A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a decedent or donor transfers an interest in such a trust to a trustee, § 55-13A-401 or 55-13A-415 applies to a receipt from the trust.

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Terms Used In South Dakota Codified Laws 55-13A-402

  • Decedent: A deceased person.
  • Donor: The person who makes a gift.
  • Trustee: A person or institution holding and administering property in trust.

Source: SL 2007, ch 282, § 12.