The minor child reaches age 18.South Dakota does not have a state income tax.
While South Dakota is a common law state, couples can opt in to community property through the use of a community property trust.
South Dakota does not impose an inheritance tax.
South Dakota imposes an estate tax equal to the maximum credit allowed under the federal tax code for paid state estate and inheritance taxes under IRC Sec. 2011. However, the current federal tax code does not permit a credit for paid state estate or inheritance taxes. Therefore, there is no credit estate tax in effect at this time.
South Dakota does not impose a GST tax.
South Dakota does not impose a gift tax.
The minimum age of a person competent to make a will is 18.
The number of witnesses necessary to execute a will is two.
The original custodial gift may be a life insurance policy or annuity contract.
Custodial property may be invested in or used to pay premiums on (1) a policy on the minor's life if the minor's estate is the sole beneficiary, or (2) a policy on a third party in whom the minor has an insurable interest, if the minor or the custodian is the irrevocable beneficiary.
The custodial arrangement terminates when:
The minor child reaches age 18.
The minor child dies.
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Each state describes its own distribution pattern of how property passes to a decedent's spouse, children, parents and siblings. If no such individuals are living, state laws specify other takers among more distant ancestors before awarding property to the state through "escheat" provisions. We do not trace devolution of property beyond those noted above, but cite appropriate statutes for those interested in additional detail.
Many states refer to their distribution regime by simply stating that the heirs of predeceased individuals take "by representation." We use only the statutory verbiage, but may cite other statutory guidance when it exists.
States vary in the way they refer to descendants, using such terms as "issue" or simply children or grandchildren. We use the term "descendant," unless usage of different term adds clarity.
Some states address situations where misconduct or abuse causes forfeiture of a right to receive a share of the estate. Those interested in this information should see the state statutes.
The estate goes to the surviving spouse, as follows:
If there are no surviving descendants—100% of the estate
If all surviving descendants are also descendants of the spouse—100% of the estate
If one or more of the decedent's surviving descendants are not descendants of the spouse—the first $100,000 plus 50% of the balance of the estate
If there is no surviving spouse, or if a portion of the estate does not go to the spouse:
100% to descendants by representation (see SDCL §29A‐2‐106)
If there is no surviving spouse or descendant:
100% to surviving parent or parents equally
If there is no surviving spouse, descendant or parent:
100% to the descendants of the decedent's parents (or the descendants of either parent) by representation (see SDCL §29A‐2‐106)
If none of the above:
Intestacy laws outline further distribution steps to the level of grandparents, then deceased spouses and descendants. See SDCL 29A‐2‐103(4).
If no legally described recipient can be found, estate assets go to the state of South Dakota.
Click here for more information on intestacy.
Non-qualified Annuities: $250 per month of total benefits are protected.
Life Insurance Cash Value: Exempt from creditors of both the insured and the beneficiary up to $10,000 if the beneficiary is the estate and the decedent is survived by a spouse or children. Exemption increases to $20,000 if the beneficiary is directly a spouse or child.
Life Insurance Proceeds: Exempt from creditors of both the insured and the beneficiary up to $10,000 if the beneficiary is the estate and the decedent is survived by a spouse or children. Exemption increases to $20,000 if the beneficiary is directly a spouse or child.
Digital Assets: South Dakota follows the Uniform Fiduciary Access to Digital Assets Act to ensure that testators can retain control of their digital property and plan for its ultimate disposition.
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