2002 Session Laws Chapter 205

CHAPTER 205

(SB 142)

Trust may be shareholder in a professional corporation.

ENTITLED, An Act to allow certain trusts to be shareholders in certain professional organizations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

Section 1. That chapter 47-11 be amended by adding thereto a NEW SECTION to read as follows:

Notwithstanding any other provisions of this chapter, a revocable trust may be a shareholder in a corporation or limited liability company organized under this chapter, for so long as the grantor of the revocable trust is living and is eligible to be a shareholder of a corporation organized under this chapter. After the death of the grantor, the shares owned by a revocable trust are subject to any divestiture and redemption provisions of this chapter as if the shares were directly owned by the grantor of the trust.

Section 2. That chapter 47-11A be amended by adding thereto a NEW SECTION to read as follows:

Section 3. That chapter 47-11B be amended by adding thereto a NEW SECTION to read as follows:

Section 4. That chapter 47-11C be amended by adding thereto a NEW SECTION to read as follows:

Section 5. That chapter 47-11D be amended by adding thereto a NEW SECTION to read as follows:

Section 6. That chapter 47-11E be amended by adding thereto a NEW SECTION to read as follows:

Section 7. That chapter 47-12 be amended by adding thereto a NEW SECTION to read as follows:

Section 8. That chapter 47-13 be amended by adding thereto a NEW SECTION to read as follows:

Section 9. That chapter 47-13A be amended by adding thereto a NEW SECTION to read as follows:

Section 10. That chapter 47-13B be amended by adding thereto a NEW SECTION to read as follows:

Section 11. That chapter 48-7A be amended by adding thereto a NEW SECTION to read as follows:

Notwithstanding any other provisions of § 48-7A-1004, a revocable trust may be a partner in a limited liability partnership organized under this chapter, for so long as the grantor of the revocable trust is living and is eligible to be a partner of a limited liability partnership organized under this chapter. After the death of the grantor, the partnership interest owned by a revocable trust are subject to any applicable divestiture and redemption provisions as if the partnership interest were directly owned by the grantor of the trust.

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