State Codes and Statutes

Statutes > South-dakota > Title-55 > Chapter-05 > Statute-55-5-9

55-5-9. Review of assets upon acceptance of trusteeship--Basis for disposition or retention of assets. The trustee shall, within a reasonable time after the acceptance of the trusteeship, review trust assets and make and implement decisions concerning the retention and disposition of original pre-existing investments in order to conform to the provisions of this section. The trustee's decision to retain or dispose of an asset may properly be influenced by the asset's special relationship or value to the purposes of the trust or to some or all of the beneficiaries, consistent with the trustee's duty of impartiality.
If a trust owns an interest in a closely held entity, and the trust agreement provides that the trustee has no duty to inquire or review the activities of the closely held entity, no trustee is liable to a beneficiary to the extent that the trustee acted in reliance on the provisions of the trust or court order.
For purposes of this section, the term, closely held entity, means any entity in which the following persons in aggregate own at least twenty percent of the entity:
(1) The settlor;
(2) The settlor's grandparents or their descendants;
(3) The settlor's spouse; or
(4) Any trust created by anyone of the aforementioned persons.

Source: SL 1995, ch 271, § 9; SL 2009, ch 252, § 32.