2011 South Dakota Code
Title 55 FIDUCIARIES AND TRUSTS
Chapter 01. Classification And Creation Of Trusts
§55-1-36 Satisfaction of claims of settlor's creditors from trust estate if settlor is beneficiary.

55-1-36. Satisfaction of claims of settlor's creditors from trust estate if settlor is beneficiary. If a settlor is also a beneficiary of the trust, and the transfer is a qualified transfer under chapter 55-16, the provisions of §§ 55-1-24 to 55-1-43, inclusive, also apply. Conversely, if the settlor is a beneficiary of the trust and the transfer is not a qualified transfer under chapter 55-16, a provision restraining the voluntary or involuntary transfer of the settlor's beneficial interest does not prevent the settlor's creditors from satisfying claims from the settlor's interest in the trust estate. However, regardless of whether the transfer is a qualified transfer under chapter 55-16, a settlor's creditors may not satisfy claims from either assets of the trust because of the existence of a discretionary power granted to the trustee by the terms of the trust instrument creating the trust, or any other provisions of law, to pay directly to the taxing authorities or to reimburse the settlor for any tax on trust income or principal which is payable by the settlor under the law imposing such tax; or reimbursements made to the settlor or direct tax payments made to a taxing authority for the settlor's benefit for any tax or trust income or principal which is payable by the trustor under the law imposing such tax.

Source: SL 2007, ch 280, § 13; SL 2011, ch 212, § 35.