55-3-39. When state law or jurisdiction provision valid, effective, and conclusive.
Except as expressly provided by the terms of a governing instrument or by a court order, a general law or a state jurisdiction provision stating that the laws of this state govern is valid, effective, and conclusive for the trust if all of the following are true:
(1)Some or all of the trust assets are deposited in this state or physical evidence of such assets is held in this state and the trust is being administered by a qualified person; in this subdivision, deposited in this state, includes being held in a checking account, time deposit, certificate of deposit, brokerage account, trust company fiduciary account, or other similar account or deposit that is located in this state including South Dakota investments;
(2)A trustee is a qualified person who is designated as a trustee under the governing instrument, a successor trusteeship, or designated by a court having jurisdiction over the trust; and
(3)The administration, for example, physically maintaining trust records in this state and preparing or arranging for the preparation of, on an exclusive basis or a nonexclusive basis, an income tax return that must be filed by the trust, occurs wholly or partly in this state.
The State of South Dakota and its courts have jurisdiction over a trust created in a foreign jurisdiction if the administration of the trust meets the three requirements set forth in this section.
Nothing in this section may be construed to be the exclusive means of providing a valid effective and conclusive state jurisdiction provision.
Source: SL 1998, ch 282, §20; SL 2004, ch 312, §6; SL 2010, ch 232, §3.
Structure South Dakota Codified Laws
Title 55 - Fiduciaries and Trusts
Chapter 03 - Express Trusts For Third Party Beneficiaries
Section 55-3-1 - Application of chapter.
Section 55-3-2 - Creation of trust--Mutual consent of trustor and trustee.
Section 55-3-3 - Appointing court or public officer as trustor.
Section 55-3-4 - Declaration of trust--Declarations of trustor to trustee before acceptance.
Section 55-3-5 - Trustee to follow declaration of trust--Modifications.
Section 55-3-6 - Trust irrevocable in absence of express contrary provisions.
Section 55-3-7 - Trustee's power as agent.
Section 55-3-10 - Degree of care and diligence used in execution of trusts.
Section 55-3-12 - Purchase by trustee of claims against trust property.
Section 55-3-13 - Expenses incurred by trustee in performance of trust--Reimbursement.
Section 55-3-14 - Compensation of trustee.
Section 55-3-15 - Implied trustee--No rights to compensation or repayment of expenses.
Section 55-3-16 - Vacation of office of trustee.
Section 55-3-17 - Discharge of trustee--Grounds.
Section 55-3-17.1 - Resignation of fiduciary.
Section 55-3-18 - Survivorship between cotrustees.
Section 55-3-20 - Removal of trustee by circuit court--Vacant trusteeship filled by court.
Section 55-3-20.1 - Grounds for removal of trustee.
Section 55-3-21 - Appointment of trustee by circuit court--Grounds.
Section 55-3-23 - Termination of trust.
Section 55-3-26 - Petition to modify terms of trust--Circumstances--Distribution of property.
Section 55-3-28 - Terms of trust may be reformed by court.
Section 55-3-29.1 - Defense of laches not available.
Section 55-3-29.2 - Statute of limitations defense not available.
Section 55-3-30 - Provisions not exclusive.
Section 55-3-39 - When state law or jurisdiction provision valid, effective, and conclusive.
Section 55-3-41 - Qualified person defined.
Section 55-3-42 - State jurisdiction provision defined.
Section 55-3-43 - South Dakota investments defined.
Section 55-3-44 - Trustor defined.
Section 55-3-47 - Cessation of trustee upon action of foreign court--Successor trustee.
Section 55-3-48 - South Dakota law governs administration of trust.