South Dakota § 55-1-40 Language resulting in classification of distribution interest.

South Dakota Statutes

§ 55-1-40 — Language resulting in classification of distribution interest.

South Dakota·Title 55 FIDUCIARIES AND TRUSTS·Ch. 55-1 CLASSIFICATION AND CREATION OF TRUSTS

Although not the exclusive means to create a distribution interest, absent clear and convincing evidence to the contrary, the following language by itself results in the following classification of distribution interest:

(1)Mandatory interest:

(a)"All income shall be distributed to (named beneficiary)"; or (b) "One hundred thousand dollars a year shall be distributed to (named beneficiary)";

(2)Support interest:

(a)"The trustee shall make distributions for health, education, maintenance, and support";

(3)Discretionary interest:

(a)"The trustee, may, in the trustee's sole and absolute discretion make distributions for health, education, maintenance, and support";

(b)"The trustee, in the trustee's sole and absolute discretion, shall make distributions for healt

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Although not the exclusive means to create a distribution interest, absent clear and convincing evidence to the contrary, the following language by itself results in the following classification of distribution interest: (1) Mandatory interest: (a) "All income shall be distributed to (named beneficiary)"; or (b) "One hundred thousand dollars a year shall be distributed to (named beneficiary)"; (2) Support interest: (a) "The trustee shall make distributions for health, education, maintenance, and support"; (3) Discretionary interest: (a) "The trustee, may, in the trustee's sole and absolute discretion make distributions for health, education, maintenance, and support"; (b) "The trustee, in the trustee's sole and absolute discretion, shall make distributions for health, education, maintenance, and support"; (c) "The trustee may make distributions for health, education, maintenance, and support"; (d) "The trustee shall make distributions for health, education, maintenance, and support. The trustees may exclude any of the beneficiaries or may make unequal distributions among them"; (e) "The trustee may make distributions for health, education, maintenance, support, comfort, and general welfare.

South Dakota § 55-1-40 (Language resulting in classification of distribution interest.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.