South Dakota Certification of Trust

CERTIFICATION OF TRUST

(Pursuant to South Dakota Codified Laws § 55-4-51 et seq.)

STATE OF SOUTH DAKOTA

COUNTY OF [________________________________]

ARTICLE I — TRUST IDENTIFICATION

The undersigned Trustee(s), being duly sworn, hereby certify under oath, pursuant to South Dakota Codified Laws § 55-4-51, the following facts regarding the trust identified herein:

1.1 Trust Name:
[________________________________]

1.2 Date of Trust Execution:
[__/__/____]

1.3 Trust Instrument Type:

☐ Inter Vivos (Living) Trust
☐ Testamentary Trust
☐ Irrevocable Trust
☐ Dynasty Trust (Perpetual Duration under SDCL § 43-5-8)
☐ Domestic Asset Protection Trust (SDCL § 55-16)
☐ Directed Trust (SDCL § 55-1B)
☐ Special Spousal Property Trust (SDCL § 55-17)
☐ Other: [________________________________]

1.4 Jurisdiction and Governing Law:
This trust is governed by the laws of the State of South Dakota. The situs of the trust is the State of South Dakota.

1.5 Trust Tax Identification Number (EIN):
[________________________________]

ARTICLE II — SETTLOR/GRANTOR IDENTIFICATION

2.1 Identity of Settlor(s)/Grantor(s):

2.2 Settlor Status:

☐ Settlor is currently living
☐ Settlor is deceased (Date of Death: [__/__/____])
☐ Joint Settlors — both currently living
☐ Joint Settlors — one or more deceased

ARTICLE III — TRUSTEE IDENTIFICATION AND POWERS

3.1 Currently Acting Trustee(s):

3.2 Type of Trustee:

☐ Individual Trustee
☐ Corporate/Institutional Trustee (South Dakota-chartered trust company)
☐ Co-Trustees
☐ Administrative Trustee (under Directed Trust — SDCL § 55-1B)
☐ Distribution Advisor (SDCL § 55-1B-11)
☐ Investment Advisor (SDCL § 55-1B-10)
☐ Trust Protector (SDCL § 55-1B-6)

3.3 Co-Trustee Authority:

☐ All Co-Trustees must act unanimously
☐ A majority of Co-Trustees may act
☐ Any single Co-Trustee may act independently
☐ Co-Trustee authority is divided per the trust instrument as follows:
[________________________________]

3.4 Trustee Powers Relevant to the Current Transaction:

The Trustee(s) identified above possess(es), among others, the following powers as granted by the trust instrument and as authorized by South Dakota law:

☐ Power to buy, sell, exchange, and convey real property
☐ Power to buy, sell, exchange, and convey personal property
☐ Power to manage, lease, and improve real property
☐ Power to borrow money and encumber trust assets
☐ Power to open, maintain, and close financial accounts
☐ Power to invest and reinvest trust assets
☐ Power to execute deeds, contracts, and other instruments
☐ Power to employ agents, attorneys, and advisors
☐ Power to make distributions to beneficiaries
☐ Power to deal with digital assets
☐ Power to establish and operate business entities
☐ Power to engage in trust decanting (SDCL § 55-2-15)
☐ Power to exercise trust protector authority (SDCL § 55-1B-6)
☐ Other powers: [________________________________]

3.5 Limitations on Trustee Powers:

☐ There are no limitations on the Trustee's powers beyond those imposed by law
☐ The following limitations apply: [________________________________]
☐ Court-imposed limitations exist (describe): [________________________________]

ARTICLE IV — TRUST PROPERTY PROVISIONS

4.1 Trust Property:

The trust identified herein holds or is authorized to hold various types of property, including but not limited to:

☐ Real property located in South Dakota
☐ Real property located outside South Dakota
☐ Bank and financial accounts
☐ Investment securities and brokerage accounts
☐ Business interests (LLCs, partnerships, corporations)
☐ Life insurance policies
☐ Personal property
☐ Digital assets
☐ Other: [________________________________]

4.2 Manner of Holding Title:

Title to trust property is held in the following manner:
[________________________________], as Trustee(s) of the [________________________________] Trust, dated [__/__/____]

4.3 Real Property Description (if applicable):

[________________________________]
[________________________________]
[________________________________]
[________________________________]

ARTICLE V — REVOCABILITY STATUS

5.1 Trust Revocability:

☐ The trust is REVOCABLE. The following person(s) hold the power to revoke:
[________________________________]

☐ The trust is IRREVOCABLE.

☐ The trust is irrevocable and constitutes a Domestic Asset Protection Trust under SDCL § 55-16.

☐ The trust is irrevocable and constitutes a Dynasty Trust with perpetual duration under SDCL § 43-5-8 (Rule Against Perpetuities abolished).

5.2 Amendment Powers:

☐ The trust may be amended by: [________________________________]
☐ The trust may not be amended
☐ The trust may be modified by the Trust Protector under SDCL § 55-1B-6

5.3 Current Status Confirmation:

The undersigned Trustee(s) hereby certify that, as of the date of this Certification:

(a) The trust has NOT been revoked;
(b) The trust has NOT been modified or amended in any manner that would cause the representations contained in this Certification to be incorrect; and
(c) The trust remains in full force and effect.

ARTICLE VI — SUCCESSOR TRUSTEE INFORMATION

6.1 Successor Trustee Designation:

In the event the currently acting Trustee(s) cease to serve, the successor Trustee(s) designated by the trust instrument are:

First Successor Trustee:
Name: [________________________________]
Address: [________________________________]

Second Successor Trustee:
Name: [________________________________]
Address: [________________________________]

6.2 Method of Successor Trustee Appointment:

☐ Named in the trust instrument
☐ Appointed by the Trust Protector (SDCL § 55-1B-6)
☐ Appointed by majority of qualified beneficiaries
☐ Appointed by court order
☐ Other mechanism: [________________________________]

ARTICLE VII — SOUTH DAKOTA STATUTORY DISCLOSURES

7.1 Dynasty Trust Disclosure (SDCL § 43-5-8):

☐ This trust is established with perpetual duration. South Dakota abolished the Rule Against Perpetuities effective July 1, 1983, permitting trusts to continue indefinitely without a required termination date.

☐ Not applicable — this trust has a stated termination date of [__/__/____].

7.2 Domestic Asset Protection Trust Disclosure (SDCL § 55-16):

☐ This trust qualifies as a Domestic Asset Protection Trust under SDCL § 55-16. The trust has a "qualified person" as defined in SDCL § 55-16-3, which is a South Dakota resident individual or a trust company with its principal place of administration in South Dakota that meets the requirements of SDCL §§ 55-3-39 and 55-3-41. The qualified person maintains or arranges for custody of trust property in South Dakota, maintains trust records, prepares or arranges for tax returns, or otherwise materially participates in trust administration.

☐ Not applicable.

7.3 Directed Trust Disclosure (SDCL § 55-1B):

☐ This trust is a directed trust. The roles and responsibilities of fiduciaries are divided as follows:

• Administrative Trustee: [________________________________]
• Investment Advisor: [________________________________]
• Distribution Advisor: [________________________________]
• Trust Protector: [________________________________]

Under SDCL § 55-1B-2, a directed trustee (administrative trustee) acting as an "excluded fiduciary" is NOT liable for any loss resulting from compliance with a direction of a trust advisor, including any loss arising from the trust advisor's breach of fiduciary duty or from acting beyond the trust advisor's scope of authority.

☐ Not applicable.

7.4 Quiet Trust Provisions (SDCL § 55-2-13):

☐ The trust instrument contains provisions restricting the disclosure of trust information to beneficiaries pursuant to SDCL § 55-2-13 (quiet trust provisions).

☐ Not applicable.

7.5 No State Income Tax:

The undersigned acknowledges that South Dakota imposes no state income tax, no state capital gains tax, and no state dividend or interest tax on trust income, which may be a factor in the selection of South Dakota as the trust situs.

7.6 Dispositive Terms Not Disclosed:

Pursuant to SDCL § 55-4-51, this Certification of Trust does not contain the dispositive terms of the trust. The dispositive provisions (i.e., who receives trust property and in what amounts or proportions) need not be disclosed and are not set forth herein. The recipient of this Certification is not entitled to demand a copy of the trust instrument except as provided by law.

7.7 Conclusive Proof:

Pursuant to SDCL § 55-4-51.1, this Certification of Trust, until amended or revoked, or until the full trust instrument or will is recorded, filed, or presented, constitutes conclusive proof as to the matters contained herein. Any party may rely upon the continued effectiveness of this Certification, except a party who has actual knowledge of facts to the contrary.

7.8 Third-Party Reliance and Liability Protection:

Pursuant to SDCL §§ 55-4-53 and 55-4-54, a person who acts in good faith reliance upon this Certification of Trust without knowledge that the representations contained herein are incorrect shall not be liable to any person for so acting and may assume without inquiry the existence of the facts contained in this Certification.

ARTICLE VIII — ADDITIONAL CERTIFICATIONS

The undersigned Trustee(s) further certify:

8.1. The statements contained in this Certification of Trust are true and correct.

8.2. There are no other provisions in the trust instrument or amendments thereto that limit the powers of the Trustee(s) to sell, convey, pledge, mortgage, lease, or transfer title to interests in real or personal property, except as expressly stated in this Certification.

8.3. The trust has not been the subject of any judicial proceeding that would affect the validity of this Certification, except: [________________________________]

8.4. The Trustee(s) signing this Certification is/are duly authorized and currently serving in such capacity.

8.5. ☐ The trust is supervised by a court. Court: [________________________________]
☐ The trust is NOT supervised by any court.

ARTICLE IX — EXECUTION AND NOTARIZATION

IN WITNESS WHEREOF, the undersigned Trustee(s) have executed this Certification of Trust under oath, as required by South Dakota Codified Laws § 55-4-51, on this [____] day of [________________________________], 20[____].

TRUSTEE SIGNATURE(S):

Signature: ___________________________________________
Printed Name: [________________________________]
Title/Capacity: Trustee
Date: [__/__/____]

Signature: ___________________________________________
Printed Name: [________________________________]
Title/Capacity: Trustee
Date: [__/__/____]

Signature: ___________________________________________
Printed Name: [________________________________]
Title/Capacity: Trustee
Date: [__/__/____]

NOTARIZATION

STATE OF SOUTH DAKOTA
COUNTY OF [________________________________]

Before me, the undersigned Notary Public, on this [____] day of [________________________________], 20[____], personally appeared:

[________________________________]
[________________________________]

known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

The above-named person(s), being by me duly sworn, did depose and state that the contents of the foregoing Certification of Trust are true and correct to the best of his/her/their knowledge and belief.

WITNESS my hand and official seal.

Signature of Notary: ___________________________________________
Printed Name of Notary: [________________________________]
My Commission Expires: [__/__/____]
Commission Number: [________________________________]

[NOTARY SEAL]

SOUTH DAKOTA STATE-SPECIFIC NOTES

1. Dynasty Trust Jurisdiction: South Dakota was the first state to abolish the Rule Against Perpetuities (1983), allowing trusts to last in perpetuity. This enables multi-generational wealth transfer free of estate taxes at each generational level.

2. No State Income Tax: South Dakota does not impose state income tax, capital gains tax, or dividend/interest tax on trust income, making it one of the most tax-efficient trust situs options in the nation.

3. Asset Protection: Under SDCL § 55-16, South Dakota permits Domestic Asset Protection Trusts (DAPTs) where the settlor can be a discretionary beneficiary while shielding assets from the settlor's creditors after a two-year statute of limitations period.

4. Directed Trusts: SDCL § 55-1B provides the most comprehensive directed trust framework in the nation, allowing complete bifurcation of fiduciary responsibilities among administrative trustees, investment advisors, distribution advisors, and trust protectors, each with clearly delineated liability.

5. Privacy/Quiet Trusts: Under SDCL § 55-2-13, South Dakota permits "quiet trusts" where the grantor can restrict beneficiaries from receiving information about the trust's existence, terms, or assets.

6. Trust Protector Statute: SDCL § 55-1B-6 codifies broad trust protector powers, including the power to modify trust terms, change situs, appoint or remove trustees, add or remove beneficiaries, and terminate the trust.

7. Trust Decanting: SDCL § 55-2-15 permits the trustee to distribute trust property from an existing trust into a new trust with modified terms, offering significant flexibility in trust administration.

8. Special Spousal Property Trust: SDCL § 55-17 allows community property treatment for assets of married couples who establish trusts in South Dakota, potentially providing a step-up in basis at the first spouse's death.

9. Recording Requirements: When this certification involves real property, it must be recorded in the office of the Register of Deeds in the county where the property is located, in compliance with SDCL § 43-28-23.

This Certification of Trust is prepared in accordance with South Dakota Codified Laws § 55-4-51 et seq. (§§ 55-4-51, 55-4-51.1, 55-4-53, 55-4-54, 55-4-55). It does not contain the dispositive provisions of the trust instrument. This document is not a substitute for legal advice.