Can I include a house I own outside South Dakota in my South Dakota will?
Short answer: Yes. You can name an out-of-state house in a will you sign under South Dakota law, but property law of the state where the house is located will control title and may require additional steps (often called ancillary probate) to transfer that house when you die.
Detailed answer — what you need to know
This answer explains how South Dakota wills work for property located in another state, the common pitfalls, and practical steps you can take now to make the transfer smoother when you die.
1. Wills in South Dakota: formalities
To make a valid South Dakota will, you must follow South Dakota’s formal execution rules. South Dakota’s probate laws (Title 29A of the South Dakota Codified Laws) set out those requirements, including signing and witness rules. See the South Dakota Codified Laws, Title 29A (Probate Code) for the statutory provisions on wills: https://sdlegislature.gov/Statutes/Codified_Laws.
Make sure your will is properly signed, witnessed, and (if you choose) self-proved to make later probate simpler. If the will does not meet state formalities, a court may refuse to probate it.
2. Real property is governed by the law of its location (situs)
Real estate is controlled by the law where the property sits. A South Dakota will can state your wishes about a house outside South Dakota, but the courts and recorder in the other state apply their own rules for transferring title. That often means the person you name in your South Dakota will will still need to open a probate or ancillary probate case in the state where the house is located to clear title.
3. Describe the property clearly
In the will, identify the house precisely so your intention is clear. Use the full legal description if possible, or lien-free parcel number and street address plus county and state. A sample clause:
“I give and devise to [beneficiary name] all my right, title, and interest in the real property located at [street address], [City], [County], [State], legally described as [full legal description or parcel number].”
Clear identification reduces disputes and speeds up the process in the state where the house is located.
4. Ancillary probate is common
If your South Dakota will leaves an out-of-state house to someone, that beneficiary will likely need to file for ancillary probate in the state where the house is located to transfer title into their name. Ancillary probate is generally simpler than a full probate, but it is an extra procedure, takes time, and costs money (attorney fees, court and filing fees, and possibly publication requirements).
5. Ways to avoid or reduce ancillary probate
- Transfer on Death / Beneficiary Deed: Some states allow a deed that names a beneficiary who receives title at death without probate. Check whether the state where the house sits has such a deed and whether you can create one now.
- Joint ownership with right of survivorship: Owning the property jointly with someone as joint tenants or tenants by the entirety (where available) passes title automatically to the survivor, avoiding probate. Consider the tax, creditor, and control implications before doing this.
- Revocable living trust: Put the property into a revocable trust and name successor beneficiaries. If the trust is properly funded and accepted in the property’s state, the successor can avoid probate. The trust should comply with the law of the state where the property is located and be recorded or otherwise established according to that state’s rules.
- Lifetime transfer: You can sell or gift the property during your lifetime, which avoids probate but has tax and Medicaid/benefit consequences.
6. Taxes and creditors
South Dakota has no state estate tax, but the state where the house is located might have estate or inheritance taxes or other transfer taxes. Federal estate tax can apply for large estates. Creditors can make claims in the decedent’s probate estate. Talk to counsel about possible tax and creditor exposure in both states.
7. Practical steps to take now
- Make a valid South Dakota will that clearly describes the out-of-state house and names beneficiaries and alternates.
- Obtain the full legal description and parcel number from the county assessor or deed to include in the will or an attached schedule.
- Consider alternative title arrangements (TOD deed, joint tenancy, trust) and check whether the state holding the house recognizes those devices.
- Keep the original deed and title documents in a safe but accessible place and tell your executor where they are.
- Consult an attorney licensed in the state where the house is located before relying on a strategy to avoid probate. That attorney can confirm local procedures and prepare any required documents (e.g., beneficiary deed or deed into a trust).
Examples of common scenarios
Here are a few hypothetical examples to illustrate how this plays out:
- If you live in South Dakota and your vacation home is in Florida, your South Dakota will can leave the Florida house to a named person, but that person will probably need to open ancillary probate in Florida (or use Florida’s homestead/transfer rules) to get clear title.
- If the other state allows transfer-on-death deeds and you create one for that house, the named beneficiary there may take title automatically on your death without probate in either state.
- If you put the out-of-state house into a properly funded revocable trust, the successor trustee may distribute the house without ancillary probate, but the trust must be valid and recognized in the state where the house is located.
Helpful hints
- Always identify out-of-state property by legal description and parcel number to avoid ambiguity.
- Keep deeds and title information with your estate planning papers and tell your executor where to find them.
- Ask whether the other state offers a beneficiary deed (TOD deed) — it can save time and money.
- Consider a revocable living trust if you own multiple properties in different states; it often reduces the need for ancillary probate.
- Before changing ownership (adding joint owners or transferring into a trust), understand tax, creditor, and Medicaid consequences in both states.
- Nominate a trusted, organized executor or successor trustee who knows where your documents and deeds are kept.
- Consult an attorney in the state where the property sits for title-transfer rules and a South Dakota attorney for will formalities and coordination.
Key resource: South Dakota Codified Laws (Probate Code, Title 29A): https://sdlegislature.gov/Statutes/Codified_Laws.
Final notes and disclaimer
This article explains general principles under South Dakota law about including out-of-state real estate in a South Dakota will. It is educational only and is not legal advice. Laws change and the result depends on the full facts and the law of the state where the house is located. For help tailored to your situation, consult a licensed attorney in South Dakota and an attorney in the state where the property is located.