Except as provided in §§ 55-13-9 and 55-13-10, if the principal consists of property subject to depletion, including leaseholds, patents, copyrights, royalty rights, and rights to receive payments on a contract for deferred compensation, receipts from the property, not in excess of five percent per year of its inventory value, are income, and the balance is principal.

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Terms Used In South Dakota Codified Laws 55-13-11

  • Contract: A legal written agreement that becomes binding when signed.
  • Inventory value: means the cost of property purchased by the trustee and the market value of other property at the time it became subject to the trust, but in the case of a testamentary trust the trustee may use any value finally determined for the purposes of an estate or inheritance tax. See South Dakota Codified Laws 55-13-1
  • Property: includes property, real and personal. See South Dakota Codified Laws 2-14-2

Source: SL 1984, ch 323, § 11.