), (2), or (3).</span></p><p dir="ltr" class="s2072950Normal-000002"><span class="s2072950DefaultParagraphFont">(b) In determining net receipts to be allocated pursuant to subsection (a), a trustee shall deduct and transfer to principal a reasonable amount for depletion.</span></p><p dir="ltr" class="s2072950Normal-000002"><span class="s2072950DefaultParagraphFont">(c) This chapter applies whether or not a decedent or transferor was harvesting timber from the property before it became subject to the trust.</span></p><p dir="ltr" class="s2072950Normal-000002"><span class="s2072950DefaultParagraphFont">(d) If a trust owns an interest in timberland on July 1, 2005, the trustee may allocate net receipts from the sale of timber and related products as provided in this chapter or in the manner used by the trustee before July 1, 2005. If the trust acquires an interest in timberland after July 1, 2005, the trustee shall allocate net receipts from the sale of timber and related products as provided in this chapter.</span></p><p dir="ltr" class="s2072950Normal"><span xml:space="preserve" class="s2072950000003"> </span></p><p dir="ltr" class="s2072950Normal"><span class="s2072950SCL">Source:</span><span xml:space="preserve" class="s2072950SCL-000004"> SL 2007, ch 282, § 22.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072951Normal { 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.s2072951SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072951CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072951Normal-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.s2072951DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072951Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072951000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072951SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072951SCL-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="s2072951Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-413"><span class="s2072951SENU">55-13A-413</span></a><span xml:space="preserve" class="s2072951SENU">. </span><span class="s2072951CL">Property not productive of income.</span></p><p dir="ltr" class="s2072951Normal-000000"><span xml:space="preserve" class="s2072951DefaultParagraphFont">(a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-104"><span class="s2072951DefaultParagraphFont">55-13A-104</span></a><span xml:space="preserve" class="s2072951DefaultParagraphFont"> and distributes to the spouse from principal pursuant to the terms of the trust are insufficient to provide the spouse with the beneficial enjoyment required to obtain the marital deduction, the spouse may require the trustee to make property productive of income, convert property within a reasonable time, or exercise the power conferred by § 55-13A-104(a). The trustee may decide which action or combination of actions to take.</span></p><p dir="ltr" class="s2072951Normal-000001"><span class="s2072951DefaultParagraphFont">(b) In cases not governed by subsection (a), proceeds from the sale or other disposition of an asset are principal without regard to the amount of income the asset produces during any accounting period.</span></p><p dir="ltr" class="s2072951Normal"><span xml:space="preserve" class="s2072951000002"> </span></p><p dir="ltr" class="s2072951Normal"><span class="s2072951SCL">Source:</span><span xml:space="preserve" class="s2072951SCL-000003"> SL 2007, ch 282, § 23.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072952Normal { 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.s2072952SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072952CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072952Normal-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.s2072952DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072952Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072952000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072952SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072952SCL-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="s2072952Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-414"><span class="s2072952SENU">55-13A-414</span></a><span xml:space="preserve" class="s2072952SENU">. </span><span class="s2072952CL">Derivatives and options.</span></p><p dir="ltr" class="s2072952Normal-000000"><span class="s2072952DefaultParagraphFont">(a) In this section, the term, derivative, means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, or changes in a rate, an index of prices or rates, or other market indicator for an asset or a group of assets.</span></p><p dir="ltr" class="s2072952Normal-000001"><span xml:space="preserve" class="s2072952DefaultParagraphFont">(b) To the extent that a trustee does not account under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-403"><span class="s2072952DefaultParagraphFont">55-13A-403</span></a><span xml:space="preserve" class="s2072952DefaultParagraphFont"> for transactions in derivatives, the trustee shall allocate to principal receipts from and disbursements made in connection with those transactions.</span></p><p dir="ltr" class="s2072952Normal-000001"><span class="s2072952DefaultParagraphFont">(c) If a trustee grants an option to buy property from the trust, whether or not the trust owns the property when the option is granted, grants an option that permits another person to sell property to the trust, or acquires an option to buy property for the trust or an option to sell an asset owned by the trust, and the trustee or other owner of the asset is required to deliver the asset if the option is exercised, an amount received for granting the option must be allocated to principal. An amount paid to acquire the option must be paid from principal. A gain or loss realized upon the exercise of an option, including an option granted to a settlor of the trust for services rendered, must be allocated to principal.</span></p><p dir="ltr" class="s2072952Normal"><span xml:space="preserve" class="s2072952000002"> </span></p><p dir="ltr" class="s2072952Normal"><span class="s2072952SCL">Source:</span><span xml:space="preserve" class="s2072952SCL-000003"> SL 2007, ch 282, § 24.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072953Normal { 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.s2072953SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072953CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072953Normal-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.s2072953DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072953Normal-000001 { margin-top: 0; margin-bottom: 0; text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2072953000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072953SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072953SCL-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="s2072953Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-415"><span class="s2072953SENU">55-13A-415</span></a><span xml:space="preserve" class="s2072953SENU">. </span><span class="s2072953CL">Asset-backed securities.</span></p><p dir="ltr" class="s2072953Normal-000000"><span xml:space="preserve" class="s2072953DefaultParagraphFont">(a) In this section, the term, asset- backed security, means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to receive from the collateral financial assets only the interest or other current return or only the proceeds other than interest or current return. The term does not include an asset to which § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-401"><span class="s2072953DefaultParagraphFont">55-13A-401</span></a><span xml:space="preserve" class="s2072953DefaultParagraphFont"> or </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-409"><span class="s2072953DefaultParagraphFont">55-13A-409</span></a><span xml:space="preserve" class="s2072953DefaultParagraphFont"> applies.</span></p><p dir="ltr" class="s2072953Normal-000001"><span class="s2072953DefaultParagraphFont">(b) If a trust receives a payment from interest or other current return and from other proceeds of the collateral financial assets, the trustee shall allocate to income the portion of the payment which the payer identifies as being from interest or other current return and shall allocate the balance of the payment to principal.</span></p><p dir="ltr" class="s2072953Normal-000001"><span class="s2072953DefaultParagraphFont">(c) If a trust receives one or more payments in exchange for the trust's entire interest in an asset-backed security in one accounting period, the trustee shall allocate the payments to principal. If a payment is one of a series of payments that will result in the liquidation of the trust's interest in the security over more than one accounting period, the trustee shall allocate ten percent of the payment to income and the balance to principal.</span></p><p dir="ltr" class="s2072953Normal"><span xml:space="preserve" class="s2072953000002"> </span></p><p dir="ltr" class="s2072953Normal"><span class="s2072953SCL">Source:</span><span xml:space="preserve" class="s2072953SCL-000003"> SL 2007, ch 282, § 25.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072954Normal { 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.s2072954SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072954CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072954Normal-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.s2072954DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072954Normal-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.s2072954000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072954SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072954SCL-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="s2072954Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-501"><span class="s2072954SENU">55-13A-501</span></a><span xml:space="preserve" class="s2072954SENU">. </span><span class="s2072954CL">Disbursements from income.</span></p><p dir="ltr" class="s2072954Normal-000000"><span class="s2072954DefaultParagraphFont">A trustee shall make the following disbursements from income to the extent that they are not disbursements to which § 55-13A-201(2)(B) or (C) applies:</span></p><p dir="ltr" class="s2072954Normal-000001"><span class="s2072954DefaultParagraphFont">(1)    One-half of the regular compensation of the trustee and of any person providing investment advisory or custodial services to the trustee;</span></p><p dir="ltr" class="s2072954Normal-000001"><span class="s2072954DefaultParagraphFont">(2)    One-half of all expenses for accountings, judicial proceedings, or other matters that involve both the income and remainder interests;</span></p><p dir="ltr" class="s2072954Normal-000001"><span class="s2072954DefaultParagraphFont">(3)    All of the other ordinary expenses incurred in connection with the administration, management, or preservation of trust property and the distribution of income, including interest, ordinary repairs, regularly recurring taxes assessed against principal, and expenses of a proceeding or other matter that concerns primarily the income interest; and</span></p><p dir="ltr" class="s2072954Normal-000001"><span class="s2072954DefaultParagraphFont">(4)    Recurring premiums on insurance covering the loss of a principal asset or the loss of income from or use of the asset.</span></p><p dir="ltr" class="s2072954Normal"><span xml:space="preserve" class="s2072954000002"> </span></p><p dir="ltr" class="s2072954Normal"><span class="s2072954SCL">Source:</span><span xml:space="preserve" class="s2072954SCL-000003"> SL 2007, ch 282, § 26.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072955Normal { 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.s2072955SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072955CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072955Normal-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.s2072955DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072955Normal-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.s2072955Normal-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.s2072955000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072955SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072955SCL-000004 { 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="s2072955Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-502"><span class="s2072955SENU">55-13A-502</span></a><span xml:space="preserve" class="s2072955SENU">. </span><span class="s2072955CL">Disbursements from principal.</span></p><p dir="ltr" class="s2072955Normal-000000"><span class="s2072955DefaultParagraphFont">(a) A trustee shall make the following disbursements from principal:</span></p><p dir="ltr" class="s2072955Normal-000001"><span class="s2072955DefaultParagraphFont">(1)    The remaining one-half of the disbursements described in § 55-13A-501(1) and (2);</span></p><p dir="ltr" class="s2072955Normal-000001"><span class="s2072955DefaultParagraphFont">(2)    All of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termination, and disbursements made to prepare property for sale;</span></p><p dir="ltr" class="s2072955Normal-000001"><span class="s2072955DefaultParagraphFont">(3)    Payments on the principal of a trust debt;</span></p><p dir="ltr" class="s2072955Normal-000001"><span class="s2072955DefaultParagraphFont">(4)    Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;</span></p><p dir="ltr" class="s2072955Normal-000001"><span class="s2072955DefaultParagraphFont">(5)    Premiums paid on a policy of insurance not described in § 55-13A-501(4) of which the trust is the owner and beneficiary;</span></p><p dir="ltr" class="s2072955Normal-000001"><span class="s2072955DefaultParagraphFont">(6)    Estate, inheritance, and other transfer taxes, including penalties, apportioned to the trust; and</span></p><p dir="ltr" class="s2072955Normal-000001"><span class="s2072955DefaultParagraphFont">(7)    Disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future releases of substances, collecting amounts from persons liable or potentially liable for the costs of those activities, penalties imposed under environmental laws or regulations and other payments made to comply with those laws or regulations, statutory or common law claims by third parties, and defending claims based on environmental matters.</span></p><p dir="ltr" class="s2072955Normal-000002"><span class="s2072955DefaultParagraphFont">(b) If a principal asset is encumbered with an obligation that requires income from that asset to be paid directly to the creditor, the trustee shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.</span></p><p dir="ltr" class="s2072955Normal"><span xml:space="preserve" class="s2072955000003"> </span></p><p dir="ltr" class="s2072955Normal"><span class="s2072955SCL">Source:</span><span xml:space="preserve" class="s2072955SCL-000004"> SL 2007, ch 282, § 27.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072956Normal { 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.s2072956SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072956CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072956Normal-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.s2072956DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072956Normal-000001 { 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; } p.s2072956Normal-000002 { 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.s2072956000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072956SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072956SCL-000004 { 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="s2072956Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-503"><span class="s2072956SENU">55-13A-503</span></a><span xml:space="preserve" class="s2072956SENU">. </span><span class="s2072956CL">Transfers from income to principal for depreciation.</span></p><p dir="ltr" class="s2072956Normal-000000"><span class="s2072956DefaultParagraphFont">(a) In this section, the term, depreciation, means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year.</span></p><p dir="ltr" class="s2072956Normal-000001"><span class="s2072956DefaultParagraphFont">(b) A trustee may transfer to principal a reasonable amount of the net cash receipts from a principal asset that is subject to depreciation, but may not transfer any amount for depreciation:</span></p><p dir="ltr" class="s2072956Normal-000002"><span class="s2072956DefaultParagraphFont">(1)    Of that portion of real property used or available for use by a beneficiary as a residence or of tangible personal property held or made available for the personal use or enjoyment of a beneficiary;</span></p><p dir="ltr" class="s2072956Normal-000002"><span class="s2072956DefaultParagraphFont">(2)    During the administration of a decedent's estate; or</span></p><p dir="ltr" class="s2072956Normal-000002"><span xml:space="preserve" class="s2072956DefaultParagraphFont">(3)    Under this section if the trustee is accounting under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-403"><span class="s2072956DefaultParagraphFont">55-13A-403</span></a><span xml:space="preserve" class="s2072956DefaultParagraphFont"> for the business or activity in which the asset is used.</span></p><p dir="ltr" class="s2072956Normal-000001"><span class="s2072956DefaultParagraphFont">(c) An amount transferred to principal need not be held as a separate fund.</span></p><p dir="ltr" class="s2072956Normal"><span xml:space="preserve" class="s2072956000003"> </span></p><p dir="ltr" class="s2072956Normal"><span class="s2072956SCL">Source:</span><span xml:space="preserve" class="s2072956SCL-000004"> SL 2007, ch 282, § 28.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072957Normal { 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.s2072957SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072957CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072957Normal-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.s2072957DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072957Normal-000001 { 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; } p.s2072957Normal-000002 { 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.s2072957000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072957SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072957SCL-000004 { 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="s2072957Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-504"><span class="s2072957SENU">55-13A-504</span></a><span xml:space="preserve" class="s2072957SENU">. </span><span class="s2072957CL">Transfers from income to reimburse principal.</span></p><p dir="ltr" class="s2072957Normal-000000"><span class="s2072957DefaultParagraphFont">(a) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements.</span></p><p dir="ltr" class="s2072957Normal-000001"><span class="s2072957DefaultParagraphFont">(b) Principal disbursements to which subsection (a) applies include the following, but only to the extent that the trustee has not been and does not expect to be reimbursed by a third party:</span></p><p dir="ltr" class="s2072957Normal-000002"><span class="s2072957DefaultParagraphFont">(1)    An amount chargeable to income but paid from principal because it is unusually large, including extraordinary repairs;</span></p><p dir="ltr" class="s2072957Normal-000002"><span class="s2072957DefaultParagraphFont">(2)    A capital improvement to a principal asset, whether in the form of changes to an existing asset or the construction of a new asset, including special assessments;</span></p><p dir="ltr" class="s2072957Normal-000002"><span class="s2072957DefaultParagraphFont">(3)    Disbursements made to prepare property for rental, including tenant allowances, leasehold improvements, and broker's commissions;</span></p><p dir="ltr" class="s2072957Normal-000002"><span class="s2072957DefaultParagraphFont">(4)    Periodic payments on an obligation secured by a principal asset to the extent that the amount transferred from income to principal for depreciation is less than the periodic payments; and</span></p><p dir="ltr" class="s2072957Normal-000002"><span class="s2072957DefaultParagraphFont">(5)    Disbursements described in § 55-13A-502(a)(7).</span></p><p dir="ltr" class="s2072957Normal-000001"><span class="s2072957DefaultParagraphFont">(c) If the asset whose ownership gives rise to the disbursements becomes subject to a successive income interest after an income interest ends, a trustee may continue to transfer amounts from income to principal as provided in subsection (a).</span></p><p dir="ltr" class="s2072957Normal"><span xml:space="preserve" class="s2072957000003"> </span></p><p dir="ltr" class="s2072957Normal"><span class="s2072957SCL">Source:</span><span xml:space="preserve" class="s2072957SCL-000004"> SL 2007, ch 282, § 29.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072958Normal { 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.s2072958SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072958CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072958Normal-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.s2072958DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072958Normal-000001 { 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; } p.s2072958Normal-000002 { 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.s2072958000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072958SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072958SCL-000004 { 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="s2072958Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-505"><span class="s2072958SENU">55-13A-505</span></a><span xml:space="preserve" class="s2072958SENU">. </span><span class="s2072958CL">Income taxes.</span></p><p dir="ltr" class="s2072958Normal-000000"><span class="s2072958DefaultParagraphFont">(a) A tax required to be paid by a trustee based on receipts allocated to income must be paid from income.</span></p><p dir="ltr" class="s2072958Normal-000001"><span class="s2072958DefaultParagraphFont">(b) A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by the taxing authority.</span></p><p dir="ltr" class="s2072958Normal-000001"><span class="s2072958DefaultParagraphFont">(c) A tax required to be paid by a trustee on the trust's share of an entity's taxable income must be paid:</span></p><p dir="ltr" class="s2072958Normal-000002"><span class="s2072958DefaultParagraphFont">(1)    From income to the extent that receipts from the entity are allocated only to income;</span></p><p dir="ltr" class="s2072958Normal-000002"><span class="s2072958DefaultParagraphFont">(2)    From principal to the extent that receipts from the entity are allocated only to principal;</span></p><p dir="ltr" class="s2072958Normal-000002"><span class="s2072958DefaultParagraphFont">(3)    Proportionately from principal and income to the extent that receipts from the entity are allocated to both income and principal; and</span></p><p dir="ltr" class="s2072958Normal-000002"><span class="s2072958DefaultParagraphFont">(4)    From principal to the extent that the tax exceeds the total receipts from the entity.</span></p><p dir="ltr" class="s2072958Normal-000001"><span class="s2072958DefaultParagraphFont">(d) After applying subsections (a) through (c), the trustee shall adjust income or principal receipts to the extent that the trust's taxes are reduced because the trust receives a deduction for payments made to a beneficiary.</span></p><p dir="ltr" class="s2072958Normal"><span xml:space="preserve" class="s2072958000003"> </span></p><p dir="ltr" class="s2072958Normal"><span class="s2072958SCL">Source:</span><span xml:space="preserve" class="s2072958SCL-000004"> SL 2007, ch 282, § 30; SL 2009, ch 252, § 36.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072959Normal { 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.s2072959SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072959CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072959Normal-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.s2072959DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072959Normal-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.s2072959Normal-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.s2072959000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072959SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072959SCL-000004 { 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="s2072959Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-506"><span class="s2072959SENU">55-13A-506</span></a><span xml:space="preserve" class="s2072959SENU">. </span><span class="s2072959CL">Adjustments between principal and income because of taxes.</span></p><p dir="ltr" class="s2072959Normal-000000"><span class="s2072959DefaultParagraphFont">(a) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from:</span></p><p dir="ltr" class="s2072959Normal-000001"><span class="s2072959DefaultParagraphFont">(1)    Elections and decisions, other than those described in subsection (b), that the fiduciary makes from time to time regarding tax matters;</span></p><p dir="ltr" class="s2072959Normal-000001"><span class="s2072959DefaultParagraphFont">(2)    An income tax or any other tax that is imposed upon the fiduciary or a beneficiary as a result of a transaction involving or a distribution from the estate or trust; or</span></p><p dir="ltr" class="s2072959Normal-000001"><span class="s2072959DefaultParagraphFont">(3)    The ownership by an estate or trust of an interest in an entity whose taxable income, whether or not distributed, is includable in the taxable income of the estate, trust, or a beneficiary.</span></p><p dir="ltr" class="s2072959Normal-000002"><span class="s2072959DefaultParagraphFont">(b) If the amount of an estate tax marital deduction or charitable contribution deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes, and as a result estate taxes paid from principal are increased and income taxes paid by an estate, trust, or beneficiary are decreased, each estate, trust, or beneficiary that benefits from the decrease in income tax shall reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax to the extent that the principal used to pay the increase would have qualified for a marital deduction or charitable contribution deduction but for the payment. The proportionate share of the reimbursement for each estate, trust, or beneficiary whose income taxes are reduced must be the same as its proportionate share of the total decrease in income tax. An estate or trust shall reimburse principal from income.</span></p><p dir="ltr" class="s2072959Normal"><span xml:space="preserve" class="s2072959000003"> </span></p><p dir="ltr" class="s2072959Normal"><span class="s2072959SCL">Source:</span><span xml:space="preserve" class="s2072959SCL-000004"> SL 2007, ch 282, § 31.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072960Normal { 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.s2072960SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072960CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072960Normal-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.s2072960DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072960000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072960SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072960SCL-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="s2072960Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-601"><span class="s2072960SENU">55-13A-601</span></a><span xml:space="preserve" class="s2072960SENU">. </span><span class="s2072960CL">Uniformity of application and construction.</span></p><p dir="ltr" class="s2072960Normal-000000"><span class="s2072960DefaultParagraphFont">In applying and construing this Uniform Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.</span></p><p dir="ltr" class="s2072960Normal"><span xml:space="preserve" class="s2072960000001"> </span></p><p dir="ltr" class="s2072960Normal"><span class="s2072960SCL">Source:</span><span xml:space="preserve" class="s2072960SCL-000002"> SL 2007, ch 282, § 32.</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 55-13A - UNIFORM PRINCIPAL AND INCOME ACT </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072961Normal { 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.s2072961SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072961CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072961Normal-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.s2072961DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072961Normal-000001 { 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; } p.s2072961Normal-000002 { 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.s2072961000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072961SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072961SCL-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="s2072961Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-602"><span class="s2072961SENU">55-13A-602</span></a><span xml:space="preserve" class="s2072961SENU">. </span><span class="s2072961CL">Application of chapter to existing trusts and estates.</span></p><p dir="ltr" class="s2072961Normal-000000"><span xml:space="preserve" class="s2072961DefaultParagraphFont">This chapter applies to every trust or will created after July 1, 2007, except as otherwise expressly provided in the will or the terms of the trust or in this chapter. No trust or decedent's estate based upon a will executed after July 1, 2007, may utilize the provisions of chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13"><span class="s2072961DefaultParagraphFont">55-13</span></a><span xml:space="preserve" class="s2072961DefaultParagraphFont">. Every trust existing on June 30, 2007, or any decedent's estate existing on June 30, 2007, and based upon a will executed prior to July 1, 2007, may elect to apply the provisions of either chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13"><span class="s2072961DefaultParagraphFont">55-13</span></a><span xml:space="preserve" class="s2072961DefaultParagraphFont"> or this chapter. The election may be made by the trustee or personal representative upon providing sixty days written notice of the election to the beneficiaries of the trust or estate, as the case may be.</span></p><p dir="ltr" class="s2072961Normal-000001"><span class="s2072961DefaultParagraphFont">Any election made prior to July 1, 2008, is hereby ratified and remains in full force and effect.</span></p><p dir="ltr" class="s2072961Normal-000001"><span xml:space="preserve" class="s2072961DefaultParagraphFont">The provisions of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-13A-409"><span class="s2072961DefaultParagraphFont">55-13A-409</span></a><span xml:space="preserve" class="s2072961DefaultParagraphFont"> as amended by SL 2009, ch 252, § 35 apply to a trust described in § 55-13A-409(d) on and after the following dates:</span></p><p dir="ltr" class="s2072961Normal-000002"><span class="s2072961DefaultParagraphFont">(1)    If the trust is not funded as of July 1, 2009, the date of the decedent's death;</span></p><p dir="ltr" class="s2072961Normal-000002"><span class="s2072961DefaultParagraphFont">(2)    If the trust is initially funded in the calendar year beginning January 1, 2010, the date of the decedent's death;</span></p><p dir="ltr" class="s2072961Normal-000002"><span class="s2072961DefaultParagraphFont">(3)    If the trust is not described in subdivision (1) or (2), January 1, 2010.</span></p><p dir="ltr" class="s2072961Normal"><span xml:space="preserve" class="s2072961000003"> </span></p><p dir="ltr" class="s2072961Normal"><span class="s2072961SCL">Source:</span><span xml:space="preserve" class="s2072961SCL-000004"> SL 2007, ch 282, § 33; SL 2008, ch 257, § 15; SL 2009, ch 252, § 37.</span></p></div></body></html>