2006 South Dakota Code - 55-1-19 — Satisfaction of creditor\'s claim when trustor is also a beneficiary of spendthrift trust--Exceptions.

     55-1-19.   Satisfaction of creditor's claim when trustor is also a beneficiary of spendthrift trust- -Exceptions. If the trustor is also a beneficiary of the trust, a provision restraining the voluntary or involuntary transfer of the trustor's beneficial interest does not prevent the trustor's creditors from satisfying claims from the trustor's interest in the trust estate, unless the transfer specifically references and is qualified as a transfer under chapter 55-16. However, a trustor's creditors may not satisfy claims from federal income tax reimbursements made to the trustor or direct tax payments made by an independent trustee for the trustor's benefit from an irrevocable trust taxed for federal income tax purposes pursuant to the grantor trust rules of the Internal Revenue Code Sections 671 to 679, inclusive, as of January 1, 2005.

Source: SL 1995, ch 270, § 4; SL 2005, ch 260, § 1; SL 2005, ch 261, § 17.