The bill amends South Dakota's trust laws to clarify the roles and responsibilities of fiduciaries, including trust advisors, trust protectors, and excluded fiduciaries. It introduces definitions for "trust protector" and "excluded fiduciary," and establishes the powers of tax trust advisors, allowing them to direct trustees on tax-related matters. Notably, excluded fiduciaries are not held liable for losses incurred from following trust advisor directions or for inaction when proper authorization is not obtained. The bill also outlines the conditions under which trust advisors may be considered fiduciaries and the circumstances that relieve them from fiduciary duties.

Additionally, the bill revises provisions regarding trustees' reliance on tax information when managing limited liability company interests, allowing trustees to depend on tax information from the company's manager or agents without limitation. It also amends section 55-3-24 to permit the modification or termination of irrevocable trusts through judicial action or with the written consent of all beneficiaries, provided the trust's continuation is not necessary for a material purpose. Upon termination, the trustee must distribute the trust property according to the trustor's probable intention or as agreed by the beneficiaries, and a written notice of any modification or termination must be given to all fiduciaries at least thirty days prior to the effective date.

Statutes affected:
Introduced, 01/12/2025: 55-1B-1, 55-1B-2, 55-1B-4, 55-1B-9, 55-2-15, 55-2-23, 55-3-24
Senate Commerce and Energy Engrossed, 01/23/2025: 55-1B-1, 55-1B-2, 55-1B-4, 55-1B-9, 55-2-15, 55-2-23, 55-3-24
House Engrossed, 03/04/2025: 55-1B-1, 55-1B-2, 55-1B-4, 55-1B-9, 55-2-15, 55-2-23, 55-3-24
Enrolled, 03/05/2025: 55-1B-1, 55-1B-2, 55-1B-4, 55-1B-9, 55-2-15, 55-2-23, 55-3-24
Enrolled, 03/03/2025: 55-1B-1, 55-1B-2, 55-1B-4, 55-1B-9, 55-2-15, 55-2-23, 55-3-24