Detailed Answer
When an individual dies in South Dakota, their bank accounts become part of the probate estate. If one heir or more refuse to cooperate, interested parties can ask the circuit court to appoint a personal representative (PR) who can secure assets, freeze accounts, and prevent unauthorized withdrawals.
1. Petition for Letters of Administration
File a Petition for Letters of Administration in the circuit court of the county where the decedent last resided. Include:
- Certified copy of the decedent’s death certificate
- Decedent’s full legal name and date of death
- Names and current addresses of all heirs or devisees
- Estimated value and locations of bank accounts
- Name and address of the proposed personal representative
This process is governed by SDCL 29A-3-120. SDCL 29A-3-120
2. Oath and Bond
The proposed PR must take an oath and post a bond, usually equal to the estate’s total value. Once approved, the clerk will issue Letters of Administration.
3. Notice to Creditors and Heirs
After letters issue, the PR must publish a notice to creditors and serve notice on all known heirs under SDCL 29A-3-308. This ensures everyone has the chance to object or stake a claim.
4. Freezing or Securing Bank Accounts
Present the Letters of Administration to each financial institution holding decedent funds. Banks must honor these letters and any court-issued restraining order. The PR can then place a hold on accounts to prevent withdrawals.
5. Small Estate Affidavit Option
If total personal property is under $50,000, heirs may use an Affidavit for Collection by Heir under SDCL 29A-3-311. This allows asset collection without full administration. However, all heirs must sign. If one refuses, you must pursue formal administration.
Disclaimer
This article provides general information and does not constitute legal advice. Consult a licensed South Dakota attorney for guidance tailored to your situation.
Helpful Hints
- Gather certified death certificates early to avoid delays.
- Compile a list of all known heirs with current addresses.
- Consider an emergency ex parte petition if accounts face imminent withdrawal.
- Keep copies of every court filing and bank correspondence.
- Review the small estate threshold before choosing an affidavit option.
- Hire a probate attorney if conflicts intensify or assets exceed the small estate limit.