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 § 55-1-40

Title 55FIDUCIARIES AND TRUSTS

Ch. 55-1CLASSIFICATION AND CREATION OF TRUSTS

This text of South Dakota § 55-1-40 (Language resulting in classification of distribution interest.) is published on Counsel Stack Legal Research, covering South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.D. Codified Laws § 55-1-40 (2026).

Text

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.