South Dakota § 55-2-23 - Excluded fiduciaries and trustees--Reliance on tax information--Applicability.
Full text of South Dakota South Dakota Codified Laws § 55-2-23 — Excluded fiduciaries and trustees--Reliance on tax information--Applicability., with citation guidance and answers to common questions.
§ 55-2-23. Excluded fiduciaries and trustees--Reliance on tax information--Applicability.
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 any trustee who receives tax information from the settlor, the settlor's agents, a tax trust advisor, or other individuals regarding matters that have tax implications to the trust or trust beneficiaries, may rely, without liability, on tax information it receives in any of the above situations. By way of example, if a trustee holds in trust a limited liability company interest but does not manage the limited liability company, the trustee may rely, without limitation, on any tax information received from the manager of the limited liability company or its accountant or agents.
The tax information that a trustee may rely on in the above situations may include the following:
(1) The accuracy of any information reported on a tax return;
(2) A copy of a tax return provided by the tax return preparer or the taxpayer filing the return;
(3) The representation of another fiduciary or tax advisor who filed or prepared a tax return as to the amount of any item reported on that return;
(4) The settlor's representation regarding whether a gift or generation skipping transfer tax form has ever been filed, as well as how much of the respective exemptions have been utilized; or
(5) The direction from the grantor's or settlor's tax advisors based upon any contribution or distribution, or both, for the appropriate tax filings.
An entity, for purposes of this section, is defined as set out in subdivisions 47-34A-101(7) and 47-34A-101(13).
This section applies to any trust in existence on or created on or after July 1, 2012.
Source: SL 2012, ch 233, § 21; SL 2025, ch 196, § 7.
Source: official South Dakota text · Last verified 2026-08-27
Frequently Asked Questions About South Dakota § 55-2-23
What does South Dakota Codified Laws § 55-2-23 cover?
Section 55-2-23 ("Excluded fiduciaries and trustees--Reliance on tax information--Applicability.") is part of the South Dakota Codified Laws, the codified statutory law of South Dakota. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite South Dakota § 55-2-23?
A common citation format is "South Dakota Codified Laws § 55-2-23" (South Dakota). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of South Dakota law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Dakota official source linked on this page or consult a licensed South Dakota attorney.
How does South Dakota § 55-2-23 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Dakota can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in South Dakota.