Congratulations to Partner Corey Denevan and the firm’s client, Trident Trust Company, for a recent South Dakota Supreme Court victory handed down on June 26, 2019. Denevan represented the trustee in a dispute regarding direct payments of child support from the trust to the ex-husband of a beneficiary. During the beneficiary and ex-husband’s divorce proceeding, a California family court ordered the trustee to make direct payments of child support. Denevan won at the South Dakota circuit court level, arguing that South Dakota law recognizes the validity of spendthrift clauses and their prohibition upon compulsory direct payments to a beneficiary’s creditors, like her ex-husband. The Supreme Court agreed, following appeal by the beneficiary’s ex-husband, rejecting his argument that the California family court order was entitled to full faith and credit despite the trust’s spendthrift provision. The opinion can be reviewed in full at the following link: https://ujs.sd.gov/uploads/sc/opinions/28424f6gygv9.pdf
The Supreme Court opinion was a solid victory not only for our client, but also for the South Dakota trust industry. The decision is an unequivocal endorsement of the strength of spendthrift clauses under South Dakota law and the creditor protection available to beneficiaries of South Dakota trusts.
To learn more about Corey’s practice and the Trust & Estate section of Boyce Law Firm, LLP go to https://boycelaw.com/practice-areas/trust-administration-2/. Boyce Law Firm, LLP has highly qualified attorneys with experience representing fiduciaries and beneficiaries in all aspects of trust administration.