South Dakota Codified Laws 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:
Terms Used In South Dakota Codified Laws 55-1-40
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Trustee: A person or institution holding and administering property in trust.
(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.