<html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s466f059df0f34835acc4a092cc792f33Normal { text-align: center; 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.s466f059df0f34835acc4a092cc792f33HG4 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s466f059df0f34835acc4a092cc792f33DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s466f059df0f34835acc4a092cc792f33HG4C { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s466f059df0f34835acc4a092cc792f33Normal-000000 { 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.s466f059df0f34835acc4a092cc792f33000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s466f059df0f34835acc4a092cc792f33B { margin-left: 1.38in; text-indent: -1.38in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 55-16 - QUALIFIED DISPOSITIONS IN TRUST"><meta property="og:description" content="SDLRC Codified Law 55-16 - QUALIFIED DISPOSITIONS IN TRUST"><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/55-16"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33Normal"><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33HG4">CHAPTER </span><a href="https://sdlegislature.gov/Statutes?Statute=55-16" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16</span></a></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33Normal"><span class="s466f059df0f34835acc4a092cc792f33HG4C">QUALIFIED DISPOSITIONS IN TRUST</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33Normal-000000"><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33000001"> </span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-1" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-1</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Definitions.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-2" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-2</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Trust instrument defined.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-3" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-3</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Qualified person defined.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-4" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-4</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Persons and entities not to be considered qualified person--Appointment, removal, or replacement of co-trustee, trust advisor, or trust protector.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-5" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-5</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Service as investment trust advisor--Service as fiduciary by transferor.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-6" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-6</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Successor qualified person.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-7" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-7</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Disposition to more than one trustee--Qualified disposition even if all trustees are not qualified persons.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-8" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-8</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Powers and rights of transferor--Effect on qualified disposition.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-9" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-9</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Creditors' actions limited to transfers with intent to defraud.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-10" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-10</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Claim of fraudulent transfer of settlor's assets--Requirements--Discovery--Transfer filing--Substantive rights.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-11" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-11</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Disposition by transferor who is a trustee--Time of disposition.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-12" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-12</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Creditor or other person--Rights with respect to a qualified disposition--Action against trustee, advisor, or trust preparer prohibited.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-13" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-13</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Action against trustee, advisor, or preparer of trust prohibited if action by creditor would be barred--Jurisdiction--Attorneys' fees and costs.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-14" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-14</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Multiple qualified dispositions in same trust instrument.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-15" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-15</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Application of chapter.</span></p><p dir="ltr" class="s466f059df0f34835acc4a092cc792f33B"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-16" rel="noopener"><span class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">55-16-16</span></a><span xml:space="preserve" class="s466f059df0f34835acc4a092cc792f33DefaultParagraphFont">    Avoidance of qualified disposition.</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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072992Normal { 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.s2072992SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072992CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072992Normal-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.s2072992DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2072992Normal-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.s2072992Normal-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.s2072992000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072992SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072992SCL-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="s2072992Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-1"><span class="s2072992SENU">55-16-1</span></a><span xml:space="preserve" class="s2072992SENU">. </span><span class="s2072992CL">Definitions.</span></p><p dir="ltr" class="s2072992Normal-000000"><span class="s2072992DefaultParagraphFont">Terms used in this chapter mean:</span></p><p dir="ltr" class="s2072992Normal-000001"><span class="s2072992DefaultParagraphFont">(1)    "Claim," a right to payment, whether or not the right is reduced to judgment liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured;</span></p><p dir="ltr" class="s2072992Normal-000001"><span class="s2072992DefaultParagraphFont">(2)    "Creditor," with respect to a transferor, a person who has a claim;</span></p><p dir="ltr" class="s2072992Normal-000001"><span class="s2072992DefaultParagraphFont">(3)    "Debt," liability on a claim;</span></p><p dir="ltr" class="s2072992Normal-000001"><span class="s2072992DefaultParagraphFont">(4)    "Disposition," a transfer, conveyance, or assignment of property, including a change in the legal ownership of property occurring upon the substitution of one trustee for another or the addition of one or more new trustees, or the exercise of a power so as to cause a transfer of property to a trustee or trustees. The term does not include the release or relinquishment of an interest in property that theretofore was the subject of a qualified disposition;</span></p><p dir="ltr" class="s2072992Normal-000001"><span class="s2072992DefaultParagraphFont">(5)    "Property," real property, personal property, and interests in real or personal property;</span></p><p dir="ltr" class="s2072992Normal-000001"><span class="s2072992DefaultParagraphFont">(6)    "Qualified disposition," a disposition by or from a transferor to a qualified person or qualified persons, without consideration or for less than fair market value, by means of a trust instrument;</span></p><p dir="ltr" class="s2072992Normal-000001"><span class="s2072992DefaultParagraphFont">(7)    "Spouse" and "former spouse," only persons to whom the transferor was married at, or before, the time the qualified disposition is made;</span></p><p dir="ltr" class="s2072992Normal-000001"><span class="s2072992DefaultParagraphFont">(8)    "Transferor," any person as an owner of property; as a holder of a power of appointment which authorizes the holder to appoint in favor of the holder, the holder's creditors, the holder's estate, or the creditors of the holder's estate; or as a trustee, directly or indirectly, makes a disposition or causes a disposition to be made.</span></p><p dir="ltr" class="s2072992Normal-000002"><span class="s2072992DefaultParagraphFont">The terms, transferor and beneficiary, may be any person as defined in subdivision 55-4-1(2).</span></p><p dir="ltr" class="s2072992Normal"><span xml:space="preserve" class="s2072992000003"> </span></p><p dir="ltr" class="s2072992Normal"><span class="s2072992SCL">Source:</span><span xml:space="preserve" class="s2072992SCL-000004"> SL 2005, ch 261, § 1; SL 2015, ch 240, § 20; SL 2018, ch 275, § 28.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.s2083055Normal { 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.s2083055SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2083055CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2083055Statute { 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.s2083055DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2083055StatuteNumber1 { 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.s2083055StatuteNumber2 { margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } a.s2083055000000 { text-decoration: none; } p.s2083055Statute-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; } span.s2083055000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2083055NoIndent { text-indent: 0.00in; 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.s2083055DefaultParagraphFont-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2083055SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 55-16-2 - Trust instrument defined."><meta property="og:description" content="SDLRC Codified Law 55-16-2 - Trust instrument defined."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes?Statute=55-16-2"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="s2083055Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-2" rel="noopener"><span class="s2083055SENU">55-16-2</span></a><span xml:space="preserve" class="s2083055SENU">. </span><span xml:space="preserve" class="s2083055CL">Trust instrument defined. </span></p><p dir="ltr" class="s2083055Statute"><span class="s2083055DefaultParagraphFont">For the purposes of this chapter, a trust instrument, is an instrument appointing a qualified person or qualified persons for the property that is the subject of a disposition, which instrument:</span></p><p dir="ltr" class="s2083055StatuteNumber1"><span class="s2083055DefaultParagraphFont">(1)    Expressly incorporates the law of this state to govern the validity, construction, and administration of the trust;</span></p><p dir="ltr" class="s2083055StatuteNumber1"><span class="s2083055DefaultParagraphFont">(2)    Is irrevocable, but a trust instrument may not be deemed revocable on account of its inclusion of one or more of the following:</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span class="s2083055DefaultParagraphFont">(a)    A transferor's power to veto a distribution from the trust;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span class="s2083055DefaultParagraphFont">(b)    An inter vivos power of appointment, other than an inter vivos power exercisable solely by the transferor in favor of the transferor, the transferor's creditors, the transferor's estate, or the creditors of the transferor's estate;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span class="s2083055DefaultParagraphFont">(c)    A testamentary power of appointment;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span class="s2083055DefaultParagraphFont">(d)    The transferor's potential or actual receipt of income, including rights to such income retained in the trust instrument;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span class="s2083055DefaultParagraphFont">(e)    The transferor's potential or actual receipt of income or principal from a charitable remainder unitrust or charitable remainder annuity trust as such terms are defined in § 664 of the Internal Revenue Code of 1986, 26 U.S.C. § 664, as of January 1, 2009;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span class="s2083055DefaultParagraphFont">(f)    The transferor's receipt each year of a percentage of the value as determined from time to time pursuant to the trust instrument, but not exceeding the amount that may be defined as income under § 643(b) of the Internal Revenue Code of 1986, 26 U.S.C. § 643(b), as of January 1, 2009;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span xml:space="preserve" class="s2083055DefaultParagraphFont">(g)    The transferor's potential or actual receipt or use of principal if the potential or actual receipt or use of principal would be the result of a qualified person, including a qualified person acting at the direction of a trust advisor described in this section, acting either in the qualified person's sole discretion or </span><a id="_pagenumber15" class="s2083055000000" rel="noopener"></a><span class="s2083055DefaultParagraphFont">pursuant to an ascertainable standard contained in the trust instrument;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span class="s2083055DefaultParagraphFont">(h)    The transferor's right to remove a trustee, protector, or trust advisor and to appoint a new trustee, protector, or trust advisor, other than a trustee who is a related or subordinate party with respect to the transferor within the meaning of § 672(c) of the Internal Revenue Code of 1986, 26 U.S.C. § 672(c), as of January 1, 2009;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span class="s2083055DefaultParagraphFont">(i)    The transferor's potential or actual use of real property held under a qualified personal residence trust within the meaning of such term as described in the regulations promulgated under § 2702(c) of the Internal Revenue Code of 1986, 26 U.S.C. § 2702(c), as of January 1, 2009;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span class="s2083055DefaultParagraphFont">(j)    A pour back provision that pours back to the transferor's will or revocable trust all or part of the trust assets;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span xml:space="preserve" class="s2083055DefaultParagraphFont">(k)    The transferor's potential or actual receipt of income or principal to pay, in whole or in part, income taxes due on income of the trust if the potential or actual receipt of income or principal is pursuant to a provision in the trust instrument that expressly provides for the payment of the taxes and if the potential or actual receipt of income or principal would be the result of a qualified person's acting in the qualified person's discretion or pursuant to a mandatory direction in the trust instrument or acting at the direction of an advisor described in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-4" rel="noopener"><span class="s2083055DefaultParagraphFont">55-16-4</span></a><span class="s2083055DefaultParagraphFont">;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span class="s2083055DefaultParagraphFont">(l)    The ability, whether pursuant to discretion, direction, or the grantor's exercise of a testamentary power of appointment, of a qualified person to pay, after the death of the transferor, all or any part of the debts of the transferor outstanding at the time of the transferor's death, the expenses of administering the transferor's estate, or any estate or inheritance tax imposed on or with respect to the transferor's estate;</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span xml:space="preserve" class="s2083055DefaultParagraphFont">(m)    A transferor's service as a noncontrolling member of a distribution committee that functions as a distribution trust advisor, as defined in subdivision </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1B-1" rel="noopener"><span class="s2083055DefaultParagraphFont">55-1B-1</span></a><span class="s2083055DefaultParagraphFont">(7); or</span></p><p dir="ltr" class="s2083055StatuteNumber2"><span class="s2083055DefaultParagraphFont">(n)    A transferor's enjoyment of a power to reacquire the trust corpus by substituting other property of an equivalent value within the meaning of § 675(4)(C) of the Internal Revenue Code of 1986, 26 U.S.C. § 675(4)(C), as of January 1, 2021; and</span></p><p dir="ltr" class="s2083055StatuteNumber1"><span xml:space="preserve" class="s2083055DefaultParagraphFont">(3)    Provides that the interest of the transferor or other beneficiary in the trust property or the income from the trust property may not be transferred, assigned, pledged, or mortgaged, whether voluntarily or involuntarily, before the qualified person distributes the property or income from the property to the beneficiary, and such provision of the trust instrument constitutes a restriction on the transfer of the transferor's beneficial interest in the trust that is enforceable under </span><a id="_pagenumber16" class="s2083055000000" rel="noopener"></a><span class="s2083055DefaultParagraphFont">applicable nonbankruptcy law within the meaning of § 541(c)(2) of the Bankruptcy Code, 11 U.S.C. § 541(c)(2), as of January 1, 2009.</span></p><p dir="ltr" class="s2083055Statute-000001"><span class="s2083055DefaultParagraphFont">A disposition by a trustee that is not a qualified person to a trustee that is a qualified person may not be treated as other than a qualified disposition solely because the trust instrument fails to meet the requirements of subdivision (1) of this section.</span></p><p dir="ltr" class="s2083055Normal"><span xml:space="preserve" class="s2083055000002"> </span></p><p dir="ltr" class="s2083055NoIndent"><span xml:space="preserve" class="s2083055DefaultParagraphFont-000003">Source: </span><span class="s2083055SCL">SL 2005, ch 261, § 2; SL 2007, ch 247, § 11; SL 2009, ch 252, § 41; SL 2012, ch 233, § 19; SL 2013, ch 239, § 18; SL 2014, ch 226, § 22; SL 2020, ch 206, § 16; SL 2021, ch 207, § 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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072994Normal { 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.s2072994SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072994CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072994Normal-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.s2072994DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072994000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072994SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072994SCL-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="s2072994Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-3"><span class="s2072994SENU">55-16-3</span></a><span xml:space="preserve" class="s2072994SENU">. </span><span class="s2072994CL">Qualified person defined.</span></p><p dir="ltr" class="s2072994Normal-000000"><span xml:space="preserve" class="s2072994DefaultParagraphFont">For the purposes of this chapter, a qualified person is any person who qualifies as a qualified person under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-3-41"><span class="s2072994DefaultParagraphFont">55-3-41</span></a><span xml:space="preserve" class="s2072994DefaultParagraphFont"> and who meets all the requirements of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-3-39"><span class="s2072994DefaultParagraphFont">55-3-39</span></a><span xml:space="preserve" class="s2072994DefaultParagraphFont"> other than the transferor.</span></p><p dir="ltr" class="s2072994Normal"><span xml:space="preserve" class="s2072994000001"> </span></p><p dir="ltr" class="s2072994Normal"><span class="s2072994SCL">Source:</span><span xml:space="preserve" class="s2072994SCL-000002"> SL 2005, ch 261, § 3; SL 2009, ch 252, § 42.</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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072995Normal { 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.s2072995SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072995CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072995Normal-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.s2072995DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072995000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072995SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072995SCL-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="s2072995Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-4"><span class="s2072995SENU">55-16-4</span></a><span xml:space="preserve" class="s2072995SENU">. </span><span class="s2072995CL">Persons and entities not to be considered qualified person--Appointment, removal, or replacement of co-trustee, trust advisor, or trust protector.</span></p><p dir="ltr" class="s2072995Normal-000000"><span xml:space="preserve" class="s2072995DefaultParagraphFont">Neither the transferor nor any other natural person who is a nonresident of this state nor an entity that is not authorized by the law of this state to act as a trustee or whose activities are not subject to supervision as provided in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-3"><span class="s2072995DefaultParagraphFont">55-16-3</span></a><span xml:space="preserve" class="s2072995DefaultParagraphFont"> may be considered a qualified person. However, nothing in this chapter precludes a transferor from appointing, removing, or replacing one or more co-trustees, trust advisors, or trust protectors, regardless of whether or not such trust advisor or trust protector is a fiduciary.</span></p><p dir="ltr" class="s2072995Normal"><span xml:space="preserve" class="s2072995000001"> </span></p><p dir="ltr" class="s2072995Normal"><span class="s2072995SCL">Source:</span><span xml:space="preserve" class="s2072995SCL-000002"> SL 2005, ch 261, § 4; SL 2006, ch 243, § 5; SL 2011, ch 212, § 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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2079874Normal { 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.s2079874SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2079874CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2079874Statute { 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.s2079874DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2079874000000 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2079874DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2079874SCL { 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="s2079874Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-5"><span class="s2079874SENU">55-16-5</span></a><span xml:space="preserve" class="s2079874SENU">. </span><span class="s2079874CL">Service as investment trust advisor--Service as fiduciary by transferor.</span></p><p dir="ltr" class="s2079874Statute"><span xml:space="preserve" class="s2079874DefaultParagraphFont">Any person may serve as an investment trust advisor, as defined in subdivision </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1B-1"><span class="s2079874DefaultParagraphFont">55-1B-1</span></a><span xml:space="preserve" class="s2079874DefaultParagraphFont">(6), notwithstanding that the person is the transferor of the qualified disposition, but a transferor may not otherwise serve as a fiduciary under a trust instrument except as stated in subdivision </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-2"><span class="s2079874DefaultParagraphFont">55-16-2</span></a><span class="s2079874DefaultParagraphFont">(2). While serving as an investment trust advisor of the trust, the person may have all powers authorized by statute or by the trust instrument, including the power to vote by proxy any stock owned by the trust.</span></p><p dir="ltr" class="s2079874Normal"><span xml:space="preserve" class="s2079874000000"> </span></p><p dir="ltr" class="s2079874Normal"><span xml:space="preserve" class="s2079874DefaultParagraphFont-000001">Source: </span><span class="s2079874SCL">SL 2005, ch 261, § 5; SL 2006, ch 243, § 6; SL 2010, ch 232, § 28; SL 2012, ch 233, § 15; SL 2019, ch 209, § 8; SL 2020, ch 206, § 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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072997Normal { 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.s2072997SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072997CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072997Normal-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.s2072997DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072997000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072997SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072997SCL-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="s2072997Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-6"><span class="s2072997SENU">55-16-6</span></a><span xml:space="preserve" class="s2072997SENU">. </span><span class="s2072997CL">Successor qualified person.</span></p><p dir="ltr" class="s2072997Normal-000000"><span xml:space="preserve" class="s2072997DefaultParagraphFont">If a qualified person of a trust ceases to meet the requirements of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-3"><span class="s2072997DefaultParagraphFont">55-16-3</span></a><span class="s2072997DefaultParagraphFont">, and there remains no trustee that meets such requirements, such qualified person shall be deemed to have resigned as of the time of such cessation, and thereupon the successor qualified person provided for in the trust instrument shall become a qualified person of the trust, or in the absence of any successor qualified person provided for in the trust instrument, the circuit court shall, upon application of any interested party, appoint a successor qualified person.</span></p><p dir="ltr" class="s2072997Normal"><span xml:space="preserve" class="s2072997000001"> </span></p><p dir="ltr" class="s2072997Normal"><span class="s2072997SCL">Source:</span><span xml:space="preserve" class="s2072997SCL-000002"> SL 2005, ch 261, § 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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072998Normal { 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.s2072998SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072998CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072998Normal-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.s2072998DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072998000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072998SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072998SCL-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="s2072998Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-7"><span class="s2072998SENU">55-16-7</span></a><span xml:space="preserve" class="s2072998SENU">. </span><span class="s2072998CL">Disposition to more than one trustee--Qualified disposition even if all trustees are not qualified persons.</span></p><p dir="ltr" class="s2072998Normal-000000"><span class="s2072998DefaultParagraphFont">In the case of a disposition to more than one trustee, a disposition that is otherwise a qualified disposition may not be treated as other than a qualified disposition solely because not all of the trustees are qualified persons.</span></p><p dir="ltr" class="s2072998Normal"><span xml:space="preserve" class="s2072998000001"> </span></p><p dir="ltr" class="s2072998Normal"><span class="s2072998SCL">Source:</span><span xml:space="preserve" class="s2072998SCL-000002"> SL 2005, ch 261, § 7.</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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2072999Normal { 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.s2072999SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072999CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2072999Normal-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.s2072999DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072999000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2072999SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2072999SCL-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="s2072999Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-8"><span class="s2072999SENU">55-16-8</span></a><span xml:space="preserve" class="s2072999SENU">. </span><span class="s2072999CL">Powers and rights of transferor--Effect on qualified disposition.</span></p><p dir="ltr" class="s2072999Normal-000000"><span xml:space="preserve" class="s2072999DefaultParagraphFont">A qualified disposition is subject to §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-9"><span class="s2072999DefaultParagraphFont">55-16-9</span></a><span xml:space="preserve" class="s2072999DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-14"><span class="s2072999DefaultParagraphFont">55-16-14</span></a><span xml:space="preserve" class="s2072999DefaultParagraphFont">, inclusive, notwithstanding a transferor's retention of any or all of the powers and rights described in subdivision 55-16-2(2) and the transferor's service as trust advisor pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-5"><span class="s2072999DefaultParagraphFont">55-16-5</span></a><span xml:space="preserve" class="s2072999DefaultParagraphFont">. The transferor has only such powers and rights as are conferred by the trust instrument. Except as permitted by §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-2"><span class="s2072999DefaultParagraphFont">55-16-2</span></a><span xml:space="preserve" class="s2072999DefaultParagraphFont"> and </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-5"><span class="s2072999DefaultParagraphFont">55-16-5</span></a><span class="s2072999DefaultParagraphFont">, a transferor has no rights or authority with respect to the property that is the subject of a qualified disposition or the income therefrom, and any agreement or understanding purporting to grant or permit the retention of any greater rights or authority is void.</span></p><p dir="ltr" class="s2072999Normal"><span xml:space="preserve" class="s2072999000001"> </span></p><p dir="ltr" class="s2072999Normal"><span class="s2072999SCL">Source:</span><span xml:space="preserve" class="s2072999SCL-000002"> SL 2005, ch 261, § 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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073000Normal { 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.s2073000SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073000CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073000Normal-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.s2073000DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073000000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073000SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073000SCL-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="s2073000Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-9"><span class="s2073000SENU">55-16-9</span></a><span xml:space="preserve" class="s2073000SENU">. </span><span class="s2073000CL">Creditors' actions limited to transfers with intent to defraud.</span></p><p dir="ltr" class="s2073000Normal-000000"><span xml:space="preserve" class="s2073000DefaultParagraphFont">Notwithstanding any other provision of law, including chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=54-8A"><span class="s2073000DefaultParagraphFont">54-8A</span></a><span xml:space="preserve" class="s2073000DefaultParagraphFont">, no action of any kind, including an action to enforce a judgment entered by a court or other body having adjudicative authority, may be brought at law or in equity for an attachment or other provisional remedy against property that is the subject of a qualified disposition or for avoidance of a qualified disposition unless the settlor's transfer of property was made with the intent to defraud that specific creditor. In the event of any conflict between any provision of this chapter and any provision of chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=54-8A"><span class="s2073000DefaultParagraphFont">54-8A</span></a><span xml:space="preserve" class="s2073000DefaultParagraphFont"> or any other provision of law similar to any provision of chapter </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=54-8A"><span class="s2073000DefaultParagraphFont">54-8A</span></a><span class="s2073000DefaultParagraphFont">, the provisions of this chapter control and prevail.</span></p><p dir="ltr" class="s2073000Normal"><span xml:space="preserve" class="s2073000000001"> </span></p><p dir="ltr" class="s2073000Normal"><span class="s2073000SCL">Source:</span><span xml:space="preserve" class="s2073000SCL-000002"> SL 2005, ch 261, § 9; SL 2008, ch 257, § 16; SL 2014, ch 226, § 21.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml" lang="en-US"><head><meta charset="UTF-8"><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML"><style>span { white-space: pre-wrap; } p.sa7202a7dc1824ac6ad3f63e2cfefaad9Normal { 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.sa7202a7dc1824ac6ad3f63e2cfefaad9SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sa7202a7dc1824ac6ad3f63e2cfefaad9CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.sa7202a7dc1824ac6ad3f63e2cfefaad9Statute { 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.sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.sa7202a7dc1824ac6ad3f63e2cfefaad9StatuteNumber1 { margin-left: 0.75in; 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margin-right: 0; margin-bottom: .001pt; } span.sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont-000001 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sa7202a7dc1824ac6ad3f63e2cfefaad9SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style><meta name="viewport" content="width=device-width, initial-scale=1"><meta name="twitter:card" content="summary"><meta property="og:title" content="SD 55-16-10 - Claim of fraudulent transfer of settlor's assets--Requirements--Discovery--Transfer filing--Substantive rights."><meta property="og:description" content="SDLRC Codified Law 55-16-10 - Claim of fraudulent transfer of settlor's assets--Requirements--Discovery--Transfer filing--Substantive rights."><meta property="og:type" content="website"><meta property="og:url" content="https://sdlegislature.gov/Statutes/55-16-10"><meta property="og:image" content="https://lawmakerdocuments.blob.core.usgovcloudapi.net/photos/logoshape.webp"><meta property="og:site_name" content="South Dakota Legislature"></head><body><div><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9Normal"><a href="https://sdlegislature.gov/Statutes?Statute=55-16-10" rel="noopener"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9SENU">55-16-10</span></a><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9SENU">. </span><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9CL">Claim of fraudulent transfer of settlor's assets--Requirements--Discovery--Transfer filing--Substantive rights.</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9Statute"><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">A cause of action or claim for relief with respect to a fraudulent transfer of a settlor's assets under § </span><a href="https://sdlegislature.gov/Statutes?Statute=55-16-9" rel="noopener"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">55-16-9</span></a><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont"> is extinguished unless the action under § </span><a href="https://sdlegislature.gov/Statutes?Statute=55-16-9" rel="noopener"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">55-16-9</span></a><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont"> is brought by a creditor of the settlor who:</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9StatuteNumber1"><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">(1)    Is a creditor of the settlor before the settlor's assets are transferred to the trust, and the action under § </span><a href="https://sdlegislature.gov/Statutes?Statute=55-16-9" rel="noopener"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">55-16-9</span></a><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont"> is brought within the later of:</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9StatuteNumber2"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">(a)    Two years after the transfer is made; or</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9StatuteNumber2"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">(b)    Six months after the transfer is or reasonably could have been discovered by the creditor if the creditor:</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9StatuteNumber3"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">(i)    Can demonstrate that the creditor asserted a specific claim against the settlor before the transfer; or</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9StatuteNumber3"><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">(ii)    Files another action, other than an action under § </span><a href="https://sdlegislature.gov/Statutes?Statute=55-16-9" rel="noopener"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">55-16-9</span></a><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">, against the settlor that asserts a claim based on an act or omission of the settlor that occurred before the transfer, and the action described in this sub-subsection is filed within two years after the transfer; or</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9StatuteNumber1"><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">(2)    Becomes a creditor subsequent to the transfer into trust, and the action under § </span><a href="https://sdlegislature.gov/Statutes?Statute=55-16-9" rel="noopener"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">55-16-9</span></a><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont"> is brought within two years after the transfer is made.</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9Statute"><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">In any action described in § </span><a href="https://sdlegislature.gov/Statutes?Statute=55-16-9" rel="noopener"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">55-16-9</span></a><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">, the burden to prove the matter by clear and convincing evidence is upon the creditor.</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9Statute"><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">A person is deemed to have discovered a transfer at the time a public record of the transfer is made, including the conveyance of an interest in real property, which is recorded in the appropriate public filing office where the property is located, the filing of a financing statement pursuant to chapter </span><a href="https://sdlegislature.gov/Statutes?Statute=57A-9" rel="noopener"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">57A-9</span></a><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">, or the filing of a bill of sale or other transfer instrument regarding personal property.</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9Statute"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">The filing of a bill of sale or other transfer instrument that conveys personal property to a trust governed by this chapter must be filed in an applicable public filing office.</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9Statute"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">If the transferor is a natural person and is a resident of this state, the personal property transfer instrument must be recorded in the county in this state where the transferor maintains the transferor's principal residence.</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9Statute"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">In all other cases, the personal property transfer instrument must be recorded in the county in this state where the trustee of the trust maintains a principal residence or principal place of business.</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9Statute"><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">This section, §§ </span><a href="https://sdlegislature.gov/Statutes?Statute=55-16-9" rel="noopener"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">55-16-9</span></a><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">, and </span><a href="https://sdlegislature.gov/Statutes?Statute=55-16-11" rel="noopener"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">55-16-11</span></a><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes?Statute=55-16-13" rel="noopener"><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">55-16-13</span></a><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont">, inclusive, are inseparably interwoven with substantive rights, and a deprivation of legal rights would result if another jurisdiction's contrary laws and regulations are applied to a claim or cause of action described therein.</span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9Normal"><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9000000"> </span></p><p dir="ltr" class="sa7202a7dc1824ac6ad3f63e2cfefaad9NoIndent"><span xml:space="preserve" class="sa7202a7dc1824ac6ad3f63e2cfefaad9DefaultParagraphFont-000001">Source: </span><span class="sa7202a7dc1824ac6ad3f63e2cfefaad9SCL">SL 2005, ch 261, § 10; SL 2008, ch 257, § 17; SL 2012, ch 233, § 16; SL 2016, ch 231, § 24; SL 2017, ch 204, § 22; SL 2026, ch 198, § 7.</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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073002Normal { 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.s2073002SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073002CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073002Normal-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.s2073002DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073002Normal-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.s2073002000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073002SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073002SCL-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="s2073002Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-11"><span class="s2073002SENU">55-16-11</span></a><span xml:space="preserve" class="s2073002SENU">. </span><span class="s2073002CL">Disposition by transferor who is a trustee--Time of disposition.</span></p><p dir="ltr" class="s2073002Normal-000000"><span class="s2073002DefaultParagraphFont">A qualified disposition that is made by means of a disposition by a transferor who is a trustee is deemed to have been made as of the time, whether before, on, or after July 1, 2005, the property that is the subject of the qualified disposition was originally transferred to the transferor, or any predecessor trustee, making the qualified disposition in a form that meets the requirements of subdivisions 55-16-2(2) and (3). Further, the provisions of this section apply to determine the date the transfer is deemed to have been made, notwithstanding that the original transfer was to a trust originally within or outside of the jurisdiction of South Dakota.</span></p><p dir="ltr" class="s2073002Normal-000001"><span class="s2073002DefaultParagraphFont">If property transferred to a spendthrift trust is conveyed to the settlor or to a beneficiary for the purpose of obtaining a loan secured by a mortgage or deed of trust on the property and then reconveyed to the trust within one hundred eighty days of recording the mortgage or deed of trust, for purposes of subdivision 55-16-10(1), the transfer is disregarded and the reconveyance relates back to the date the property was originally transferred to the trust. The mortgage or deed of trust on the property is enforceable against the trust.</span></p><p dir="ltr" class="s2073002Normal"><span xml:space="preserve" class="s2073002000002"> </span></p><p dir="ltr" class="s2073002Normal"><span class="s2073002SCL">Source:</span><span xml:space="preserve" class="s2073002SCL-000003"> SL 2005, ch 261, § 11; SL 2012, ch 233, § 17; SL 2016, ch 231, § 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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073003Normal { 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.s2073003SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073003CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073003Normal-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.s2073003DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073003000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073003SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073003SCL-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="s2073003Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-12"><span class="s2073003SENU">55-16-12</span></a><span xml:space="preserve" class="s2073003SENU">. </span><span class="s2073003CL">Creditor or other person--Rights with respect to a qualified disposition--Action against trustee, advisor, or trust preparer prohibited.</span></p><p dir="ltr" class="s2073003Normal-000000"><span xml:space="preserve" class="s2073003DefaultParagraphFont">Notwithstanding any law to the contrary, a creditor, including a creditor whose claim arose before or after a qualified disposition, or any other person has only such rights with respect to a qualified disposition as are provided in §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-9"><span class="s2073003DefaultParagraphFont">55-16-9</span></a><span xml:space="preserve" class="s2073003DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-16"><span class="s2073003DefaultParagraphFont">55-16-16</span></a><span xml:space="preserve" class="s2073003DefaultParagraphFont">, inclusive, and no such creditor nor any other person has any claim or cause of action against the trustee, or advisor, described in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-4"><span class="s2073003DefaultParagraphFont">55-16-4</span></a><span xml:space="preserve" class="s2073003DefaultParagraphFont">, of a trust that is the subject of a qualified disposition, or against any person involved in the counseling, drafting, preparation, execution, or funding of a trust that is the subject of a qualified disposition. In addition to the provisions of § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-1-43"><span class="s2073003DefaultParagraphFont">55-1-43</span></a><span xml:space="preserve" class="s2073003DefaultParagraphFont">, at no time is a qualified person, as defined in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-3"><span class="s2073003DefaultParagraphFont">55-16-3</span></a><span xml:space="preserve" class="s2073003DefaultParagraphFont">, personally liable to a creditor of a transferor or any other person for distributions made by the qualified person, before the creditor or person notified the qualified person, in writing, that a claim or cause of action existed. This applies regardless of whether the distributions are made to or for the benefit of the transferor or a beneficiary during the period in which a creditor or other person could make a claim as provided in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-10"><span class="s2073003DefaultParagraphFont">55-16-10</span></a><span class="s2073003DefaultParagraphFont">.</span></p><p dir="ltr" class="s2073003Normal"><span xml:space="preserve" class="s2073003000001"> </span></p><p dir="ltr" class="s2073003Normal"><span class="s2073003SCL">Source:</span><span xml:space="preserve" class="s2073003SCL-000002"> SL 2005, ch 261, § 12; SL 2012, ch 233, § 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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073004Normal { 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.s2073004SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073004CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073004Normal-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.s2073004DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073004000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073004SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073004SCL-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="s2073004Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-13"><span class="s2073004SENU">55-16-13</span></a><span xml:space="preserve" class="s2073004SENU">. </span><span class="s2073004CL">Action against trustee, advisor, or preparer of trust prohibited if action by creditor would be barred--Jurisdiction--Attorneys' fees and costs.</span></p><p dir="ltr" class="s2073004Normal-000000"><span xml:space="preserve" class="s2073004DefaultParagraphFont">Notwithstanding any other provision of law, no action of any kind, including an action to enforce a judgment entered by a court or other body having adjudicative authority, may be brought at law or in equity against the trustee, or advisor described in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-4"><span class="s2073004DefaultParagraphFont">55-16-4</span></a><span xml:space="preserve" class="s2073004DefaultParagraphFont">, of a trust that is the subject of a qualified disposition, or against any person involved in the counseling, drafting, preparation, execution, or funding of a trust that is the subject of a qualified disposition, if, as of the date such action is brought, an action by a creditor with respect to such qualified disposition would be barred under §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-9"><span class="s2073004DefaultParagraphFont">55-16-9</span></a><span xml:space="preserve" class="s2073004DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-12"><span class="s2073004DefaultParagraphFont">55-16-12</span></a><span class="s2073004DefaultParagraphFont">, inclusive. A court of this state has exclusive jurisdiction over an action brought under a claim for relief that is based on a transfer of property to a trust that is the subject of this section. A court of this state may award attorneys' fees and costs to the prevailing party in such an action. In any action described in this section, the burden to prove the matter by clear and convincing evidence is upon the creditor.</span></p><p dir="ltr" class="s2073004Normal"><span xml:space="preserve" class="s2073004000001"> </span></p><p dir="ltr" class="s2073004Normal"><span class="s2073004SCL">Source:</span><span xml:space="preserve" class="s2073004SCL-000002"> SL 2005, ch 261, § 13; SL 2007, ch 247, § 12; SL 2009, ch 252, § 44; SL 2016, ch 231, § 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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073005Normal { 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.s2073005SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073005CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073005Normal-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.s2073005DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073005Normal-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.s2073005000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073005SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073005SCL-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="s2073005Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-14"><span class="s2073005SENU">55-16-14</span></a><span xml:space="preserve" class="s2073005SENU">. </span><span class="s2073005CL">Multiple qualified dispositions in same trust instrument.</span></p><p dir="ltr" class="s2073005Normal-000000"><span class="s2073005DefaultParagraphFont">If more than one qualified disposition is made by means of the same trust instrument:</span></p><p dir="ltr" class="s2073005Normal-000001"><span xml:space="preserve" class="s2073005DefaultParagraphFont">(1)    The making of a subsequent qualified disposition shall be disregarded in determining whether a creditor's claim with respect to a prior qualified disposition is extinguished as provided in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-10"><span class="s2073005DefaultParagraphFont">55-16-10</span></a><span class="s2073005DefaultParagraphFont">; and</span></p><p dir="ltr" class="s2073005Normal-000001"><span class="s2073005DefaultParagraphFont">(2)    Any distribution to a beneficiary is deemed to have been made from the latest such qualified disposition.</span></p><p dir="ltr" class="s2073005Normal"><span xml:space="preserve" class="s2073005000002"> </span></p><p dir="ltr" class="s2073005Normal"><span class="s2073005SCL">Source:</span><span xml:space="preserve" class="s2073005SCL-000003"> SL 2005, ch 261, § 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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073006Normal { 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.s2073006SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073006CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073006Normal-000000 { margin-top: 0; margin-bottom: 0; margin-left: 3.50in; text-indent: -3.00in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073006DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073006Normal-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.s2073006Normal-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.s2073006Normal-000003 { margin-top: 0; margin-bottom: 0; margin-left: 0.70in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-right: 0; } span.s2073006000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073006SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073006SCL-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="s2073006Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-15"><span class="s2073006SENU">55-16-15</span></a><span xml:space="preserve" class="s2073006SENU">. </span><span class="s2073006CL">Application of chapter.</span></p><p dir="ltr" class="s2073006Normal-000000"><span xml:space="preserve" class="s2073006DefaultParagraphFont">(1)    Notwithstanding the provisions of §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-9"><span class="s2073006DefaultParagraphFont">55-16-9</span></a><span xml:space="preserve" class="s2073006DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-14"><span class="s2073006DefaultParagraphFont">55-16-14</span></a><span class="s2073006DefaultParagraphFont">, inclusive, but subject to subdivision (2) of this section, this chapter does not apply in any respect to any person to whom at the time of transfer the transferor is indebted on account of an agreement or order of court for the payment of support or alimony in favor of the transferor's spouse, former spouse, or children, or for a division or distribution of property in favor of the transferor's spouse or former spouse, to the extent of the debt.</span></p><p dir="ltr" class="s2073006Normal-000001"><span xml:space="preserve" class="s2073006DefaultParagraphFont">(2)    If the transferor is married at the time of the transfer, the provisions of §§ </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-9"><span class="s2073006DefaultParagraphFont">55-16-9</span></a><span xml:space="preserve" class="s2073006DefaultParagraphFont"> to </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-14"><span class="s2073006DefaultParagraphFont">55-16-14</span></a><span class="s2073006DefaultParagraphFont">, inclusive, and this chapter apply to:</span></p><p dir="ltr" class="s2073006Normal-000002"><span class="s2073006DefaultParagraphFont">(a)    Any of the transferor's separate property transferred to the trust; and</span></p><p dir="ltr" class="s2073006Normal-000002"><span class="s2073006DefaultParagraphFont">(b)    Any marital property transferred to the trust if the spouse or former spouse was provided with notice in the form set forth in subdivision (3) of this section, or executed a written consent to the transfer after being provided the information set forth in the notice.</span></p><p dir="ltr" class="s2073006Normal-000001"><span class="s2073006DefaultParagraphFont">(3)    For purposes of the application of this section, a notice of transfer of property to a trust subject to this chapter:</span></p><p dir="ltr" class="s2073006Normal-000002"><span class="s2073006DefaultParagraphFont">(a)    Shall also contain the following language, in capital letters, at or near the top of the notice:</span></p><p dir="ltr" class="s2073006Normal-000003"><span class="s2073006DefaultParagraphFont">YOUR SPOUSE IS CREATING A PERMANENT TRUST INTO WHICH PROPERTY IS BEING TRANSFERRED.</span></p><p dir="ltr" class="s2073006Normal-000003"><span class="s2073006DefaultParagraphFont">YOUR RIGHTS TO THIS PROPERTY MAY BE AFFECTED DURING YOUR MARRIAGE, UPON DIVORCE (INCLUDING THE PAYMENT OF CHILD SUPPORT OR ALIMONY OR A DIVISION OR DISTRIBUTION OF PROPERTY IN A DIVORCE), OR AT THE DEATH OF YOUR SPOUSE.</span></p><p dir="ltr" class="s2073006Normal-000003"><span class="s2073006DefaultParagraphFont">YOU HAVE A VERY LIMITED PERIOD OF TIME TO OBJECT TO THE TRANSFER OF PROPERTY INTO THIS TRUST.</span></p><p dir="ltr" class="s2073006Normal-000003"><span class="s2073006DefaultParagraphFont">YOU MAY, UPON REQUEST TO THE TRUSTEE AT THE ADDRESS BELOW, BE FURNISHED A COPY OF THE TRUST DOCUMENT.</span></p><p dir="ltr" class="s2073006Normal-000003"><span class="s2073006DefaultParagraphFont">IF YOU HAVE ANY QUESTIONS, YOU SHOULD IMMEDIATELY SEEK INDEPENDENT LEGAL ADVICE.</span></p><p dir="ltr" class="s2073006Normal-000003"><span class="s2073006DefaultParagraphFont">IF YOU FAIL TO OBJECT WITHIN THE REQUIRED TIME PERIOD, YOU WILL HAVE CONSENTED TO THE TRANSFER OF PROPERTY INTO THIS TRUST.</span></p><p dir="ltr" class="s2073006Normal-000002"><span class="s2073006DefaultParagraphFont">(b)    Shall contain a description of the property being transferred to the trust and the name of the trust;</span></p><p dir="ltr" class="s2073006Normal-000002"><span class="s2073006DefaultParagraphFont">(c)    May require that any person who is eligible to receive information pursuant to this section be bound by the duty of confidentiality that binds the trustee before receiving such information from the trustee; and</span></p><p dir="ltr" class="s2073006Normal-000002"><span class="s2073006DefaultParagraphFont">(d)    Shall be provided by the transferor, the transferor's agent, the trustee, or other fiduciary of the trust.</span></p><p dir="ltr" class="s2073006Normal-000001"><span xml:space="preserve" class="s2073006DefaultParagraphFont">(4)    If a notice is provided under this section before the property is transferred, the period to commence an action under § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-10"><span class="s2073006DefaultParagraphFont">55-16-10</span></a><span xml:space="preserve" class="s2073006DefaultParagraphFont"> shall commence running on the date of the transfer. If a notice is provided after the date the property is transferred, the period to commence an action pursuant to § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-10"><span class="s2073006DefaultParagraphFont">55-16-10</span></a><span xml:space="preserve" class="s2073006DefaultParagraphFont"> commences running on the date the notice is provided. In no event may the period to commence an action to challenge a transfer under this section and § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-10"><span class="s2073006DefaultParagraphFont">55-16-10</span></a><span xml:space="preserve" class="s2073006DefaultParagraphFont"> exceed the period set forth in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=54-8A-9"><span class="s2073006DefaultParagraphFont">54-8A-9</span></a><span class="s2073006DefaultParagraphFont">.</span></p><p dir="ltr" class="s2073006Normal-000001"><span xml:space="preserve" class="s2073006000004"> </span></p></div><div><p dir="ltr" class="s2073006Normal-000001"><span class="s2073006DefaultParagraphFont">(5)    The exception contained in subdivision (1) of this section does not apply to any claim for forced heirship or legitime.</span></p><p dir="ltr" class="s2073006Normal-000001"><span class="s2073006DefaultParagraphFont">(6)    Subdivisions (2) to (4), inclusive, of this section apply to any transfer made after June 30, 2014.</span></p><p dir="ltr" class="s2073006Normal"><span xml:space="preserve" class="s2073006000004"> </span></p><p dir="ltr" class="s2073006Normal"><span class="s2073006SCL">Source:</span><span xml:space="preserve" class="s2073006SCL-000005"> SL 2005, ch 261, § 15; SL 2011, ch 212, § 17; SL 2013, ch 239, § 19; SL 2014, ch 226, § 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 55-16 - QUALIFIED DISPOSITIONS IN TRUST</title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073007Normal { 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.s2073007SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073007CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073007Normal-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.s2073007DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2073007Normal-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.s2073007Normal-000002 { margin-left: 1.14in; text-indent: -0.44in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } span.s2073007000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2073007SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073007SCL-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="s2073007Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=55-16-16"><span class="s2073007SENU">55-16-16</span></a><span xml:space="preserve" class="s2073007SENU">. </span><span class="s2073007CL">Avoidance of qualified disposition.</span></p><p dir="ltr" class="s2073007Normal-000000"><span class="s2073007DefaultParagraphFont">A qualified disposition is avoided only to the extent necessary to satisfy the transferor's debt to the creditor at whose instance the disposition had been avoided, together with such costs, including attorney's fees, as the court may allow. If any qualified disposition is avoided as provided in this section, then:</span></p><p dir="ltr" class="s2073007Normal-000001"><span class="s2073007DefaultParagraphFont">(1)    If the court is satisfied that a qualified person has not acted in bad faith in accepting or administering the property that is the subject of the qualified disposition:</span></p><p dir="ltr" class="s2073007Normal-000002"><span class="s2073007DefaultParagraphFont">(a)    Such qualified person has a first and paramount lien against the property that is the subject of the qualified disposition in an amount equal to the entire cost, including attorney's fees, properly incurred by such qualified person in the defense of the action or proceedings to avoid the qualified disposition. It is presumed that such qualified person did not act in bad faith merely by accepting such property; and</span></p><p dir="ltr" class="s2073007Normal-000002"><span class="s2073007DefaultParagraphFont">(b)    The qualified disposition is avoided subject to the proper fees, costs, preexisting rights, claims, and interests of such qualified person, and of any predecessor qualified person that has not acted in bad faith; and</span></p><p dir="ltr" class="s2073007Normal-000001"><span class="s2073007DefaultParagraphFont">(2)    If the court is satisfied that a beneficiary of a trust has not acted in bad faith, the avoidance of the qualified disposition is subject to the right of such beneficiary to retain any distribution made upon the exercise of a trust power or discretion vested in the qualified person or qualified persons of such trust, which power or discretion was properly exercised prior to the creditor's commencement of an action to avoid the qualified disposition. It is presumed that the beneficiary, including a beneficiary who is also a transferor of the trust, did not act in bad faith merely by creating the trust or by accepting a distribution made in accordance with the terms of the trust.</span></p><p dir="ltr" class="s2073007Normal"><span xml:space="preserve" class="s2073007000003"> </span></p><p dir="ltr" class="s2073007Normal"><span class="s2073007SCL">Source:</span><span xml:space="preserve" class="s2073007SCL-000004"> SL 2005, ch 261, § 16.</span></p></div></body></html>