Detailed Answer
When a South Dakota estate sells real property during probate, the personal representative needs clear authorization from heirs before distributing net sale proceeds. Heirs typically sign three primary documents to direct distribution:
1. Consent to Sale of Real Property
Under SDCL §29A-3-602, the personal representative may sell estate property after obtaining either a court order or written consents from all interested parties. Heirs sign a Consent to Sale of Real Property form to waive formal court approval and permit the sale. This written consent should reference the legal description of the property and the agreed sale price.
See SDCL §29A-3-602: sdlegislature.gov/Statutes/Codified_Laws/2043764.
2. Direction for Distribution of Proceeds
After closing, the personal representative holds net proceeds in the estate account. To instruct how to allocate those funds, each heir signs a Direction for Distribution of Proceeds. This form specifies the heir’s share—often a percentage or specific dollar amount—and confirms agreement with the proposed division.
SDCL §29A-3-719 authorizes distribution by deed, check, or transfer upon beneficiary consent and proper documentation.
See SDCL §29A-3-719: sdlegislature.gov/Statutes/Codified_Laws/2043781.
3. Receipt and Release of Personal Representative
To protect the personal representative from future claims, each heir executes a Receipt and Release form. This acknowledges receipt of the stipulated distribution and releases the personal representative from further liability concerning that asset.
This step is standard under SDCL §29A-3-719 and ensures finality in estate administration.
Optional: Family Settlement Agreement
If all heirs agree on terms of sale and distribution, they can enter a Family Settlement Agreement under SDCL §29A-3-708. This out-of-court contract can resolve disputes, direct distributions, and lift the need for separate court orders.
See SDCL §29A-3-708: sdlegislature.gov/Statutes/Codified_Laws/2043770.
Helpful Hints
- Review forms before signing. Ensure legal descriptions and dollar amounts match closing statements.
- Keep original signed documents. File copies with the probate court and estate files.
- Use certified mail or hand-delivery and track receipts to confirm timely execution.
- Consider a brief consultation with a probate attorney to confirm form sufficiency and avoid delays.
- Check for additional county requirements—some registers of deeds may require specific acknowledgments.