The bill introduces significant amendments to South Dakota's trust laws, particularly concerning the roles and definitions of trust advisors, protectors, and custodial accounts. A notable addition is the term "tax trust advisor," defined as a fiduciary with specific tax-related powers. The bill clarifies that trust advisors can encompass investment, distribution, and tax advisors, and it stipulates that excluded fiduciaries are not liable for losses incurred while following the directions of trust advisors, as long as they operate within their authority. Furthermore, it permits the simultaneous appointment of an individual as both a trust advisor and a trust protector unless the governing instrument states otherwise.

Additionally, the bill enhances the powers of tax trust advisors, allowing them to direct trustees on tax matters, including tax elections and returns. It also provides guidelines for trustees regarding the appointment of assets to a second trust, ensuring that such actions align with the first trust's purposes. The bill allows beneficiaries of the first trust to appoint trust property to themselves or others, regardless of their beneficiary status, and clarifies the process for modifying irrevocable trusts with written consent from all beneficiaries. Overall, these amendments aim to improve trust management, clarify fiduciary responsibilities, and ensure that beneficiaries are well-informed about trust modifications and their implications.

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