Steps to Bring Real Property into an Estate in South Dakota
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance on your specific situation.
Detailed Answer
When a person dies owning real property in South Dakota, a personal representative must follow specific steps to include that property in the estate and use it to pay valid claims. Below is an overview of the key stages under South Dakota law:
1. Open Probate
The personal representative (formerly “executor” or “administrator”) begins by filing a petition in the county where the decedent lived. If there is a will, file for probate under SDCL 29A-3-301. If intestate, petition under SDCL 29A-3-302. Once approved, the court issues Letters Testamentary or Letters of Administration per SDCL 29A-3-502.
2. Provide Notice to Creditors
Within three months after appointment, publish a notice to creditors in a local newspaper and send mailed notice to known creditors. These steps comply with SDCL 29A-3-317. This establishes a deadline for filing claims against the estate.
3. Inventory and Appraise the Estate
Within 90 days of appointment, prepare and file an inventory of all estate assets, including real property values. Follow the requirements under SDCL 29A-7-301. An accurate appraisal helps determine if a sale is necessary to satisfy debts.
4. Record Letters of Administration
To vest title control and allow the representative to manage or sell real property, record the Letters Testamentary or Administration with the county Register of Deeds where the property lies. This public filing notifies title holders and lienholders that the estate now controls the asset.
5. Manage or Sell the Property
If the estate has sufficient cash, the property may remain in place. Otherwise, the representative may petition the court to sell real property under SDCL 29A-7-707. The court will review the sale terms and authorize the sale to pay claims.
6. Pay Claims and Distribute Remaining Assets
After sale, the representative pays validated creditor claims in priority order set forth in SDCL 29A-7-603. Any leftover funds distribute to heirs or beneficiaries according to the will or state intestacy rules.
Helpful Hints
- Keep detailed records of all filings, notices, and payments.
- Get a professional appraisal to support fair market value.
- Confirm publication requirements with the county clerk’s office.
- Consider short-term financing if property sale will be delayed.
- Communicate regularly with creditors to reduce disputes.
- Consult a probate attorney for complex estates or contested claims.