revise provisions related to trusts.

Summary

The bill adds a rule that, unless a trust’s terms say otherwise, a trustee who isn’t the trustor or a related party may directly pay or reimburse a trustor’s personal income tax when the trustor is treated as the owner of the trust for tax purposes. It also changes the existing trust‑distribution law so a trustee of one trust can move income or principal to a second trust, with safeguards to protect beneficiaries and preserve tax deductions. The changes apply to trusts created or moved to South Dakota on or after July 1, 2026.

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