1. Intent: The grantor must indicate through words or actions their intention to create a trust.
2. Subject, Purpose, and Beneficiary: The grantor must indicate the subject, purpose, and beneficiary of the trust.
3. In Writing: If the trust concerns real property, it must be evidenced in writing.^[1]

Amending/Revoking – The terms of a trust must expressly state that the grantor is empowered to revoke or modify the trust. Otherwise, the trust is considered irrevocable under state law.^[3]

Bond Requirement – If the administration of the trust falls under the supervision of the circuit court, then the trustee shall be required to put forward a bond as determined by the court, unless the terms of the trust instrument waive this requirement.^[4]

Certification of Trust – Instead of furnishing a copy of the trust to a person who is not a beneficiary, the person may provide them with a certificate of trust stating the date that the trust was executed, the identities of the grantor and trustee, and other details.^[5]

Co-Trustees – Three or more co-trustees may act by majority decision, unless the terms of the trust instrument dictate otherwise. A pair of co-trustees must act by unanimous decision.^[6]

Contesting a Trust – An action to contest a trust must be commenced within one year of the grantor’s death, within 60 days of having received notice from the trustee, or upon notice of entry of an order of adjudication, whichever occurs first.^[7]

Costs Related to the Trust – The trustee has a duty to incur “only reasonable and appropriate costs” in making investment decisions.^[8]

Jurisdiction – South Dakota has jurisdiction over a trust created in another state if there is a qualified trustee, some or all of the assets are located in South Dakota, and some part of the administration of the trust also occurs in South Dakota.^[9]

Oral Trusts – Oral trusts are recognized under South Dakota state law. However, a written instrument is only explicitly required for trusts in real property.^[1]

Pet Trusts – A trust for the care of one or more designated animals is valid under South Dakota law.^[10]

Signing Requirements – South Dakota state law does not require that a living trust be signed in order to be valid.

Spendthrift Provision – If the trust contains a spendthrift provision, creditors may not reach present or future mandatory distributions from the trust.^[11]

Trustee’s Compensation – If the terms of the trust do not specify the trustee’s compensation, the trustee is otherwise entitled to reasonable compensation for the performance of their services.^[12]

Trustee’s Duties – The trustee has a duty to prudently invest and manage trust assets as part of an overall investment strategy incorporating risk and return objectives that are reasonably suited to the trust.^[13]

Trustee’s Powers – The trustee’s powers include the ability to collect and hold trust property,^[14] receive additional trust assets,^[15] and invest and reinvest those assets in any property.^[16]