Settling a Parent’s Estate in South Dakota and Managing Property in Another State

Disclaimer: This is general information, not legal advice. I am not a lawyer. For legal advice tailored to your case, contact a licensed attorney in South Dakota and in the state where the property is located.

Quick overview

When a parent dies and owned assets in South Dakota and in another state, you normally must open probate in the decedent’s home state (South Dakota if that was the decedent’s domicile) to administer the South Dakota assets. For real estate or certain assets located in the other state, you typically must take a separate action in that state (often called ancillary probate) or use an out‑of‑state transfer procedure available there. The steps below explain what to expect under South Dakota probate practice and how to handle out‑of‑state property.

Detailed answer — step-by-step

1. Confirm domicile, gather basic documents, and get certified death certificates

– Confirm the decedent’s legal domicile. Domicile determines where primary probate must be opened. If the decedent was domiciled in South Dakota, open probate here.
– Locate the original will and any trust documents. Search safe deposit boxes, attorney files, and personal papers.
– Order several certified copies of the death certificate from the vital records office. You will need these for banks, title companies, and courts.

2. Decide whether probate is required in South Dakota

– Not all estates require full probate. Small estate procedures, payable‑on‑death designations, joint ownership, and trust assets can pass outside probate. Review South Dakota probate statutes for thresholds and procedures. See South Dakota Codified Laws, Title 29A — Probate and Trust Code: sdlegislature.gov — Title 29A.
– If probate is needed, the person named as executor in the will (or a close family member if no will) files a petition to open estate administration and to be appointed personal representative.

3. Open probate in South Dakota

– File a petition in the appropriate South Dakota county probate court to admit the will (if any) and to appoint a personal representative. The court issues letters testamentary or letters of administration.
– The personal representative then has authority to collect assets, pay bills and taxes, and distribute property under the will or statute. The South Dakota courts provide probate forms and local rules; check the Unified Judicial System for probate information: ujs.sd.gov — Probate.

4. Inventory assets and secure property

– Prepare an inventory showing South Dakota assets (bank accounts, personal property, vehicles, South Dakota real estate) and any known out‑of‑state assets.
– Secure real properties (change locks, maintain insurance, continue mortgage payments if necessary) to protect value.

5. Notify beneficiaries and creditors, and publish notice if required

– Give formal notice to heirs and beneficiaries according to South Dakota probate rules. Publish a notice to creditors if required by the court. This starts the claims period and gives creditors a chance to file.

6. Handle debts, taxes, and administration in South Dakota

– Pay valid debts and final bills from estate funds. Prepare necessary federal and state tax filings. Keep careful records; you will likely file an accounting with the court before closing the estate. See general probate law in South Dakota Codified Laws, Title 29A: sdlegislature.gov — Title 29A.

7. Identify and handle the out‑of‑state property

– Determine the type and location of the out‑of‑state asset (real estate, bank accounts, vehicles, securities, etc.). Real estate and titled assets usually require action in the state where they are located.
– Two common approaches:

• Ancillary probate: Open a secondary probate case in the state where the property sits. The South Dakota personal representative’s authority is recognized through the court process in that state so the ancillary court can transfer title. This is common if the decedent owned real property outside South Dakota.
• Transfer by local procedures: Some states allow transfer of small estates or personal property by affidavit, summary probate or streamlined procedures that avoid full ancillary administration. The rules (and monetary thresholds) differ by state.

– Because the rules differ by state, you will often need a local attorney in the other state to complete title transfers, record deeds, and ensure proper compliance with that state’s probate rules.

8. Transfer or sell the out‑of‑state property

– If ancillary probate is necessary, the ancillary court will typically require proof of appointment of the South Dakota personal representative (letters testamentary/administration) and may require local forms. After the ancillary proceeding, the ancillary court issues an order that allows transfer of real estate or other local assets.
– If the out‑of‑state asset can be transferred by affidavit or summary procedure, follow that state’s statutory process and record necessary documents with the county recorder or title office.

9. Final accounting and closing the South Dakota estate

– After paying debts, taxes, and making permitted distributions, file a final account with the South Dakota probate court and petition for closing the estate. The court will authorize distribution of remaining assets and discharge the personal representative.

When you will need a lawyer in each state

– Use a South Dakota probate attorney to open and administer the primary estate if the decedent was domiciled in South Dakota.
– Use an attorney licensed in the other state to handle ancillary probate, real property transfers, or local tax issues for property located there. Attorneys can coordinate so one attorney acts as liaison for the other, reducing duplication.

Timing and costs — what to expect

– Probate timing varies widely: a simple, uncontested estate might close in months; complex estates or estates with litigation, many creditors, or real estate issues can take a year or more.
– Costs include court filing fees, publication costs, appraisal fees, attorney fees, and costs to maintain property. Ancillary proceedings add fees and possible attorney costs in the other state.

Relevant South Dakota law resources

• South Dakota Codified Laws — Probate and Trust Code, Title 29A: https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute?Type=Title&title=29A
• South Dakota Unified Judicial System — Probate information and local court contacts: https://ujs.sd.gov/Court_Services/Probate

Helpful Hints

• Get multiple certified death certificates immediately; many institutions require originals.
• Keep a timestamped file of all estate actions, notices, and payments to simplify accounting and court filings.
• If real estate exists out of state, do not transfer title or execute a deed without confirming the correct procedure with a local attorney — mistakes can void transfers.
• Ask for a creditor list early. Publish required notices promptly to limit liability for unknown creditors.
• Consider whether the estate qualifies for small‑estate or summary administration in either state before starting full probate; this can save time and cost.
• Coordinate tax filings: consult both a probate attorney and a tax professional about federal estate tax, state estate taxes (if any), and final income tax returns.
• If you expect litigation or disagreements among heirs, hire counsel early to help manage communications and protect estate assets.
• Make sure any real property is properly insured and utilities maintained while the estate is open.

If you want, provide the state where the out‑of‑state property is located and a brief description of the asset (real estate, bank account, vehicle). I can outline typical steps for that specific state and point you to the likely local statutes and resources.