S.D. Admin. R. 20:06:31:10

Current through Register Vol. 51, page 57, November 12, 2024

Section 20:06:31:10 - Trust agreements qualified under SDCL 58-14-16 - Permitted conditions

The following permitted conditions apply to trust agreements qualified under SDCL 58-14-16:

(1) The trust agreement may provide that the trustee may resign upon delivery of a written notice of resignation, effective not less than 90 days after receipt by the beneficiary and grantor of the notice and that the trustee may be removed by the grantor by delivery to the trustee and the beneficiary of a written notice of removal, effective not less than 90 days after receipt by the trustee and the beneficiary of the notice. Such a resignation or removal may not be effective until a successor trustee has been appointed and approved by the beneficiary and the grantor and all assets in the trust have been transferred to the new trustee;

(2) The grantor may have the full and unqualified right to vote any shares of stock in the trust account and to receive from time to time payments of any dividends or interest on any shares of stock or obligations included in the trust account. Any interest or dividends must be either forwarded promptly upon receipt to the grantor or deposited in a separate account established in the grantor's name;

(3) The trustee may be given authority to invest and may accept substitutions of any funds in the account, but no investment or substitution may be made without prior approval of the beneficiary, unless the trust agreement specifies categories of investments acceptable to the beneficiary and authorizes the trustee to invest funds and to accept substitutions which the trustee determines are at least equal in current fair market value to the assets withdrawn and that are consistent with the restrictions in subdivision 20:06:31:11(2);

(4) The trust agreement may provide that the beneficiary may, at any time, designate a party to which all or part of the trust assets are to be transferred. The transfer may be conditioned upon the trustee receiving, prior to or simultaneously with, other specified assets; and

(5) The trust agreement may provide that, upon termination of the trust account, all assets not previously withdrawn by the beneficiary shall, with written approval by the beneficiary, be delivered over to the grantor.

S.D. Admin. R. 20:06:31:10

22 SDR 52, effective 10/25/1995; 44 SDR 71, effective 10/23/2017

General Authority: SDCL 58-14-17.

Law Implemented: SDCL 58-14-16, 58-14-17, 58-14-20.