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 terms such as "trust protector" and "tax trust advisor," and outlines the powers of a tax trust advisor, which must be exercised in the best interests of the trust. The bill also states that excluded fiduciaries are not liable for losses incurred while following directions from trust advisors, as long as they act within their authority and avoid gross negligence or willful misconduct. Additionally, it allows trustees to appoint assets to a second trust under specific conditions, ensuring that beneficiaries of the first trust are also beneficiaries of the second.

Furthermore, the bill revises provisions related to 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 the process for modifying or terminating irrevocable trusts, permitting such actions through judicial means 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, unless waived.

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