Bill > SB100

This bill makes several changes to South Dakota's trust laws, including allowing trustees, under certain conditions and with specific limitations, to pay a trustor's personal income tax liability directly to the taxing authority or reimburse the trustor for those taxes, provided the trust is not a life insurance policy with cash value or loans secured by it, and this action does not negatively impact marital or charitable tax deductions; it also permits trustees to distribute trust assets to a separate "second trust" for the benefit of the same beneficiaries, with specific rules to prevent abuse, especially when a trustee is also a beneficiary or can be replaced by a beneficiary; it clarifies that property distributed from a revocable trust to a beneficiary is not considered an "advancement" (a prepayment of a future inheritance) unless explicitly stated in writing, and similarly for discretionary distributions from irrevocable trusts; it also addresses the liability of attorneys representing fiduciaries, stating that an attorney's duty is generally only to the fiduciary and not to other interested parties, and communications between the attorney and fiduciary are protected by attorney-client privilege; furthermore, it modifies the time limits for creditors to bring claims related to fraudulent asset transfers into trusts; and finally, it clarifies that "special spousal property" in a South Dakota special spousal trust refers to community property, which retains its character even if transferred from another jurisdiction.

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https://sdlegislature.gov/#/Session/Bill/26763