Which statements and financial documents are required for annual and final probate accountings in South Dakota (SD)?

Detailed Answer — What statements and financial documents are required for annual and final probate accountings in South Dakota

This FAQ explains, in plain language, what a personal representative (executor or administrator) typically must include when the court requires an annual accounting or a final accounting in a South Dakota probate estate. This is an educational overview only and not legal advice.

What is a probate accounting?

A probate accounting is a formal financial report the personal representative gives to the court and interested persons showing how estate assets were handled during a stated period (annual) or for the entire administration (final). The accounting lets the court and beneficiaries verify receipts, disbursements, taxes, fees, and the property left to distribute.

Where the law is found

South Dakota follows the Uniform Probate Code provisions found in Title 29A of the South Dakota Codified Laws. Relevant provisions for estate administration and accountings are in the statutes governing administration of decedents’ estates. See South Dakota Codified Laws, Title 29A (Probate):
https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute?Type=Title&Title=29A.

Who must file an accounting and when?

The personal representative files accountings when the court orders one or when beneficiaries request an accounting and the court grants it. The court also requires a final accounting before closing an estate.
An annual accounting covers a one-year period (or other period the court sets) and shows activity during that time. The final accounting covers the entire administration from appointment through closing.

Core contents required in a probate accounting

A proper accounting normally includes the following sections and supporting documents. The court expects clear, accurate, and verifiable records.

1. Caption and identifying information

Court name, county, probate case number.
Name of decedent, date of death (if known), name of personal representative, and period covered by the accounting.

2. Inventory and beginning balance

Itemized inventory of estate assets at the start of the accounting period (or at decedent’s death for a final account) with values. Include real property, bank and brokerage accounts, cash, stocks, retirement accounts, business interests, vehicles, and personal property.
Attach appraisals for items that require valuation (real property, antiques, jewelry) where the value is disputed or significant.

3. Detailed schedule of receipts

All receipts during the period: sale proceeds, rents, interest/dividends, bond/stock proceeds, insurance proceeds, retirement distributions, refunds, and transfers into estate accounts.
Provide supporting bank statements, brokerage statements, check deposit records, settlement statements from sales (e.g., HUD/closing statements), and copies of checks or electronic transfer records.

4. Detailed schedule of disbursements

All payments from estate funds: funeral and burial expenses, creditor payments (with claim numbers and court allowance status), taxes (estate and income), administration expenses, attorney fees, accounting fees, bond premiums, repairs, and distributions to beneficiaries.
Attach invoices, paid bills, cancelled checks or check images, bank statements showing the payments, receipts, and any court orders approving fees or payments.

5. Reconciliation and ending balance

Show starting cash/bank balances, total receipts, total disbursements, and ending balances. The numbers must reconcile with bank and brokerage statements.
List assets remaining on hand at the end of the accounting period and their values.

6. Schedule of proposed distributions (final accounting)

For a final accounting, include a proposed plan of distribution: who will receive what, specific bequests, residue distribution, and amounts or property to be transferred.
Attach deeds, assignments, transfer documents, or consent forms needed to transfer property to beneficiaries.

7. Statements under oath and verification

The accounting is generally signed and sworn to by the personal representative (or verified) stating the account is true and complete to the best of their knowledge. Include a verification or affidavit as required by the court.

8. Supporting exhibits and documentary proof

Common required supporting documents include:

Bank and brokerage statements covering the accounting period(s).
Cancelled checks or check images and deposit records.
Invoices, receipts, paid bills for administration expenses and funeral costs.
Copies of accepted creditor claims or court orders resolving claims.
Appraisals for significant non-cash assets or valuations when required.
Real estate closing statements or deeds for sales or transfers.
Tax returns for decedent (final personal income tax returns) and Form 1041 (estate income tax) if filed; proof of payment of estate or income taxes; correspondence with tax authorities if applicable.
Documentation of notice to interested persons and proof of service (beneficiaries, creditors, heirs), and proof of publication if required.
Copies of letters testamentary/administration, the will (if probated), and any court orders authorizing extraordinary actions (e.g., sale of real property, payment of attorney fees).

9. Accounting of fiduciary fees and attorney fees

List any commissions or compensation requested by the personal representative and attorney fees. Provide time records, fee petitions, retainer agreement, and the statutory or court-approved basis for fees. The court will review reasonableness before approval.

Format and filing procedure

South Dakota courts expect a clear, organized filing. Common best practices:

Prepare a short cover summary showing totals (beginning balance, receipts, disbursements, ending balance, distributions proposed).
Number pages and exhibits. Mark sequences of supporting documents to correspond to line items in the accounting.
File the original verified accounting and required number of copies with the clerk of courts, and formally serve copies on all interested persons per the court’s rules. The South Dakota statutes and local court rules govern service and filing specifics (see SD Title 29A).

Common issues that trigger court questions or objections

Missing or unexplained receipts or payments.
Unreconciled bank statements or unexplained changes in principal values.
Failure to produce supporting vouchers (invoices, canceled checks) for significant disbursements.
Requests for large fiduciary or attorney fees without backup documentation or court approval.
Lack of proof that creditors were properly noticed or that claims were allowed/disallowed by the court.

Short checklist — documents to collect before drafting an accounting

Certified copy of letters testamentary/administration and the will (if probated).
Complete bank and brokerage statements for the period(s).
Copies of all paid checks (or images), deposit slips, and wire transfer confirmations.
Invoices and receipts for funeral, medical, and administration expenses.
Appraisals and sale closing statements for sold assets.
Documentation of creditor notices and claims.
Tax returns and proof of tax payments.
Documents evidencing proposed transfers to beneficiaries (deeds, stock transfers).

When an attorney’s help is wise

Because accountings become part of the court record and beneficiaries may object, many personal representatives retain probate counsel to:

Prepare the accounting in the format the court prefers.
Assemble and index supporting vouchers and exhibits.
File required petitions, notices, and proposed orders to close the estate.
Resolve creditor claims, tax issues, or beneficiary disputes that could delay closing.

Useful references and forms

Check the South Dakota statutes and local court forms for required wording, verification language, and service rules. See Title 29A — South Dakota Probate Code for statutory guidance:
SDCL Title 29A (Probate).

Bottom line

The court expects a complete, verified accounting that reconciles cash and property, lists receipts and disbursements with supporting vouchers, and shows the assets remaining to distribute (with a clear distribution plan for a final account). Collect bank/broker statements, canceled checks, invoices, appraisals, tax filings, and proof of notices before filing. If you are uncertain about required forms or how to present sensitive material, consult a probate attorney or the clerk of the county court handling the estate.

Disclaimer: This content is for general informational purposes and educational use only. It is not legal advice and does not create an attorney-client relationship. For advice specific to your situation, consult a licensed South Dakota probate attorney.

Helpful Hints

Start record-keeping immediately after appointment: maintaining running ledgers and keeping original receipts saves time and reduces objections.
Prepare a short two-page summary (beginning balance, totals, ending balance, distributions) to accompany longer supporting exhibits for judges and beneficiaries.
Keep a separate estate bank account. Mixing personal and estate funds creates accounting problems and may lead to court scrutiny.
Number and label exhibits so each line item in the accounting points to a specific supporting document.
Redact sensitive personal information (full bank account numbers) on copies served to beneficiaries, but keep unredacted originals for the court if required.
If the estate is small or straightforward, ask the court whether a simplified or summary procedure is available — it can reduce paperwork and fees.
If beneficiaries ask for detailed proof, provide copies or invite inspection of vouchers rather than resisting; cooperation often prevents contested hearings.
When large or unusual transactions occur (selling real estate, transferring business interests, large gifts), get court approval in advance when possible to avoid later objections.

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