South Dakota Probate Inventory Requirements

Three months. That is how long you have after being appointed as personal representative to produce a comprehensive inventory of every probate asset in the estate, listed at fair market value as of the date of death. Miss this deadline under SDCL 29A-3-706, and you risk the court questioning your competence — or worse, requiring a costly surety bond.

The inventory is one of the most important documents you will produce during South Dakota probate. It establishes the baseline for everything that follows: creditor claim resolution, tax filings, executor compensation, and the final distribution to heirs.

What Goes on the Inventory

The inventory must include all assets that are part of the probate estate — property that was solely owned by the deceased with no automatic transfer mechanism. This includes:

• Bank accounts in the deceased's name alone (checking, savings, CDs without payable-on-death designations)
• Investment accounts solely owned (brokerage accounts, stocks, bonds, mutual funds without TOD beneficiaries)
• Real estate held solely in the deceased's name (no joint tenancy, no transfer-on-death deed)
• Vehicles titled solely to the deceased (no TOD beneficiary designation)
• Personal property of value — jewelry, art, firearms, collections, tools, equipment
• Business interests — sole proprietorships, partnership shares, LLC membership interests
• Money owed to the deceased — promissory notes, pending lawsuit settlements, outstanding loans

What Does Not Go on the Inventory

Equally important is knowing what to exclude. These assets pass outside of probate and are not part of your responsibility as personal representative:

• Joint tenancy property — passes automatically to the surviving joint tenant
• Life insurance with named beneficiaries
• Retirement accounts (401k, IRA) with designated beneficiaries
• Payable-on-death (POD) bank accounts
• Transfer-on-death (TOD) deeds on real estate
• Trust assets held in a revocable or irrevocable trust
• TOD vehicle designations (effective July 2025 in South Dakota)

In many South Dakota estates, particularly those where couples held everything jointly, the probate estate is actually quite small because most assets pass outside of probate.

Valuation Rules

Every asset on the inventory must be listed at its fair market value as of the exact date of death — not the date you discovered it, not current value, and not the purchase price.

For most financial assets, this is straightforward. Bank balances are fixed, publicly traded stocks have a daily closing price, and vehicle values can be determined from standard pricing guides.

Real estate and agricultural land require more attention. South Dakota has a specific valuation distinction that matters for small estate thresholds:

• Non-agricultural real estate is valued using the county assessment rolls for the year of death
• Agricultural real estate must be valued at fair market value on the date of death

This distinction is critical because county tax assessments on farmland typically undervalue the property significantly. A quarter section assessed at $40,000 for property tax purposes might have a fair market value of $200,000 or more. For inventory purposes, you need the fair market value — and that often means hiring a professional appraiser.

The South Dakota Probate Process Guide includes an inventory worksheet template that helps you organize assets by category and track the valuation method used for each.

When to Use Appraisers

SDCL 29A-3-706 authorizes the personal representative to employ qualified appraisers to assist with assets that lack readily ascertainable market values. You should consider professional appraisals for:

• Agricultural real estate — the fair market value requirement makes this almost mandatory for farmland
• Mineral rights — oil, gas, and gravel rights require specialized valuation
• Closely held business interests — partnership shares, LLC membership, or sole proprietorships
• Valuable personal property — art, antiques, rare collections, specialized equipment
• Commercial or rental real estate — investment properties that require market analysis

Appraisal fees are administrative expenses paid from the estate and receive the highest priority in the creditor payment hierarchy.

Filing and Sharing the Inventory

Here is where South Dakota differs from many states: filing the inventory with the court is optional. You are not required to submit it to the circuit court unless you choose to do so.

However, you must promptly mail or deliver a copy to any interested person who requests one. If you do voluntarily file the inventory with the court, you must send copies to interested persons within fourteen days of filing.

"Interested persons" includes all heirs, devisees named in the will, and any creditor with a pending claim. In practice, at least one family member will ask to see the inventory, so prepare it as if it will be scrutinized.

Common Inventory Mistakes

Overlooking digital assets. Cryptocurrency accounts, online payment platforms, digital royalty streams, and online business accounts are probate assets if solely owned. Check email and financial records carefully.

Missing agricultural details. For farm estates, do not just list "the farm." Break it down: surface rights, mineral rights, water rights, crop inventory, livestock, stored grain, equipment, and CRP contracts are all separate assets.

Using the wrong valuation date. Everything must be valued as of the date of death, not when you found the asset or when you started the inventory.

Forgetting to update. If you discover additional assets after filing or sharing the inventory, you have a duty to supplement it. Omitting known assets from the inventory is a breach of fiduciary duty.

Meeting the Deadline

Three months goes quickly, especially when you are simultaneously arranging funeral services, managing creditor communications, and dealing with family dynamics. Start the inventory process in the first week after your appointment, not the last month.

The South Dakota Probate Process Guide provides a complete timeline and inventory checklist that helps you track every asset category, meet the three-month deadline, and produce a thorough accounting that protects you from liability.

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