# S.D. Codified Laws § 55-2-3: Transactions involving interest of trustee adverse to beneficiary prohibited--Exceptions

> South Dakota · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-3

## Section

- **Citation:** S.D. Codified Laws § 55-2-3
- **Heading:** Transactions involving interest of trustee adverse to beneficiary prohibited--Exceptions
- **Jurisdiction:** South Dakota
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** SD Code / Title 55 / Chapter 2 / Section 55-2-3

## Text

Neither a trustee nor any of his agents may take part in any transaction concerning the trust in which he or anyone for whom he acts as agent has an interest, present or contingent, adverse to that of his beneficiary, except as follows:

(1) When the beneficiary does have the capacity to contract and, with a full knowledge of the motives of the trustee and of all other facts concerning the transaction which might affect his own decision and without the use of any influence on the part of the trustee, permits the trustee to do so;

(2) When the beneficiary does not have the capacity to contract but the circuit court, upon the like information of the facts, grants the like permission;

(3) When some of the beneficiaries have the capacity to contract and some do not have it and the former grant permission for themselves and the circuit court for the latter in the manner above prescribed; or

(4) When the instrument creating the trust expressly grants permission to the trustee to buy, sell or lease property for the trust from or to the trust.

Source: SDC 1939, § 59.0108; SL 1981, ch 354, § 1.

## Nearby sections

- [S.D. Codified Laws § 55-2-1 Trustee's obligation of good faith](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-1.md)
- [S.D. Codified Laws § 55-2-2 Trustee not to use property for his own benefit--Profit of trustee from use of property, extent of liability](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-2.md)
- [S.D. Codified Laws § 55-2-3 Transactions involving interest of trustee adverse to beneficiary prohibited--Exceptions](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-3.md)
- [S.D. Codified Laws § 55-2-4 Trustee's influence not to be used for his advantage](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-4.md)
- [S.D. Codified Laws § 55-2-5 Trustee not to assume a trust adverse to the interest of beneficiary](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-5.md)
- [S.D. Codified Laws § 55-2-6 Adverse interest of trustee--Information to beneficiary--Removal of trustee](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-6.md)
- [S.D. Codified Laws § 55-2-7 Fraud against beneficiary of trust](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-7.md)
- [S.D. Codified Laws § 55-2-8 Presumption against trustee](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-8.md)
- [S.D. Codified Laws § 55-2-9 Liability of trustee mingling trust property with his own](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-9.md)
- [S.D. Codified Laws § 55-2-10 Measure of liability for unauthorized use or disposal of trust property--Intent to serve interest of beneficiary](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-10.md)
- [S.D. Codified Laws § 55-2-11 Liability for acts of cotrustee](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-11.md)
- [S.D. Codified Laws § 55-2-12 Liability and duties of successor trustee for agreements, contracts or actions of predecessor fiduciary](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-12.md)
- [S.D. Codified Laws § 55-2-13 Notice to qualified beneficiaries of existence of trust--Written directions--Variation of right of a beneficiary to be informed--Confidentiality of trust information](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-13.md)
- [S.D. Codified Laws § 55-2-13.1 Information to be provided to excluded fiduciaries--Liability limits of trustee](https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-13.1.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_SD_T55_C2_S55-2-3. Check the current official text before relying on it. Not legal advice.