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§ 55-1-40 Language resulting in classification of distribution interest.

SD Codified L § 55-1-40 (2019) (N/A)
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55-1-40. Language resulting in classification of distribution interest. 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.Source: SL 2007, ch 280, § 17; SL 2008, ch 257, § 7.

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§ 55-1-41 Effect of spendthrift provision.