How to determine whether a bank account counts toward South Dakota’s $20,000 small estate limit

Disclaimer: This is informational only and not legal advice. For help applying the law to your situation, consult a licensed South Dakota attorney.

Detailed answer — what the $20,000 small estate rule means and how to verify account value

South Dakota allows a simplified small estate procedure for certain personal property when the decedent’s net personal property does not exceed a statutory dollar limit. To use the process you must be sure the estate’s personal property (after applicable offsets) falls at or below that limit. See South Dakota probate law for the small estate procedures (Title 29A of the South Dakota Codified Laws): https://sdlegislature.gov/Statutes/DisplayTitle.aspx?Title=29A.

Below are concrete steps to determine whether a particular bank account (and the estate overall) is under the $20,000 threshold used for South Dakota’s small estate filings.

Step 1 — Identify which accounts and assets are counted

• Count only property that must pass through probate or be collected by the estate. Nonprobate assets do not count: examples include accounts with payable-on-death (POD) or transfer-on-death designations, assets titled jointly with rights of survivorship that pass to the surviving joint owner, and life insurance or retirement accounts with named beneficiaries. Confirm whether an account is POD/joint by checking the bank’s records and the account title.
• Include personal property in the decedent’s name that the estate must collect (cash, checking/savings owned solely by the decedent, valuable personal property, some stocks, and other assets without beneficiary designations).
• If an account is jointly held but the bank treats it as joint tenancy, the surviving owner often owns the funds. If the joint owner and the estate contest ownership, those amounts can become contested and may be treated differently.

Step 2 — Get accurate balances as of the date of death

• Gather the decedent’s recent bank statements and online access (if available). Statements show average balances and activity but you need the balance on the date of death.
• Contact the bank’s probate or fiduciary desk. Ask for a certified statement of the account balance on the date of death, and ask how the account is titled in the bank’s records. Banks commonly provide a certified ledger or letter for probate purposes when you submit a certified death certificate and identification.
• If you cannot get a certified statement, use the most reliable records available: last statement, ledger balances, cleared check images, and online history. Note that the court or third parties may require a bank-supplied statement for formal filings.

Step 3 — Add up all probate property and subtract applicable amounts

• Sum balances of all accounts and items that must be collected by the estate (only those assets counted in Step 1).
• Reduce that total by valid encumbrances that attach to the personal property you are counting (for example, liens on particular property). Ordinary debts are not always deducted from the gross amount to reach the statutory threshold — read the statute or ask the probate clerk whether the threshold is based on gross personal property or net after debts. If you cannot locate a statute interpretation, the probate clerk or an attorney can advise.
• If the total of the estate’s probate personal property is at or below $20,000, you can generally proceed with South Dakota’s small estate affidavit/procedure rather than a full probate. If it exceeds $20,000, you must use formal probate administration or other procedures.

Step 4 — Check account ownership details that change whether the money counts

• POD or beneficiary designations: If the bank account has a named pay-on-death beneficiary, the funds pass directly to that person and normally are not part of the probate estate. Ask the bank for the beneficiary designation on file.
• Joint accounts: If another person is a joint owner with rights of survivorship, the bank balance may belong to the survivor and not the estate. The bank’s records control how the bank releases funds; however, ownership disputes can arise that may require court resolution.
• Trust-owned accounts: If the account is held in a revocable trust, it usually avoids probate and does not count toward the small estate limit.

Step 5 — Use the small estate affidavit (if eligible) or ask the court/probate clerk

• If your calculations show the estate’s probate personal property is within the $20,000 limit, locate the South Dakota small estate affidavit form or instructions from the county probate court or the South Dakota Unified Judicial System. The affidavit tells banks and other holders how to distribute specific assets without formal probate.
• If the bank refuses to release funds using the small estate affidavit, ask the bank what documentation they require (they may require a certified affidavit, certified death certificate, photo ID, and a waiting period). Keep written records of what the bank asks for.
• If you’re unsure whether property counts or whether debts or liens reduce the total, consult the county probate clerk or a South Dakota attorney before relying on the affidavit. The clerk can often explain filing requirements and point to forms or statutes.

Practical checklist — what to gather and ask the bank

• Certified copy of the decedent’s death certificate (banks typically require this).
• Your photo ID and proof of your relationship or status (personal representative, heir, beneficiary, spouse).
• All relevant account numbers and recent statements.
• Ask the bank: (1) How is the account titled in your records? (sole name, joint with rights of survivorship, POD, IRA/retirement, trust); (2) What was the balance on the date of death? Can you provide a certified ledger? (3) What documents do you require to release funds?
• Collect any beneficiary designation forms or trust documents that show nonprobate status of assets.

When to get help from a probate clerk or attorney

• If ownership is unclear (joint account disputes, inconsistent bank records, unclear beneficiary designations).
• If total probate personal property is near the $20,000 limit and you aren’t sure whether to include particular items.
• If the bank refuses to follow the small estate affidavit or asks for additional court orders.
• When creditors or potential claimants dispute distributions or the size of the estate.

Where to find South Dakota statutes and court resources

South Dakota’s probate and small estate rules appear in Title 29A of the South Dakota Codified Laws. Review the probate title here: https://sdlegislature.gov/Statutes/DisplayTitle.aspx?Title=29A. For local procedures and forms, contact the county probate court or the South Dakota Unified Judicial System.

Helpful Hints

• Do not assume an account is part of the estate just because it appears in the decedent’s name; confirm title and beneficiary designations with the bank.
• Get bank statements and a certified ledger early; banks sometimes freeze accounts and require paperwork before releasing funds for funeral expenses.
• Keep a running written total of probate assets and document how you calculated each item and why it is or is not included.
• If the estate is only a little over $20,000, an attorney can sometimes advise on strategies (for example, identifying nonprobate transfers) that avoid formal probate. But don’t move assets after death without legal advice; those actions can create disputes.
• When in doubt, call the county probate clerk. Clerks can explain filing requirements and may provide local forms for small estate affidavits.

If you want, tell me what bank/account details you can share (account title type, whether it lists beneficiaries or joint owners, and the last statement balance). I can walk you through how to categorize that account and estimate whether the estate likely qualifies for the small estate process under South Dakota law.