S.D. Codified Laws § 55-1-26

Current through the 2024 Legislative Session

Section 55-1-26 - Judicial foreclosure of beneficial interests, powers of appointment, and reserved powers prohibited-Creditors may not reach powers of appointment or remainder interests

Regardless of whether or not a trust contains a spendthrift provision:

(1) No beneficial interest, power of appointment, or reserved power in a trust may be judicially foreclosed;

(2) No creditor may reach a power of appointment or a remainder interest at the trust level. The creditor shall wait until the funds are distributed before the creditor may reach the funds; and

(3) No power of appointment is property or an interest in property.

For purposes of this section, power of appointment is held by a person to whom a power has been given, not the settlor.

SDCL 55-1-26

SL 2007, ch 280, §3; SL 2009, ch 252, §3; SL 2016, ch 231, §12.

Amended by S.L. 2016, ch. 231,s. 12, eff. 7/1/2016.