There is a newer version of the South Dakota Codified Laws
2006 South Dakota Code - 55-15-6 — Calculation of unitrust amount.
55-15-6. Calculation of unitrust amount. The unitrust amount shall be determined as follows:
(1) For the first three accounting periods
of the trust, the unitrust amount for a current valuation year of
the trust shall be three percent, or such higher percentage
specified by the terms of the governing instrument or by the
election of the trustee, the disinterested person, or the court, of
the net fair market value of the assets held in the trust on the
first business day of the current valuation year;
(2) Beginning with the fourth accounting
period of the trust, the unitrust amount for a current valuation
year of the trust shall be three percent, or such higher percentage
specified by the terms of the governing instrument or by the
election of the trustee, the disinterested person, or the court, of
the average of the net fair market value of the assets held in the
trust on the first business day of the current valuation year and
the net fair market value of the assets held in the trust on the
first business day of each prior valuation year, as defined in
subdivision 55-15-1(10);
(3) The percentage that may be elected by
the trustee, the disinterested person, or the court in determining
the unitrust amount shall be a reasonable current return from the
trust, taking into account the intentions of the trustor of the
trust as expressed in the governing instrument, the needs of the
beneficiaries, general economic conditions, projected current
earnings and appreciation for the trust, and projected inflation
and its impact on the trust. However, such election by the trustee,
the disinterested person, or the court in determining the unitrust
amount shall be three percent or greater;
(4) The unitrust amount for the current
valuation year shall be proportionately reduced for any
distributions, in whole or in part, other than distributions of the
unitrust amount, and for any payments of expenses, including debts,
disbursements and taxes, from the trust within a current valuation
year that the trustee determines to be material and substantial,
and shall be proportionately increased for the receipt, other than
a receipt that represents a return on investment, of any additional
property into the trust within a current valuation
year;
(5) In the case of a short accounting
period, the trustee shall prorate the unitrust amount on a daily
basis;
(6) If the net fair market value of an
asset held in the trust has been incorrectly determined either in a
current valuation year or in a prior valuation year, the unitrust
amount shall be increased in the case of an undervaluation, or be
decreased in the case of an overvaluation, by an amount equal to
the difference between the unitrust amount determined based on the
correct valuation of the asset and the unitrust amount originally
determined;
(7) In determining the net fair market
value of the assets held in trust, the determination may not
include the value of any residential property or any tangible
personal property that, as of the first business day of the current
valuation year, one or more income beneficiaries of the trust have
or had the right to occupy, or have or had the right to possess or
control, other than in a capacity as trustee, and instead the right
of occupancy or the right of possession or control shall be deemed
to be the unitrust amount with respect to the residential property
or the tangible personal property; or any asset specifically given
to a beneficiary under the terms of the trust and the return on
investment on that asset, which return on investment shall be
distributed to the beneficiary.
Source: SL 2002, ch 225, § 6; SL 2004, ch 312, § 7; SL 2005, ch 260, § 9.
Source: SL 2002, ch 225, § 6; SL 2004, ch 312, § 7; SL 2005, ch 260, § 9.
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