Section 55-1-40 – Language resulting in classification of distribution interest.
55-1-40. Language resulting in classification of distribution interest. Although not the exclusive means to create a distribution interest, absent clear and convincing evidence to the contrary, the following language by itself results in the following classification of distribution interest: (1)Mandatory interest: (a)”All income shall be distributed to (named beneficiary)”; or (b)”One hundred thousand dollars a […]
Section 55-1-41 – Effect of spendthrift provision.
55-1-41. Effect of spendthrift provision. If the trust contains a spendthrift provision, no creditor may reach present or future mandatory distributions from the trust at the trust level. Moreover, no court may order a trustee to distribute past due mandatory distributions directly to a creditor. Source: SL 2007, ch 280, §18; SL 2009, ch 252, […]
Section 55-1-29 – Trust property not subject to personal obligations of trustee.
55-1-29. Trust property not subject to personal obligations of trustee. Trust property is not subject to the personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. Source: SL 2007, ch 280, §6.
Section 55-1-30 – Distribution and remainder interests not relevant to division of marital property.
55-1-30. Distribution and remainder interests not relevant to division of marital property. Neither a distribution interest nor a remainder interest are relevant in the equitable division of marital property. Source: SL 2007, ch 280, §7; SL 2008, ch 257, §4.
Section 55-1-31 – Resources of settlor’s spouse to be considered in making distribution from support trust–Other beneficiary’s resources need not be considered.
55-1-31. Resources of settlor’s spouse to be considered in making distribution from support trust–Other beneficiary’s resources need not be considered. Unless otherwise provided in the trust, if the settlor’s spouse is named as beneficiary, the settlor’s spouse is still living, and the trust is classified as a support trust, then the trustee shall consider the […]
Section 55-1-32 – Factors which are not dominion and control over trust.
55-1-32. Factors which are not dominion and control over trust. In the event that a party challenges a settlor or a beneficiary’s influence over a trust, none of the following factors, alone or in combination, may be considered dominion and control over a trust: (1)The settlor or a beneficiary serving as a trustee or a […]
Section 55-1-33 – Factors which are insufficient evidence that settlor controls or is alter ego of trustee.
55-1-33. Factors which are insufficient evidence that settlor controls or is alter ego of trustee. Absent clear and convincing evidence, no settlor of an irrevocable trust may be deemed to be the alter ego of a trustee. The following factors by themselves or in combination are not sufficient evidence for a court to conclude that […]
Section 55-1-35 – Trust declaration that beneficiary’s interest subject to spendthrift trust–Payment of beneficiary expenses.
55-1-35. Trust declaration that beneficiary’s interest subject to spendthrift trust–Payment of beneficiary expenses. A declaration in a trust that the interest of a beneficiary shall be held subject to a spendthrift trust is sufficient to restrain voluntary or involuntary alienation of a beneficial interest by a beneficiary to the maximum extent provided by law. Regardless […]
Section 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 pursuant to 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 […]
Section 55-1-36.1 – Effect on creditor claims of trustee discretionary powers to pay taxes or make reimbursements for taxes.
55-1-36.1. Effect on creditor claims of trustee discretionary powers to pay taxes or make reimbursements for taxes. Regardless of whether a disposition is a qualified disposition pursuant to chapter 55-16, where a trustee is granted a discretionary power by the terms of the trust instrument, or any provision of law, to pay directly to any […]