Declaration of Trust — South Dakota Non-UTC
State-specific requirements for creating a Declaration of Trust in South Dakota.Create yours now →
Certificate of Trust · At a glance
South Dakota · summary of the record on file
South Dakota Codified Laws (SDCL) Title 55 (Fiduciaries and Trusts), Chapters 55-1 through 55-4; SDCL § 55-4-51 (certificate of trust); SDCL Title 47, Chapter 14A (South Dakota Business Trust Act)Citation text is shown as currently recorded. No source URL is on file for this state.Source URL missing · unverified- Notary: The certificate of trust must be acknowledged or verified under oath before a notary public or other official authorized to administer oaths.
- Witnesses: South Dakota law does not require witnesses for trust execution.
- Recording: For real property transactions, the certificate may be recorded in the office of the register of deeds.
- Source URL: https://sdlegislature.gov/Statutes/55-4-51
- Last verified: 2026-09-17
- Legal review: Not performed
Governing Statute
South Dakota Codified Laws (SDCL) Title 55 (Fiduciaries and Trusts), Chapters 55-1 through 55-4; SDCL § 55-4-51 (certificate of trust); SDCL Title 47, Chapter 14A (South Dakota Business Trust Act)
Execution Requirements
The trust instrument must be signed by the settlor. South Dakota law does not require witnesses for trust execution. The certificate of trust must be acknowledged or verified under oath before a notary public or other official authorized to administer oaths. For real property transactions, the certificate may be recorded in the office of the register of deeds.
Business Trust Treatment
South Dakota has a comprehensive statutory framework for business trusts under SDCL Title 47, Chapter 14A (South Dakota Business Trust Act). Business trusts are treated as separate legal entities with beneficial owners, trustees, and transferable interests. The Act provides for formation, governance, liability of beneficial owners and trustees, mergers, conversions, and dissolutions. Foreign business trusts must register under Chapter 14B.
Favorable Trust Laws
South Dakota is a premier trust jurisdiction with no state income tax, no state estate tax, and no inheritance tax. The state abolished the rule against perpetuities, allowing true perpetual dynasty trusts. It has strong asset protection through Third Party Discretionary Support Trusts (SDCL 55-1-24 through 55-1-43). Directed trusts are authorized under SDCL 55-1B. The state permits trust decanting, trust protectors, and has a Governor's Trust Task Force that meets annually to update trust legislation. Self-settled asset protection trusts are recognized with favorable creditor limitation periods.
Unique Factors
South Dakota is one of the leading trust jurisdictions in the United States. It was among the first states to allow perpetual trusts in the 1980s. The Governor's Trust Task Force meets annually to refine trust laws, keeping South Dakota at the forefront of trust legislation. The state offers true perpetuity, strong directed trust statutes, and comprehensive decanting provisions. South Dakota chartered trust companies benefit from favorable regulatory treatment.
Certification of Trust in South Dakota
Under SDCL § 55-4-51, a certificate of trust must be signed by a trustee, settlor, grantor, or trustor and contain: (1) a statement that the trust exists, the current name of the trust, any previous name if changed, and the date the trust instrument or will was executed; (2) the name of the settlor, grantor, trustor, testator, or testatrix; (3) the name of each original trustee and the name and address of each trustee currently empowered to act; (4) the applicable powers of the trustee selected by the signer, including powers to sell, convey, pledge, mortgage, lease, or transfer title to property, and the number of trustees required to act; (5) a statement that the trust is irrevocable or, if revocable, that it has not been revoked; (6) a statement whether the trust is supervised by a court and any court restrictions on the trustee; (7) if applicable, a description of any property to be conveyed; (8) a statement that the trust has not been modified or amended in a manner causing the representations to be incorrect. The signature must be acknowledged or verified under oath before a notary public. Need not contain dispositive terms.
Already have a trust? You may also need a Certificate of Trust for South Dakota to prove its existence to banks and institutions.
How a Declaration of Trust works in South Dakota
A declaration of trust is the written instrument that creates a trust. The settlor states an intent to hold property for named beneficiaries and appoints a trustee to manage it. Under South Dakota Codified Laws Title 55, Chapters 55-1 through 55-4, the instrument must be signed by the settlor. South Dakota does not require witnesses for trust execution. The certificate of trust must be acknowledged or verified under oath before a notary public or other official authorized to administer oaths. For real property transactions, the certificate may be recorded in the office of the register of deeds. The trust becomes active when it is funded: real property moves by a new deed to the trustee, and bank and brokerage accounts are retitled in the name of the trust or trustee. A successor trustee named in the document takes over if the acting trustee steps down, becomes incapacitated, or dies.
Frequently asked questions
Does a South Dakota declaration of trust have to be notarized or witnessed?
Under South Dakota law, the trust instrument must be signed by the settlor. Witnesses are not required for trust execution, and notarization is not required for the trust instrument itself. However, the certificate of trust must be acknowledged or verified under oath before a notary public or other official authorized to administer oaths. Notarization may also be required for recording purposes, such as real property transactions or a certificate of trust.
Can a South Dakota trust continue forever?
Yes. South Dakota abolished the rule against perpetuities, allowing true perpetual dynasty trusts. This means a trust can last indefinitely, making the state one of the leading trust jurisdictions for multi-generational wealth transfers. The state also permits trust decanting, trust protectors, and directed trusts. These rules come from SDCL Title 55, which sets the ground rules for how long a trust may last and when it can protect trust property.
What goes in a certificate of trust under SDCL § 55-4-51?
The statute lists the contents: that the trust exists, the current name of the trust, any previous name if changed, and the date the trust instrument or will was executed; the name of the settlor, grantor, trustor, testator, or testatrix; the name of each original trustee and the name and address of each trustee currently empowered to act; the applicable powers of the trustee selected by the signer, including powers to sell, convey, pledge, mortgage, lease, or transfer title to property, and the number of trustees required to act; a
How does South Dakota treat business trusts?
Business trusts are treated as separate legal entities, not as ordinary family trusts. South Dakota has a comprehensive statutory framework for business trusts under SDCL Title 47, Chapter 14A (South Dakota Business Trust Act). Business trusts are treated as separate legal entities with beneficial owners, trustees, and transferable interests. The Act provides for formation, governance, liability of beneficial owners and trustees, mergers, conversions, and dissolutions. Foreign business trusts must register under Chapter 14B.
Common mistakes
Common issues include assuming South Dakota law requires witnesses or notarization for the trust instrument itself (it requires neither, though recording-related steps such as deeds or certificates of trust may call for an acknowledgment), and leaving the trust unfunded so that property never actually moves into it through a new deed or retitled accounts. Another frequent mix-up is treating a business trust like a family trust: South Dakota requires foreign business trusts to register with the Secretary of State and the business trust framework under Chapter 14A governs formation, governance, and dissolution separately from a declaration of trust created under the trust code. People also assume asset-protection provisions apply on their own; South Dakota's Third Party Discretionary Support Trusts and self-settled asset protection trusts require specific statutory conditions.
South Dakota notes
South Dakota operates under SDCL Title 55 (Fiduciaries and Trusts), Chapters 55-1 through 55-4, with the certificate of trust at SDCL § 55-4-51 and the business trust framework at SDCL Title 47, Chapter 14A. The state levies no state income tax, no state estate tax, and no inheritance tax, making it one of the most favorable trust situs in the country. South Dakota abolished the rule against perpetuities, allowing true perpetual dynasty trusts. The state offers strong asset protection through Third Party Discretionary Support Trusts (SDCL 55-1-24 through 55-1-43), directed trusts under SDCL 55-1B, and comprehensive decanting provisions. The Governor's Trust Task Force meets annually to refine trust legislation. South Dakota chartered trust companies benefit from favorable regulatory treatment. The certificate of trust must be signed by a trustee, settlor, grantor, or trustor and acknowledged or verified under oath before a notary public.