How remaining estate funds are distributed to a decedent’s children in South Dakota

Disclaimer: This article explains general South Dakota probate concepts and is not legal advice. For specific legal guidance about an actual estate, consult a licensed South Dakota attorney.

Detailed Answer — step‑by‑step process

When a person dies in South Dakota, the process to distribute any remaining estate funds to the decedent’s children normally follows the probate administration rules in the South Dakota Uniform Probate Code (Title 29A). The personal representative (called an executor if named in a will, or an administrator if appointed by the court) has the duty to collect assets, pay valid claims and taxes, and then distribute the remainder to the rightful beneficiaries — in this case, the children. Below are the typical steps and the legal principles that govern each step.

1. Determine whether probate is required and which administration applies

Not every estate requires full formal probate. South Dakota provides standard probate administration and simpler procedures for small estates or when all heirs agree. The personal representative (or a family member) should confirm which type of administration applies before making distributions. See the South Dakota Probate Code (Title 29A) for the governing statutory procedures: SDCL Title 29A (Probate).

2. Appointment of the personal representative

If there is a will, the named executor normally petitions the court to be appointed personal representative. If there is no will, a close family member petitions the court to be appointed administrator. The court issues letters testamentary or letters of administration that give the representative authority to act for the estate.

3. Inventory assets and give required notices

The personal representative must identify and secure estate assets, open estate bank accounts as necessary, and prepare an inventory. The representative must also provide notice to known creditors and may be required to publish notice to unknown creditors under the probate rules so claims can be presented.

4. Pay debts, expenses, and taxes

The personal representative uses estate assets to pay valid creditor claims, funeral expenses, administration costs (attorney and court fees), and any taxes. Important tax notes for South Dakota:

• South Dakota does not impose a state estate tax or state inheritance tax. Only federal estate tax (if any) could be due, depending on the size of the gross estate. See the IRS for federal estate tax rules: IRS — Estate Tax.
• The estate may need to file the decedent’s final personal income tax returns and, if the estate generates income during administration, an estate income tax return.

All creditor claims must be handled according to the time frames and procedures set out in the probate code; the representative may need court approval to pay disputed claims.

5. Prepare a final accounting and petition for distribution

Once claims and taxes are resolved, the personal representative prepares a final accounting that shows money received, expenses and claims paid, and the balance remaining for distribution. The representative typically files a petition (or motion) asking the probate court to approve the accounting and to authorize final distribution to beneficiaries. The court will review the accounting and may hold a hearing. If the estate was administered informally and all heirs consent, distribution may occur with less court involvement.

6. Distribute the remaining funds to the children under the will or intestacy rules

If the decedent left a will, distribution follows the will’s terms once the court approves the final accounting and issues an order of distribution. If there is no valid will, South Dakota’s intestate succession rules apply (Title 29A). Under those rules:

• If the decedent left only children and no surviving spouse, the children inherit the estate (generally in equal shares unless the statute or circumstances provide otherwise).
• If a child predeceased the decedent but left descendants (grandchildren of the decedent), those descendants typically take the deceased child’s share by representation (the probate code’s rules of representation apply).
• If a surviving spouse exists, the spouse’s share and the children’s share depend on the particular intestacy statute and the family situation; the probate code explains how to divide the estate between spouse and descendants.

Refer to South Dakota’s probate code for the exact intestate distribution rules: SDCL Title 29A (Intestate Succession & Distribution).

7. Transfer ownership and clear title

After the court approves distribution and signs an order, the personal representative may transfer funds by check or bank transfer and transfer real estate or titled assets by executing deeds or assignment documents as directed by the court order. For real property, the deed should be recorded in the county where the property is located to update title. If the heirs receive property that has associated liens, mortgages, or taxes, those encumbrances must be resolved according to the distribution plan or as specified by the court.

8. Obtain receipts, close the estate, and petition for discharge

Beneficiaries should sign receipts acknowledging distribution. The personal representative then files any closing documents required by the court and petitions for discharge (release from further duties). Once discharged, the representative’s liability for estate management ends for the period covered by the approved accounting.

Typical timelines and common issues

• Simple estates with clear wills and cooperative heirs may close in a few months after all claims are resolved. More complex estates or contested claims can take a year or longer.
• Disputes among heirs about the will, accounting, or distribution can delay final distribution and may require litigation.
• If a beneficiary is a minor, the court may require that the minor’s share be managed (for example by a guardian or by court-ordered custodial arrangements) rather than paid directly.
• Beneficiaries who do not want their share can disclaim it; disclaimers must follow statutory formalities to be effective.

Where to find South Dakota statutes and further resources

Key South Dakota resources:

• South Dakota Codified Laws — Title 29A (Probate / Uniform Probate Code): https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Title&Title=29A
• IRS — Federal estate tax details: https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax

Helpful Hints

• Locate the will (if any) and identify the named personal representative immediately.
• Secure all bank accounts, safe deposit boxes, and valuable property to prevent loss or theft.
• Keep careful, contemporaneous records of every asset collected and every expenditure made by the estate — the court will require an accounting.
• Provide timely notice to known creditors and follow statutory procedures for publishing notice to unknown creditors.
• Confirm whether any federal estate tax return is required before distributing assets. Even when there is no state estate tax, a federal return may be necessary for large estates.
• If a child beneficiary is a minor, plan how the share will be held or managed; consider guardianship or court‑approved custodial arrangements.
• Do not distribute estate funds before liabilities and taxes are reasonably resolved unless you have court approval or unanimous written consent from all interested persons — premature distribution can create personal liability for the representative.
• If heirs disagree about distribution, consider mediation or legal counsel to avoid extended litigation that reduces the estate’s value.
• If the estate is small, ask an attorney whether South Dakota’s simplified or small‑estate procedures apply; those procedures can save time and expense.
• Work with a South Dakota probate attorney or your local probate court clerk when unsure about forms, deadlines, or statutory requirements.

For specific questions about how these rules apply to a real case, or to begin the probate process, contact a South Dakota probate attorney or your county probate court. This article is educational only and does not create an attorney‑client relationship nor constitute legal advice.