55-1-20. Trusts for noncharitable purposes.
Subdivisions 55-1-4(2) and 55-1-5(2) notwithstanding, a purpose trust may be performed pursuant to this section and §§55-1-21 to 55-1-22.6, inclusive, if the trust is for a lawful noncharitable purpose or purposes. Any property may form a part or all of the trust estate, including some, all, or an interest in some or all of the property that is the subject or purpose of a purpose trust. A governing instrument of such a trust shall be liberally construed in favor of its validity to presume against the merely precatory or honorary nature of the disposition and to carry out the trustor's intent. If necessary, extrinsic evidence is admissible to determine the trustor's intent. Neither the common law rule against perpetuities, nor any rule restricting the accumulation of income, nor any common law rule limiting the duration of noncharitable purpose trusts is in force in this state.
Source: SL 2006, ch 247, §1; SL 2008, ch 257, §1; SL 2011, ch 212, §40; SL 2018, ch 275, §2.
Structure South Dakota Codified Laws
Title 55 - Fiduciaries and Trusts
Chapter 01 - Classification And Creation Of Trusts
Section 55-1-1 - Purposes for which trust may be created.
Section 55-1-2 - Trusts classified.
Section 55-1-3 - Express trust defined.
Section 55-1-4 - Creation of express trust--Words or acts of trustor.
Section 55-1-5 - Express trust created as to trustee--Words and acts of trustee.
Section 55-1-5.1 - Express trust need not be for exclusive benefit of beneficiaries.
Section 55-1-6 - Implied trust--Definition--Creation.
Section 55-1-7 - Wrongful detention creates implied trust.
Section 55-1-8 - Implied trust resulting from fraud, accident or wrongful act.
Section 55-1-9 - Implied trust created by transfer of property in violation of trust.
Section 55-1-10 - Transfer of real property to one for money paid by another--Trust presumed.
Section 55-1-11 - Implied trust--Declaration by court of equity.
Section 55-1-12 - Trustor, trustee, beneficiary, power of appointment, and person defined.
Section 55-1-13 - Voluntary trustee--Assumption of relationship.
Section 55-1-14 - Interest in existing trust--Transfer by operation of law or written instrument.
Section 55-1-15 - Certain trusts not terminated upon trustor's death.
Section 55-1-20 - Trusts for noncharitable purposes.
Section 55-1-21.1 - Termination of trust for care of animal.
Section 55-1-21.4 - Enforcement of purpose of trust by enforcer.
Section 55-1-21.5 - Removal of enforcer.
Section 55-1-21.6 - Discretion of trustee of purpose trust.
Section 55-1-21.8 - Distribution of property upon termination of purpose of trust.
Section 55-1-21.10 - Trustee may not use principal and income other than for trust's purposes.
Section 55-1-22 - Hybrid purpose trusts valid.
Section 55-1-22.2 - Beneficiaries' share of a hybrid purpose trust.
Section 55-1-22.3 - Spendthrift provision in hybrid purpose trust--Qualified dispositions in trust.
Section 55-1-22.4 - Application of §§ 55-1-21 to 55-1-21.9 to hybrid purpose trust--Exceptions.
Section 55-1-22.5 - Discretion of trustee of hybrid purpose trust.
Section 55-1-22.6 - Enforcer of hybrid purpose trust.
Section 55-1-24 - Definitions applicable to §§ 55-1-24 to 55-1-45.
Section 55-1-24.1 - Improper motive.
Section 55-1-24.2 - Withdrawal power.
Section 55-1-27 - Certain remainder interests not property interests.
Section 55-1-28 - Interest of beneficiary or others not reachable by creditors.
Section 55-1-29 - Trust property not subject to personal obligations of trustee.
Section 55-1-30 - Distribution and remainder interests not relevant to division of marital property.
Section 55-1-32 - Factors which are not dominion and control over trust.
Section 55-1-37 - Application of spendthrift provision.
Section 55-1-38 - Classification of distribution interest.
Section 55-1-38.1 - Classification of interest as support interest.
Section 55-1-39 - Bifurcation of trust.
Section 55-1-40 - Language resulting in classification of distribution interest.
Section 55-1-41 - Effect of spendthrift provision.
Section 55-1-42 - Mandatory or support interests.
Section 55-1-43 - Discretionary interests.
Section 55-1-45 - Limitation of action for fraudulent transfer of settlor's assets.
Section 55-1-46 - No contest clause defined--Enforceability.
Section 55-1-48 - Circumstances under which no contest clause unenforceable.
Section 55-1-49 - Contest regarding settlor's signature.
Section 55-1-50 - Attorneys fees and costs.
Section 55-1-51 - Applicability of §§ 55-1-46 to 55-1-50.
Section 55-1-52 - Interest on general pecuniary devises.
Section 55-1-54 - Arbitration.
Section 55-1-55 - Trust enforceable although not funded or without res, corpus, or assets.
Section 55-1-56 - Registration of trust in court at principal place of administration.
Section 55-1-57 - Contents of registration statement.