Can a co‑heir be required to reimburse an appraisal before an estate buyout?—South Dakota FAQ

Short answer: Sometimes. Whether you can require a co‑heir to reimburse you for an appraisal before completing an estate buyout depends on how the estate is being handled (formal probate vs. private buyout), whether the appraisal was ordered by a court or the personal representative, and whether the appraisal benefited the estate or was paid for by one heir acting unilaterally. South Dakota law gives courts authority in probate and partition cases to allocate costs. If the appraisal was a necessary estate expense, it is normally paid from estate funds; if it was private, reimbursement depends on agreement or a court’s equitable decision.

Detailed answer — what the law and practice look like in South Dakota

This answer assumes no attorney‑client relationship. It is educational only and not legal advice.

Key legal frameworks to consider

• Probate rules and the duties of a personal representative (estate administration) are governed by South Dakota’s probate statutes (Title 29A). The personal representative generally has authority and duty to collect and value assets and to pay necessary administration expenses from estate funds. See South Dakota codified laws for probate (Title 29A): sdlegislature.gov – Title 29A (Probate).
• If co‑owners cannot agree about dividing real property, a partition action in circuit court may be used. The court can appoint appraisers or referees and typically can allocate costs and fees among the parties. See South Dakota statutes about partition: sdlegislature.gov – Chapter 21‑47 (Partition).

When an appraisal is treated as an estate administration expense

If the appraisal was obtained by the personal representative (executor/administrator) or was ordered by the probate court to value estate property, the appraisal fee is ordinarily an estate administration expense. The personal representative can pay it from estate funds, and the cost is charged against the estate or apportioned by the court. In that situation you generally cannot force a cotenant/co‑heir to personally pay you before an estate buyout because the expense belongs to the estate unless the probate court orders a different allocation.

When a private appraisal may be a personal expense

If a single heir (or a buyer who is also an heir) hires and pays for an appraisal privately to support a side buyout, the other co‑heir has no automatic statutory duty to reimburse unless:

• there is a prior agreement (written or oral) requiring reimbursement, or
• the appraisal produced a direct, measurable benefit to the other co‑heir and a court finds it equitable to require reimbursement (for example, in a partition or accounting proceeding), or
• the appraisal was effectively necessary to preserve estate value and the party who paid can show the expense was incurred for the benefit of all heirs.

Partition or probate court can allocate costs

If you and the co‑heir cannot agree, you can ask the court to resolve the matter. In a partition action or a probate accounting, South Dakota courts commonly allocate appraisal and other litigation costs among parties in a way the judge deems fair. If the court ordered an appraisal or appointed an appraiser, the court can assess who pays and in what proportion.

Practical factors courts consider

• Whether the appraisal was necessary to value estate property accurately.
• Whether the appraisal was ordered by the court or the personal representative.
• Whether the appraisal benefited all heirs (e.g., established fair market value used in distributions or buyouts).
• Whether one party acted unreasonably or obstructed the administration of the estate.

Typical scenarios and likely outcomes

Below are common fact patterns and likely outcomes under South Dakota practice:

• Scenario A — Probate opened; PR orders appraisal: Fee paid from estate. You cannot demand personal reimbursement from a co‑heir before buyout. Ask the personal representative to pay from estate funds.
• Scenario B — Heir A privately hires appraiser to set a buyout price: Heir B is not automatically required to reimburse. Heir A can try to negotiate reimbursement or ask a court (probate or partition) to apportion the cost if Heir A can show the appraisal benefited both.
• Scenario C — Court‑ordered partition with appraisers appointed: The court will typically allocate appraisal fees between parties per its order.

What you can do now — step‑by‑step options

1. Confirm whether probate is open and whether a personal representative handled the appraisal. If so, request the personal representative’s accounting and copies of invoices.
2. If the appraisal was private, try a written demand: state the appraisal cost, show how it benefited the estate, and request reimbursement or offer a net buyout price reflecting reimbursement.
3. If negotiation fails, consider filing a petition in probate or a partition action in circuit court asking the judge to (a) determine distribution/buyout terms and (b) apportion appraisal and related costs equitably.
4. Document everything: appraisal invoice, engagement letter, communications, proof the appraisal affected the buyout price or estate valuation.
5. Consider mediation or a settlement conference before litigating. Courts often require or encourage alternative dispute resolution to resolve estate buyouts and cost allocation.

Timing, costs, and practical tips

• Raise the reimbursement issue early. Courts dislike surprises in final accounting or distribution.
• Get written agreements whenever possible. A short buyout agreement that says who pays for valuation avoids disputes.
• If you are the personal representative, follow the probate code’s duties to value estate assets and to keep beneficiaries informed; paying reasonable appraisal fees from estate funds is standard.
• Keep appraisal engagement letters that define scope and to whom the report is addressed (estate, personal representative, or a party). A report made for the estate weighs in favor of estate payment.

Relevant South Dakota statutes and resources

• South Dakota Probate statutes (Title 29A) — for personal representative duties, estate administration, and accounting: sdlegislature.gov – Title 29A (Probate)
• South Dakota statutes on partition (real property) — for court‑ordered valuations and cost allocation in partition cases: sdlegislature.gov – Chapter 21‑47 (Partition)

When to talk to an attorney

Consider consulting a South Dakota probate or real property attorney if:

• The appraisal is large relative to the estate and the co‑heirs cannot agree.
• A personal representative refuses to account for estate expenses.
• You need to file a petition to compel accounting, seek equitable allocation of costs, or start a partition action.

An attorney can review the facts, help decide whether to seek relief in probate or circuit court, draft a demand letter, and represent you in negotiations or litigation.

Helpful Hints

• Ask: Was the appraisal ordered by the court or the personal representative? If yes, treat it as an estate expense.
• Get the appraisal contract and invoice. The wording often controls who benefits.
• Document how the appraisal changed the buyout price—this shows benefit to other heirs.
• Offer a simple settlement: reduce the buyout price by the appraisal cost rather than litigating.
• If you are the personal representative, timely disclose the appraisal cost in the accounting to avoid later challenges.
• Use mediation early—courts and attorneys often prefer settlement over long, costly litigation.
• If a co‑heir will not cooperate, file a short petition to the probate or circuit court asking for direction on cost allocation.

Disclaimer: This article explains general principles of South Dakota law for educational purposes only. It is not legal advice and does not create an attorney‑client relationship. For advice about your specific situation, consult a licensed South Dakota attorney.