55-15-8. Unitrust amount as net income of trust--Allocation of capital gains to trust income.
Following the conversion of an income trust to a total return unitrust, the trustee:
(1)Shall treat the unitrust amount as if it were net income of the trust for purposes of determining the amount available, from time to time, for distributions from the trust; and
(2)May allocate to trust income for each taxable year of the trust (or portions thereof) (i) net short-term capital gain described in I.R.C. section 1222(5) for such year (or portion thereof) but only to the extent that the amounts so allocated together with all other amounts allocate to trust income for such year (or portion thereof) does not exceed the unitrust amount for such year (or portion thereof); and (ii) net long-term capital gain described in I.R.C. section 1222(7) for such year (or portion thereof) but only to the extent that the amount so allocated together with all other amounts, including amounts described in clause (i) above, allocated to trust income for such year (or portion thereof) does not exceed the unitrust amount for such year (or portion thereof).
Source: SL 2002, ch 225, §8.
Structure South Dakota Codified Laws
Title 55 - Fiduciaries and Trusts
Chapter 15 - Total Return Unitrusts
Section 55-15-1 - Definitions.
Section 55-15-3 - Interested trustee's authority over actions enumerated in § 55-15-2--Conditions.
Section 55-15-4 - Trustee may petition court--Appointment of disinterested person.
Section 55-15-5 - Annual valuation of trust required.
Section 55-15-6 - Calculation of unitrust amount.
Section 55-15-9 - Administration of total return unitrust--Authority of trustee.
Section 55-15-10 - Distributions of principal not affected by conversion.
Section 55-15-12 - Applicability of chapter.
Section 55-15-13 - Trustee acting in good faith not liable--Remedy.
Section 55-15-14 - No duty to act created.
Section 55-15-15 - Chapter not applicable to charitable remainder unitrust.