A trustee who has incurred personal liability for a tort committed in the administration of the trust is entitled to exoneration therefor from the trust property if he has not discharged the claim, or to be reimbursed therefor out of trust funds if he has paid the claim, if:

(1) the tort was a common incident of the kind of business activity in which the trustee was properly engaged for the trust, or

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Terms Used In South Dakota Codified Laws 55-4-22

  • Property: includes property, real and personal. See South Dakota Codified Laws 2-14-2
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • Trustee: A person or institution holding and administering property in trust.
  • Trustee: includes trustees, a corporate as well as a natural person and a successor or substitute trustee. See South Dakota Codified Laws 55-4-1

(2) although the tort was not a common incident of such activity, neither the trustee nor any officer or employee of the trustee was guilty of personal fault in incurring the liability.

Source: SL 1943, ch 308, § 13; SDC Supp 1960, § 59.0513 (1).