55-2-1. Trustee’s obligation of good faith. In all matters connected with his trust a trustee is bound to act in the highest good faith toward his beneficiary and may not obtain any advantage therein over the latter by the slightest misrepresentation, concealment, threat, or adverse pressure of any kind. Source: SDC 1939, §59.0106.
55-2-10. Measure of liability for unauthorized use or disposal of trust property–Intent to serve interest of beneficiary. A trustee who uses or disposes of the trust property in any manner not authorized by the trust but in good faith and with intent to serve the interest of the beneficiary is liable only to make good […]
55-2-11. Liability for acts of cotrustee. A trustee is responsible for the wrongful acts of a cotrustee to which he consented or which by his negligence he enabled the latter to commit, but for no others. Source: SDC 1939, §59.0116.
55-2-12. Liability and duties of successor trustee for agreements, contracts or actions of predecessor fiduciary. Unless otherwise provided in the trust agreement, a successor trustee: (1)Is not individually liable for actions or inactions of a predecessor fiduciary, including agreements, contracts accountings, records, distributions, investments, modifications, reformations, or other acts entered into by its predecessor fiduciary; […]
55-2-13. Notice to qualified beneficiaries of existence of trust–Written directions–Information to be provided to excluded fiduciaries–Liability limits of trustee–Variation of right of a beneficiary to be informed–Confidentiality of trust information. Notification to any qualified beneficiary under this section may be carried out personally, by mail, postage prepaid, addressed to the entity or individual’s last known […]
55-2-14. Duty to provide information regarding revocable trust and its administration. A trustee of a revocable trust: (1)Subject to subdivision 3 below, shall keep the settlor reasonably informed of the trust and its administration; (2)Unless otherwise provided in the trust instrument, does not have a duty to inform a trust beneficiary of the trust and […]
55-2-15. Trustee authorized to distribute income or principal from first trust may appoint all or part in favor of trustee of second trust–Restrictions–Power of appointment to beneficiary of second trust. Unless the terms of the governing instrument expressly provide otherwise, if a trustee has discretion under the terms of a governing instrument to make a […]
55-2-16. Action that may not be taken by restricted trustee may be taken by another unrestricted trustee. Any action that may not be taken by a trustee of the first trust by reason of the restrictions in subdivision 55-2-15(2) may instead be taken by any other trustee of the first trust who is not so […]
55-2-17. Conditions under which beneficiary has power to change trustees. For the purposes of §55-2-15, a beneficiary shall be considered to have the power to “change the trustees” if he or she can, alone or with others, name himself or herself as a trustee or can remove a trustee and replace that trustee with a […]
55-2-18. Exercise of power to distribute income or principal by written instrument–Notice to beneficiaries of first trust. The exercise of the power to distribute the income or principal of the trust under §55-2-15 shall be by an instrument in writing, signed and acknowledged by the trustee and filed with the records of the trust. The […]
55-2-19. Exercise of power to distribute income or principal considered exercise of power of appointment. The exercise of the power to distribute the income or principal of the trust under §55-2-15 shall be considered the exercise of a power of appointment (other than a power to appoint to the trustee, the trustee’s creditors, the trustee’s […]
55-2-2. Trustee not to use property for his own benefit–Profit of trustee from use of property, extent of liability. A trustee may not in any manner use or deal with the trust property for his own profit or for any other purpose unconnected with the trust. If he does so, he may, at the option […]
55-2-20. Impermissible use of power. The power under §55-2-15 may not be exercised to suspend the power to alienate trust property or extend the first trust beyond the permissible period of any rule against perpetuities applicable to the first trust. Source: SL 2007, ch 281, §6; SL 2011, ch 212, §9.
55-2-21. Trustee’s right to distribute income or principal in trust arising under law or terms of first trust not abridged. No provision of §§55-2-15 to 55-2-20, inclusive, may be construed to abridge the right of any trustee who has power to distribute income or principal in further trust which arises under statute, common law, or […]
55-2-22. Fiduciary duty to determine that substituted property is of equivalent value. Notwithstanding the terms of a trust instrument, if a settlor has a power to substitute property of equivalent value, a trustee has a fiduciary duty to determine that the substituted property is of equivalent value, prior to allowing the substitution. Source: SL 2009, […]
55-2-23. Reliance of excluded fiduciaries and trustees on tax information. An excluded fiduciary as defined in §55-1B-1 who receives tax information regarding an asset or entity owned by the trust, any trustee of a trust that holds an asset or entity owned by the trust but who does not manage the asset or entity, and […]
55-2-3. Transactions involving interest of trustee adverse to beneficiary prohibited–Exceptions. Neither a trustee nor any of his agents may take part in any transaction concerning the trust in which he or anyone for whom he acts as agent has an interest, present or contingent, adverse to that of his beneficiary, except as follows: (1)When the […]
55-2-4. Trustee’s influence not to be used for his advantage. A trustee may not use the influence which his position gives him to obtain any advantage from his beneficiary. Source: SDC 1939, §59.0109.
55-2-5. Trustee not to assume a trust adverse to the interest of beneficiary. No trustee so long as he remains in the trust may undertake another trust adverse in its nature to the interest of his beneficiary in the subject of the trust without the consent of the latter. Source: SDC 1939, §59.0110.
55-2-6. Adverse interest of trustee–Information to beneficiary–Removal of trustee. If a trustee acquires any interest or becomes charged with any duty adverse to the interest of his beneficiary in the subject of the trust, he must immediately inform the latter thereof and may be at once removed. Source: SDC 1939, §59.0111.
