Detailed Answer

Short summary: In South Dakota, what happens to money and property after a person dies without a will depends first on how each asset is titled. Assets that pass outside probate (joint accounts with rights of survivorship, payable‑on‑death/transfer‑on‑death accounts, and named‑beneficiary accounts) typically go directly to the surviving owner or beneficiary. Assets titled solely in the decedent’s name or held as tenants in common generally become part of the probate estate and are distributed under South Dakota’s intestate succession rules (the Uniform Probate Code provisions in SDCL Title 29A).

Non‑probate transfers (often bypass probate)

• Joint accounts with right of survivorship: When a bank account or real property is owned as a joint tenancy with right of survivorship, the surviving joint owner generally becomes the sole owner automatically at death. The institution will usually require a certified death certificate and identification before releasing funds or changing title.
• Payable‑on‑death (POD) / Transfer‑on‑death (TOD) designations: Accounts or securities with POD/TOD beneficiaries pass directly to the named beneficiary upon death and do not go through probate.
• Retirement accounts and life insurance: These pass to the named beneficiary on the contract form, not according to any will or intestacy rules (unless no beneficiary is named).

Probate assets (distributed under intestacy rules)

Assets that remain solely in the decedent’s name (and do not have a valid beneficiary designation or survivorship arrangement) typically enter probate. When there is no will, South Dakota’s intestate succession framework applies. The Uniform Probate Code, as adopted in South Dakota, sets out who inherits and in what shares — commonly giving priority to a surviving spouse and descendants, then other relatives if none survive. See South Dakota’s Uniform Probate Code (Title 29A of the South Dakota Codified Laws) for the statute language and order of distribution: https://sdlegislature.gov/Statutes/Codified_Laws/DisplayTitle.aspx?Title=29A

Practical mechanics at common institutions

Banks and other institutions will generally ask for a certified copy of the death certificate and proof of identity for the surviving owner or beneficiary. If an account is jointly owned with survivorship rights, banks commonly pay the survivor without probate. If title is not clear, or the institution believes the account belongs to the probate estate, it may refuse to release funds until a personal representative is appointed by the probate court.

Creditor claims and the probate process

Assets that are part of probate are subject to creditor claims during the probate process. Non‑probate transfers (POD/TOD/joint survivor) generally pass free of probate administration, but creditors may have separate remedies against survivors or transfers in some circumstances. The probate court supervises distribution of probate assets under SDCL Title 29A (Uniform Probate Code).

Common ownership forms and their usual effects

• Joint tenancy with right of survivorship: Survivor owns everything after death (non‑probate).
• Tenancy in common: Each owner’s share is part of that owner’s probate estate and passes via will or intestacy.
• Entirety (married couples): Some jurisdictions recognize tenancy by the entirety for married couples; if recognized, it functions like survivorship ownership for spouses. Confirm the effect under South Dakota law for real property and bank accounts.
• Contract/beneficiary designations (POD/TOD, insurance, retirement): Pass to named beneficiary outside probate if the designation is valid and current.

Hypothetical examples

Example 1: A and B hold a bank account as joint tenants with right of survivorship. A dies without a will. B goes to the bank with A’s death certificate and becomes the sole owner of the account.

Example 2: C owns a house as tenants in common with D. C dies intestate. C’s share goes into probate and is distributed under South Dakota’s intestate rules (likely to C’s spouse and/or children if any), not automatically to D.

Where to find the rules in South Dakota law

South Dakota’s intestate and probate rules are in the Uniform Probate Code provisions found at SDCL Title 29A. You can review the statutory text here: https://sdlegislature.gov/Statutes/Codified_Laws/DisplayTitle.aspx?Title=29A. For practical probate procedures, the South Dakota Unified Judicial System also provides probate information and forms (see the court website for local procedures and contact information).

Important: The precise outcome in any particular case depends on the exact wording of account titles and deeds, any beneficiary designations, the type of ownership interest, and bank or contract procedures. Small‑estate procedures or affidavits can sometimes be used to claim modest assets without full probate, subject to statutory limits and court rules.

Helpful Hints

• Obtain several certified copies of the death certificate right away. Banks, insurers, and title companies will ask for them.
• Check how each asset is titled: sole name, joint tenancy, tenancy in common, POD/TOD, or beneficiary designation. Title controls transfer method.
• Ask the bank what documentation they require. Some banks will release funds quickly to a surviving joint tenant; others insist on probate paperwork if ownership is unclear.
• Locate beneficiary designations on retirement accounts and life insurance — those override wills and intestacy for those assets if validly completed.
• If estate assets likely exceed small‑estate limits or if ownership is disputed, consider consulting a South Dakota probate attorney to protect rights and meet deadlines for creditor notices.
• Keep an inventory of assets, account statements, deeds, and beneficiary forms. That list helps the personal representative or family members handle estate settlement efficiently.
• If someone claims a creditor’s debt against the decedent, know that probate provides a process for evaluating and resolving creditor claims before final distribution of probate assets.
• Even when assets pass outside probate, survivors may want legal advice about potential tax consequences, creditor exposure, and clean title for real estate transfers.

Where to read more: Review South Dakota’s Uniform Probate Code in SDCL Title 29A for statutory language on intestate succession and probate administration: https://sdlegislature.gov/Statutes/Codified_Laws/DisplayTitle.aspx?Title=29A