The South Dakota Probate Process: Step-by-Step

Assess the Estate — What Needs Probate?

• Joint tenancy (JTWROS): Passes to surviving joint tenant automatically — no probate.
• Beneficiary-designated accounts: IRA, 401(k), life insurance, POD/TOD accounts — pass directly to named beneficiaries, no probate.
• Revocable living trust assets: Pass according to the trust document — no probate.
• Assets in the decedent's name alone: Require small estate affidavit (personal property under $50,000) or informal probate.
• Real estate in the decedent's name alone: Always requires informal probate and a Personal Representative's Deed — regardless of value.

Choose the Right Procedure

• Small Estate Affidavit (§ 29A-3-1201): Personal property under $50,000 gross value; 30-day wait from date of death; present sworn affidavit directly to the institution. No court. No Letters. Cannot be used for real estate.
• Informal Probate (§ 29A-3-301): File with the probate registrar at the Circuit Court in the county where the decedent was domiciled. Registrar issues Letters without a hearing. Required whenever there is real estate or personal property over $50,000.
• Formal Probate (§ 29A-3-401): Required for contested wills, disputed heirs, or registrar refusal. Circuit Court judge conducts a hearing.

File the Application for Informal Probate

File in the Circuit Court of the county where the decedent was domiciled at death. The Application must include:

• Decedent's name, date and place of death, and domicile county
• Names and addresses of all heirs and devisees
• Name and address of the nominated Personal Representative
• Original will filed with the application (if one exists)
• Statement that the 3-year time limit for informal probate has not expired

The probate registrar reviews the application and, if complete, issues Letters Testamentary (with will) or Letters of Administration (without will) — no hearing required for informal probate.

Get Your EIN and Open the Estate Account

• Apply for a federal EIN at irs.gov — takes minutes online; you will need it to open the estate bank account and file any fiduciary returns.
• Open a dedicated estate checking account using your Letters Testamentary and the estate EIN.
• Notify the Social Security Administration of the death and return any payments received after the date of death.
• Send written notice to all heirs and devisees within a reasonable time after appointment (SDCL § 29A-3-705).
• Secure and insure all real property.

Publish Notice to Creditors — Start the 60-Day Clock

Publish Notice to Creditors once per week for three consecutive weeks in a newspaper of general circulation in the county where the estate is being administered (SDCL § 29A-3-801). The 60-day creditor claim period begins on the date of first publication.

Also send direct written notice to all known creditors. Retain and file the publisher's Affidavit of Publication.

Prepare the Estate Inventory (Due Within 3 Months)

Prepare an inventory within 3 months of appointment (SDCL § 29A-3-706), valuing all probate assets at date of death. South Dakota-specific considerations:

• Real estate: Formal appraisal by a licensed South Dakota appraiser recommended. Farm and ranch land requires an agricultural appraiser.
• Agricultural land and crops: If the estate includes a farming or ranching operation, obtain appraisals for land, machinery, livestock, and stored grain separately.
• Business interests: South Dakota is a popular state for trust companies and holding companies — obtain a professional business valuation for any such interests.
• Financial accounts: Use account balance statements dated on the day of death.

In informal probate, the inventory is not filed with the court unless an interested party requests it — but you must prepare one and provide it upon request.

Manage Estate Assets During Administration

• Route all estate income through the estate checking account.
• Continue mortgage, property tax, insurance, and utility payments on real property.
• Retitle investment and brokerage accounts in the estate's name using the estate EIN.
• If the estate includes a farming or ranching operation, maintain it through administration or make decisions about continuation vs. sale in consultation with the heirs.

The Personal Representative has independent statutory authority (SDCL § 29A-3-715) to sell estate property without court approval when needed to pay debts or facilitate distribution.

Review Claims and Pay Debts

After the 60-day creditor period closes, review all claims filed. Allow or reject each claim in writing. A rejected creditor has 60 days from the notice of rejection to petition the court (SDCL § 29A-3-804).

If the estate is insolvent, pay claims in this priority order (SDCL § 29A-3-805):

1. Costs and expenses of administration
2. Reasonable funeral expenses
3. Federal taxes and debts with federal preference
4. Reasonable medical expenses of the last illness
5. State taxes and debts with South Dakota preference
6. All other claims

File Tax Returns

Transfer Property, Distribute, and File the Closing Statement

Real property: Execute a Personal Representative's Deed for each South Dakota parcel. Record with the county Register of Deeds in the county where the property is located. Note: South Dakota imposes a real estate transfer tax of $0.50 per $500 of value — transfers from a Personal Representative to a beneficiary may qualify for an exemption; confirm with the Register of Deeds.

Vehicles: Transfer title at the South Dakota DMV with certified Letters and a certified death certificate.

Financial accounts: Present certified Letters and death certificate to each institution. Obtain signed receipts from each beneficiary.

Closing Statement (SDCL § 29A-3-1003): File with the Circuit Court probate registrar after all assets are distributed. No court hearing required. Important: the Closing Statement cannot be filed until at least 6 months after the date of appointment — even if the estate is fully administered sooner. The Personal Representative's liability ceases one year after filing.