There is a newer version of the South Dakota Codified Laws
2006 South Dakota Code - 55-13-13 — Charges against income and principal.
55-13-13. Charges against income and principal. (a) The following charges shall be made against income:
(1) Ordinary expenses incurred in
connection with the administration, management, or preservation of
the trust property, including regularly recurring taxes assessed
against any portion of the principal, water rates, premiums on
insurance taken upon the interests of the income beneficiary,
remainderman, or trustee, interest paid by the trustee, and
ordinary repairs;
(2) A reasonable allowance for
depreciation on property subject to depreciation under generally
accepted accounting principles, but no allowance shall be made for
depreciation of that portion of any real property used by a
beneficiary as a residence or for depreciation of any property held
by the trustee on July 1, 1984 for which the trustee is not then
making an allowance for depreciation;
(3) One-half of court costs, attorney's
fees, and other fees on periodic judicial accounting, unless the
court directs otherwise;
(4) Court costs, attorney's fees, and
other fees on other accountings or judicial proceedings if the
matter primarily concerns the income interest, unless the court
directs otherwise;
(5) One-half of the trustee's regular
compensation, whether based on a percentage of principal or income,
and all expenses reasonably incurred for current management of
principal and application of income;
(6) Any tax levied upon receipts defined
as income under this chapter or the trust instrument and payable by
the trustee.
(b) If charges against income are of
unusual amount, the trustee may by means of reserves or other
reasonable means charge them over a reasonable period of time and
withhold from distribution sufficient sums to regularize
distributions.
(c) The following charges shall be made
against principal:
(1) Trustee's compensation not chargeable
to income under subsections (a)(4) and (a)(5), special compensation
of trustees, expenses reasonably incurred in connection with
principal, court costs and attorney's fees primarily concerning
matters of principal, and trustee's compensation computed on
principal as an acceptance, distribution, or termination
fee;
(2) Charges not provided for in subsection
(a), including the cost of investing and reinvesting principal, the
payments on principal of an indebtedness (including a mortgage
amortized by periodic payments of principal), expenses for
preparation of property for rental or sale, and, unless the court
directs otherwise, expenses incurred in maintaining or defending
any action to construe the trust or protect it or the property or
assure the title of any trust property;
(3) extraordinary repairs or expenses
incurred in making a capital improvement to principal, including
special assessments, but, a trustee may establish an allowance for
depreciation out of income to the extent permitted by subsection
(a)(2) and by § 55-13-8;
(4) Any tax levied upon profit, gain, or
other receipts allocated to principal notwithstanding denomination
of the tax as an income tax by the taxing authority;
(5) If an estate or inheritance tax is
levied in respect of a trust in which both an income beneficiary
and a remainderman have an interest, any amount apportioned to the
trust, including interest and penalties, even though the income
beneficiary also has rights in the principal.
(d) Regularly recurring charges payable
from income shall be apportioned to the same extent and in the same
manner that income is apportioned under § 55-13-4.
Source: SL 1984, ch 323, § 13.
Source: SL 1984, ch 323, § 13.
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