Disclaimer: This article is for informational purposes only and does not constitute legal advice. For guidance tailored to your situation, consult a licensed attorney in South Dakota.
Detailed Answer
When a person passes away, their assets—including bank accounts—become part of their estate. To lawfully access and withdraw funds, you must follow South Dakota probate procedures under the South Dakota Codified Laws (SDCL) Title 29A.
1. Determine the Probate Path
South Dakota offers two main paths: formal probate and small estate affidavit.
- Formal Probate: Required if the estate’s personal property exceeds the small estate threshold. File a Petition for Probate with the county court.
- Small Estate Affidavit: Available if the estate’s personal property (excluding real estate) is valued at $50,000 or less. Under SDCL §29A-3-801 et seq., you can use a small estate affidavit to collect bank funds without formal probate. SDCL §29A-3-801.
2. Appoint a Personal Representative
In formal probate, the court appoints a personal representative (executor or administrator) under SDCL §29A-3-303 (SDCL §29A-3-303). The personal representative obtains Letters of Administration or Letters Testamentary under SDCL §29A-3-501 (SDCL §29A-3-501).
3. Open an Estate Bank Account
Present certified Letters of Administration or Testamentary to the decedent’s bank. This allows the bank to close the deceased’s account and transfer the balance into an estate account. Keeping funds separate ensures proper payment of debts, taxes, and distributions.
4. Withdraw Funds Properly
The personal representative may withdraw needed funds under their statutory powers (SDCL §29A-3-717: SDCL §29A-3-717). Authorized uses include:
- Paying funeral and administrative expenses
- Settling valid creditor claims
- Distributing remaining assets to heirs or beneficiaries
Maintain detailed records and retain bank statements to show transparency and compliance with court oversight.
Helpful Hints
- Verify the estate’s value before choosing small estate procedures.
- File probate documents promptly to avoid processing delays.
- Keep estate and personal accounts strictly separate.
- Provide banks with certified court documents only.
- Retain all receipts and transaction records for accounting.
- Consider consulting a probate attorney for complex or contested estates.