2006 South Dakota Code - 55-13-7 — Increase in value of certain trust investments distributable as income.

             (1)      A zero coupon bond;

             (2)      An annuity contract before annuitization;

             (3)      A life insurance contract before the death of the insured;

             (4)      An interest in a common trust fund (as defined under § 584 of the Internal Revenue Code) (26 U.S.C. § 584);

             (5)      An interest in a partnership, as defined in § 7701 of the Internal Revenue Code (26 U.S.C. § 7701); or

             (6)      Any other obligation for the payment of money that is payable at a future time in accordance with a fixed, variable, or discretionary schedule of appreciation in excess of the price at which it was issued.

             (b)      For purposes of this section, the increase in value of an investment described in subsection (a) is available for distribution only if the trustee receives cash on account of the investment.

             (c)      The increase in value of the obligations described in subsection (a) is distributable to the beneficiary who was the income beneficiary at the time of the increase from the first principal cash available or, if none is available, when realized by sale, redemption, or other disposition. If unrealized increase is distributed as income but out of principal, the principal shall be reimbursed from the increase when realized.

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Source: SL 1984, ch 323, § 7; SL 1995, ch 272, § 1; SL 2002, ch 100, § 25.