FastCounsel

Disclaimer: This article is for general information purposes only and does not constitute legal advice. Always consult a licensed attorney for guidance on your specific situation.

Detailed Answer

In South Dakota, a personal representative (formerly “executor”) must collect and value all assets, pay valid debts and fees, then distribute the remainder to heirs or beneficiaries. To determine what remains, follow these steps:

1. Compile and File an Inventory
   Within 60 days of appointment, the personal representative must file a detailed inventory of estate assets with the probate court (see SDCL §29A-3-711). This includes real estate, bank accounts, vehicles, investments, and personal property.
2. Identify and Notify Creditors
   SDCL §29A-3-715 requires notice to known creditors. The representative publishes a notice and mails it to known creditors. Creditors then have a limited time to file claims.
3. Review and Approve Claims
   Valid claims include funeral costs, medical bills, taxes, and other debts. The court reviews each claim. SDCL §29A-3-715 establishes a priority order: funeral expenses and administration costs come first, followed by secured debts, tax claims, and unsecured debts.
4. Pay Debts, Fees, and Allowances
   After claims approval, pay debts in priority order. The court sets attorney fees and personal representative commissions. SDCL §29A-3-715 governs statutory allowances like homestead and family allowances.
5. Calculate Net Remaining Assets
   Subtract the sum of paid debts, court costs, allowances, taxes, and fees from the total gross estate value. The result is the net estate available for distribution.
6. Distribute the Net Estate
   Under SDCL §29A-3-716, distribute remaining assets according to the will or, if there’s no will, under South Dakota’s intestacy rules. The personal representative files a final accounting with the court showing all receipts, disbursements, and remaining balances.

Hypothetical Example: Jane Doe’s estate includes a $200,000 home, $50,000 in bank accounts, and a $10,000 vehicle. After filing an inventory, she notifies creditors. Approved claims total $20,000 in medical bills, $5,000 funeral expenses, $3,000 tax debt, and $7,000 in unsecured debts. Court-approved fees and allowances total $12,000. Gross estate value is $260,000; total debts and fees amount to $47,000. The net remaining estate is $213,000, which Jane distributes to beneficiaries per the will.

Helpful Hints

• Keep detailed records of all estate transactions and receipts.
• Use a professional appraiser for high-value assets to ensure accurate valuation.
• Maintain communication with beneficiaries about the probate timeline.
• File creditor notices promptly to avoid personal liability for unpaid claims.
• Consult SDCL chapters 29A-2 and 29A-3 for allowances, claims, and distribution rules.