SB 100 South Dakota Senate · 2026 Regular Session

revise provisions related to trusts.

SB 100 revises South Dakota trust laws to clarify when trustees can reimburse trustors (the creators of trusts) for taxes they owe under federal law (26 U.S.C. §§ 671-678), which treats them as owners of the trust. Specifically, it allows trustees (not the trustor or related parties) to pay taxes directly to authorities or reimburse the trustor, but prohibits using life insurance policy cash values for this purpose. The bill also adds rules about trustees transferring assets between trusts while ensuring such actions don’t disqualify trusts from tax deductions. It applies only to trusts created on or after July 1, 2026, or moved to South Dakota after that date.

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Feb 2026

Senate Passage

Mar 2026

House Passage

Feb 2026

Signed into Law

Mar 2026

Introduced Jan 20, 2026 Signed Mar 10, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Enrolled · 6 edits · Mar 1, 2026

MODERATE

This bill adds new provisions to South Dakota law regarding how trusts can handle income tax liabilities for trustors (people who create trusts). It allows trustees to pay taxes directly on behalf of trustors in certain situations, while protecting the trust from being disqualified for tax purposes. The bill also clarifies rules about appointing assets between trusts and defines who counts as a 'trustor' for these purposes.

Scope change

The bill expands South Dakota's trust law by adding a new section to Chapter 55-1 and amending Section 55-2-15 to address tax reimbursement powers and trust asset appointments.

REQUIREMENT

New Section 1 added to Chapter 55-1 allows trustees to pay income taxes directly for trustors when the trustor is treated as the owner of trust assets under federal tax law, provided the trust terms don't prohibit this reimbursement.

New Section 1 prohibits using life insurance policy cash values or policy loans to reimburse trustors for taxes, preventing potential tax disqualification.

Section 55-2-15 was amended to clarify that trustees can appoint assets from one trust to another trust, with specific rules about beneficiary eligibility and trustee restrictions.

DEFINITION

New Section 1 clarifies that tax reimbursement powers don't make the trustor a beneficiary of the trust for state tax purposes.

TIMELINE

New Section 1 applies only to trusts created on or after July 1, 2026, or trusts moving their principal place of administration to South Dakota on or after that date.

ENFORCEMENT

New Section 1 states that trustees, trust advisors, or trust protectors are not liable for decisions to reimburse or not reimburse trustors for taxes, and this doesn't constitute a breach of fiduciary duty.

Floor votes · Senate Feb 4, 2026 · House Feb 26, 2026

How they voted

34–0

Passed · 1 other

Total votes 35

Feb 4, 2026

D Democratic3

3 Yea

100% Yea

R Republican32

31 Yea 1

96% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 10, 2026

Signed into law

Signed by the Governor on 2026-03-10 S.J. 514

executive

Mar 3, 2026

Upper · Passed

Signed by the Speaker H.J. 493

upper

Mar 2, 2026

Upper · Passed

Signed by the President S.J. 434

upper

Feb 26, 2026

Upper · Passed

House of Representatives Do Pass , Passed, YEAS 64, NAYS 2 H.J. 459

upper

Feb 25, 2026

Upper · Passed

Judiciary Do Pass , Passed, YEAS 11, NAYS 1 H.J. 29

upper

Feb 9, 2026

Committee

Referred to House Judiciary H.J. 262

upper

Feb 4, 2026

Upper · Passed

Senate Do Pass , Passed, YEAS 34, NAYS 0 S.J. 182

upper

Feb 3, 2026

Upper · Passed

Certified uncontested, placed on consent , Passed, S.J. 7

upper

Feb 3, 2026

Upper · Passed

Commerce and Energy Do Pass , Passed, YEAS 8, NAYS 0 S.J. 7

upper

Jan 20, 2026

Introduced

First read in Senate and referred to Senate Commerce and Energy S.J. 66

upper

4 primary · 0 co-sponsors