Section 55-1-37 – Application of spendthrift provision.
55-1-37. Application of spendthrift provision. A spendthrift provision applies to both distribution interests and remainder interests. A spendthrift provision is a material provision of a trust. Source: SL 2007, ch 280, §14; SL 2008, ch 257, §5.
Section 55-1-38 – Classification of distribution interest.
55-1-38. Classification of distribution interest. A distribution interest can be classified in three ways: (1)As a mandatory interest, which is a distribution interest, in which the timing of any distribution must occur within one year from the date the right to the distribution arises, and the trustee has no discretion in determining whether a distribution […]
Section 55-1-21.8 – Distribution of property upon termination of purpose of trust.
55-1-21.8. Distribution of property upon termination of purpose of trust. Upon termination of a purpose trust, the trustee shall distribute any remaining trust property as directed in the governing instrument. Only in the event that the governing instrument is silent shall the trustee, upon termination of a purpose trust, distribute any remaining trust property as […]
Section 55-1-21.9 – Filings, reports, accounting, separation of funds, appointment, and registration of purpose trust not required–Exceptions.
55-1-21.9. Filings, reports, accounting, separation of funds, appointment, and registration of purpose trust not required–Exceptions. Except as may be demanded by an enforcer under §55-1-21.4, ordered by the court or required by the governing instrument, no filings, reports, periodic accounting, separate maintenance of funds, appointment, or registration of a purpose trust are required. Source: SL […]
Section 55-1-21.10 – Trustee may not use principal and income other than for trust’s purposes.
55-1-21.10. Trustee may not use principal and income other than for trust’s purposes. Except as expressly provided otherwise in the trust instrument, no portion of the principal or income may be converted to the use of the trustee or to any use other than for the trust’s purposes or the benefit of a covered animal. […]
Section 55-1-22 – Hybrid purpose trusts valid.
55-1-22. Hybrid purpose trusts valid. A hybrid purpose trust which meets the description of a purpose trust in §§55-1-20 to 55-1-21.10, inclusive, also includes one or more beneficiaries is valid and may be performed. Source: SL 2006, ch 247, §3; SL 2018, ch 275, §14.
Section 55-1-22.1 – Separate shares for beneficiaries and purposes to be maintained in hybrid purpose trust.
55-1-22.1. Separate shares for beneficiaries and purposes to be maintained in hybrid purpose trust. In a hybrid purpose trust when the interests of the beneficiaries and purposes are concurrent, the trustee shall maintain not less than two separate shares, one for the beneficiaries; and a second for the purposes, and the trustee may be liable […]
Section 55-1-22.2 – Beneficiaries’ share of a hybrid purpose trust.
55-1-22.2. Beneficiaries’ share of a hybrid purpose trust. The beneficiaries’ share of a hybrid purpose trust is governed by §§43-5-8 and 43-6-7. Source: SL 2018, ch 275, §16.
Section 55-1-22.3 – Spendthrift provision in hybrid purpose trust–Qualified dispositions in trust.
55-1-22.3. Spendthrift provision in hybrid purpose trust–Qualified dispositions in trust. A hybrid purpose trust may: (1)Contain a spendthrift provision; and (2)Also qualify as a trust described in §55-16-2. Source: SL 2018, ch 275, §17.
Section 55-1-22.4 – Application of §§ 55-1-21 to 55-1-21.9 to hybrid purpose trust–Exceptions.
55-1-22.4. Application of §§55-1-21 to 55-1-21.9 to hybrid purpose trust–Exceptions. The provisions of §§55-1-21 to 55-1-21.9, inclusive, apply to a hybrid purpose trust except that: (1)Under §55-1-21.1, except as otherwise provided in the governing instrument, a trust as described in subdivision 55-1-21(1) terminates when no living animal is covered by the trust unless the trust […]