Detailed Answer — step‑by‑step guide under South Dakota law

Note: This is educational information only and is not legal advice. You should consult a South Dakota probate attorney about your specific case.

When you are the executor (personal representative) of an estate in South Dakota and the estate lacks enough cash to pay debts, you may need to sell real property (a house, land, or other real estate) to raise funds. Below is a practical, step‑by‑step outline of the typical process under South Dakota probate practice and statute. Use this as a roadmap — your county court and the exact terms of the will (if any) will affect the process.

1. Confirm your authority.

   First, confirm you have been formally appointed and qualified as the personal representative by the county probate court. The court issues letters testamentary or letters of administration that show your authority to act. If you have not been appointed, you cannot legally sell estate property.

2. Read the will and check for sale authorization.

   If the will expressly authorizes the personal representative to sell real property, that often simplifies the process. If the will is silent or restricts sale, you will typically need court approval before selling.

3. Inventory and valuate estate assets.

   Prepare an inventory of estate assets, including appraisals or estimates of market value for the real property. Document outstanding secured debts (mortgage, tax liens) and unsecured debts (creditors’ claims).

4. Determine whether a sale is necessary.

   Decide whether the estate must sell property to pay administrative costs, funeral bills, taxes, or creditor claims. Sometimes debts can be paid from bank accounts or by selling other assets first. Selling real property is often a last resort if liquid assets are insufficient.

5. Comply with creditor notice and claim periods.

   South Dakota law requires notice to creditors and provides deadlines for filing claims against the estate. You must follow the statutory procedures for publishing notice and accepting or rejecting claims. Check the probate court instructions in your county and the South Dakota probate statutes (see resources below) for specific timing and notice requirements.

6. Get an appraisal and prepare a plan of sale.

   Obtain a reliable appraisal or broker opinion of value. Prepare a plan: listing price, whether to sell at auction, whether to accept offers subject to court approval, and how sale proceeds will be used (pay secured lenders, pay creditor claims, pay expenses, distribute remainder).

7. Petition the probate court for authority to sell (when needed).

   If the will does not clearly allow a sale or if the property must be sold free of a devisee’s interest, file a petition with the probate court asking for an order authorizing the sale. The petition should describe the property, explain why the sale is necessary or advisable, present the proposed sale terms (or request authority to sell on market terms), and identify affected parties.

   The court may schedule a hearing and will require notice to heirs, beneficiaries, and other interested persons. If the property is encumbered by a mortgage or lien, the sale may need procedures to address the secured creditor’s interest.

8. Provide notice and obtain court order or authority.

   Follow any required notice procedures for the hearing on the sale petition. If the judge approves, obtain a written court order authorizing the sale and specifying any conditions (for example, minimum bid, sale method, or distribution rules).

9. Market and sell the property.

   List the property (or arrange an auction), accept offers, and proceed to a sale consistent with the court order. If the court ordered that offers be submitted for approval, present the highest (or best) offer to the court for confirmation.

10. Close the sale and handle encumbrances.

    At closing, use sale proceeds to pay off mortgages, liens, closing costs, estate administration costs, and approved creditor claims in the statutory priority order. Keep thorough records and obtain lien releases and a recorded deed reflecting the sale.

11. Account to the court and distribute remaining funds.

    File a final accounting or a petition for distribution with the probate court showing receipts and disbursements. After the court approves the accounting and all debts are paid, distribute any remaining funds to beneficiaries per the will or intestacy rules.

12. Recordkeeping and closing the estate.

    Keep copies of the court order authorizing the sale, closing documents, receipts for payments to creditors, and the final court distribution. When all steps are complete, petition the court to close the estate if required.

Hypothetical example

Suppose an estate includes a house worth $200,000 with a $50,000 mortgage and the estate only holds $10,000 in cash. As personal representative you would:

• Confirm your appointment and the will’s terms;
• Appraise the house; determine sale proceeds after paying the mortgage and closing costs;
• Publish creditor notice and wait applicable claim period;
• File a petition asking the probate court to authorize sale to pay debts and administrative costs;
• Market and sell the house under court authority; use proceeds to pay the mortgage, estate expenses, and approved creditor claims; then distribute remaining funds to beneficiaries under the will.

Statutes and official resources

For the exact statutory language and timelines in South Dakota, review the South Dakota Codified Laws on probate and administration and the probate forms published by the South Dakota Unified Judicial System:

• South Dakota Codified Laws (probate/administration chapters): https://sdlegislature.gov/Statutes/Codified_Laws/
• South Dakota Unified Judicial System – Probate Forms and instructions: https://ujs.sd.gov/Forms/Probate

Because probate procedure and required notices can vary between counties and depending on whether the case is supervised or unsupervised administration, review local court rules and the statutes before acting.

Helpful Hints

• Start by obtaining the official letters testamentary/administration from the probate court — you cannot act without them.
• Keep beneficiaries and heirs informed in writing: transparency reduces disputes.
• Obtain a professional appraisal rather than relying only on a realtor opinion when values are contested.
• Address secured debts first (mortgages and tax liens). They typically survive to the property and must be paid or satisfied at closing.
• Keep meticulous records of every payment and step — you will need them for the final accounting and to protect against beneficiary complaints.
• If a beneficiary wants to keep the property, they can sometimes buy it from the estate at fair market value with court approval; document the process to avoid claims of preferential treatment.
• Get legal help early if creditors threaten litigation or if beneficiaries dispute the sale — contested sales require more protective steps and careful court pleading.
• Expect the probate process (including sale approvals) to take weeks to months depending on notice periods and court schedules.

Again — this information is educational only and not legal advice. For guidance tailored to your situation, contact a probate attorney licensed in South Dakota or consult the county probate clerk for local procedures.