Section 55-1-36 - Conditions under which creditors of settlor beneficiary not prevented from satisfyingclaims from settlor's interest in trust. - South-dakota Statutes

State Codes and Statutes

Statutes > South-dakota > Title-55 > Chapter-01 > Statute-55-1-36

55-1-36. Conditions under which creditors of settlor beneficiary not prevented from satisfying claims from settlor's interest in trust. If a settlor is also a beneficiary of the trust, a provision restraining the voluntary or involuntary transfer of the settlor's beneficial interest does not prevent the settlor's creditors from satisfying claims from the settlor's interest in the trust estate, unless the transfer specifically references and is qualified as a transfer under chapter 55-16. However, a settlor's creditors may not satisfy claims from either assets of the trust because of the existence of a discretionary power granted to the trustee by the terms of the trust instrument creating the trust, or any other provisions of law, to pay directly to the taxing authorities or to reimburse the settlor for any tax on trust income or principal which is payable by the settlor under the law imposing such tax; or reimbursements made to the settlor or direct tax payments made to a taxing authority for the settlor's benefit for any tax or trust income or principal which is payable by the trustor under the law imposing such tax.

Source: SL 2007, ch 280, § 13.

State Codes and Statutes

Statutes > South-dakota > Title-55 > Chapter-01 > Statute-55-1-36

55-1-36. Conditions under which creditors of settlor beneficiary not prevented from satisfying claims from settlor's interest in trust. If a settlor is also a beneficiary of the trust, a provision restraining the voluntary or involuntary transfer of the settlor's beneficial interest does not prevent the settlor's creditors from satisfying claims from the settlor's interest in the trust estate, unless the transfer specifically references and is qualified as a transfer under chapter 55-16. However, a settlor's creditors may not satisfy claims from either assets of the trust because of the existence of a discretionary power granted to the trustee by the terms of the trust instrument creating the trust, or any other provisions of law, to pay directly to the taxing authorities or to reimburse the settlor for any tax on trust income or principal which is payable by the settlor under the law imposing such tax; or reimbursements made to the settlor or direct tax payments made to a taxing authority for the settlor's benefit for any tax or trust income or principal which is payable by the trustor under the law imposing such tax.

Source: SL 2007, ch 280, § 13.

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > South-dakota > Title-55 > Chapter-01 > Statute-55-1-36

55-1-36. Conditions under which creditors of settlor beneficiary not prevented from satisfying claims from settlor's interest in trust. If a settlor is also a beneficiary of the trust, a provision restraining the voluntary or involuntary transfer of the settlor's beneficial interest does not prevent the settlor's creditors from satisfying claims from the settlor's interest in the trust estate, unless the transfer specifically references and is qualified as a transfer under chapter 55-16. However, a settlor's creditors may not satisfy claims from either assets of the trust because of the existence of a discretionary power granted to the trustee by the terms of the trust instrument creating the trust, or any other provisions of law, to pay directly to the taxing authorities or to reimburse the settlor for any tax on trust income or principal which is payable by the settlor under the law imposing such tax; or reimbursements made to the settlor or direct tax payments made to a taxing authority for the settlor's benefit for any tax or trust income or principal which is payable by the trustor under the law imposing such tax.

Source: SL 2007, ch 280, § 13.