55-1-28. Interest of beneficiary or others not reachable by creditors.
No creditor may reach an interest of a beneficiary or of any other person on the grounds that the beneficiary or other person holds, either alone or in conjunction with another person, either or both of the following:
(1)An unconditional or conditional power to remove a trustee; or
(2)An unconditional or conditional power to replace a trustee.
The powers to remove or replace a trustee are personal to the power holder. No court may order, direct, or otherwise compel a power holder to directly or indirectly exercise the power to remove or replace a trustee for the purpose of directly or indirectly satisfying, either in whole or in part, any claim or judgment against the power holder or a beneficiary.
The powers to remove or replace a trustee, whether exercisable alone or in conjunction with another person, are not a property interest.
No creditor may reach an interest of a beneficiary on the grounds that the beneficiary is also a trustee or a co-trustee and no court may foreclose against such an interest. No court may order, direct, or otherwise compel a distribution because the beneficiary is then serving as a trustee or co-trustee.
Source: SL 2007, ch 280, §5; SL 2009, ch 252, §4; SL 2013, ch 239, §21.
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.