The bill amends South Dakota's trust laws to clarify the roles and responsibilities of trust advisors, protectors, and fiduciaries. It updates key definitions, including "trust protector," "trust advisor," and "excluded fiduciary," and specifies that excluded fiduciaries are not liable for losses incurred from following trust advisor directions or for not acting without prior authorization. A new section is introduced that grants tax trust advisors the authority to direct trustees on tax-related matters, such as tax elections and returns. The amendments also outline the conditions under which trust advisors and tax trust advisors may serve as fiduciaries and the circumstances that exempt 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 provided by the company's manager or agents without limitation. It also amends section 55-3-24 to facilitate the modification or termination of irrevocable trusts, permitting such actions through judicial means or with the written consent of all beneficiaries, as long as the trust's continuation is not necessary for a material purpose. Upon termination, the trustee is required to distribute trust property according to the trustor's probable intention or as agreed by the beneficiaries, and a written notice of any modifications or terminations must be provided 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