SD SB100

Trustees may reimburse trustors for personal income taxes owed on grantor trusts under federal tax code sections 671-678, unless the trust instrument expressly prohibits such reimbursement; life insurance policy values cannot be used for these reimbursements

Trustees with discretionary distribution authority may appoint trust assets to a second trust with a separate governing instrument, subject to restrictions protecting beneficiary interests and preserving tax-qualified trust status

Gifts from revocable trusts and discretionary distributions from irrevocable trusts are not treated as advancements against a beneficiary's share unless documented in writing by the trustor, trustee, or beneficiary

Attorney-client privilege applies to communications between attorneys and fiduciaries, and attorneys representing fiduciaries owe no duties to trust beneficiaries unless expressly agreed otherwise in writing

Fraudulent transfer claims against self-settled trusts must be filed within two years of transfer (or six months after discovery for pre-existing creditors), with creditors bearing the burden of proof by clear and convincing evidence