Create a Living Trust in South Dakota

A living trust in South Dakota allows you to continue to have possession of your assets while they are owned in trust during your life. They are then distributed after your death according to your wishes. A revocable living trust (sometimes known as an inter vivos trust) can be an important estate planning tool.

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create a living trust in south dakota

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Updated on: February 6, 2024
Read time: 4 min

A living trust in South Dakota allows you to continue to have possession of your assets while they are owned in trust during your life. They are then distributed after your death according to your wishes. A revocable living trust (sometimes known as an inter vivos trust) can be an important estate planning tool.

Living trusts in South Dakota

When you choose to establish a South Dakota living trust, you are the trust’s grantor and you will create it and place ownership of your assets into the trust. It is generally most beneficial to place as many assets as possible into the trust. Some, such as life insurance or retirement accounts, cannot be transferred to a trust. The assets in the trust will be managed for your benefit during your life by the trustee. You can select anyone you wish to be your trustee, but most people simply select themselves. If you choose yourself, you will also need a successor trustee who can take over after your death. At that point, the trustee will continue to manage and protect the assets and distribute them to your beneficiaries after your death (as per your instructions). A revocable trust can be altered at any time while an irrevocable living trust is permanent.

Your living trust South Dakota allows you to avoid probate for all trust assets. Probate is a court procedure required for all wills. The court must approve and enact the will’s provisions. This can take months and can be expensive, involving court fees as well as the costs of an attorney and executor. Assets passed through a will cannot be transferred to the beneficiaries until the probate process concludes. A trust, however, can be effective immediately with no court oversight. Your trust allows you to bypass probate in any states in which you own property.

South Dakota uses the Uniform Probate Code, so its probate procedures are somewhat streamlined if you choose to use probate. There is also a faster small estate procedure available for estates valued at less than $50,000. This process is less expensive than creating a trust, but does not offer any trust benefits.

In South Dakota, a surviving spouse has what is called a right of election. This allows a spouse to claim a percentage of the deceased spouse’s estate even if the survivor has been disinherited. Assets in a living trust are subject to the right of election in South Dakota.

Do I need a living trust in South Dakota?

Living trusts provide a variety of benefits that may appeal to you. Creating a living trust in South Dakota gives you control over your assets during life and after death. While your assets are owned in the name of the trust, you will continue to use them as you normally would, so nothing in your daily life changes. After your death, the assets are protected, managed by the trust, and distributed to your beneficiaries at the specific dates you select. Assets can be transferred immediately after death or at some point in the future that you choose. It is common to keep assets in the trust until beneficiaries reach specific ages. This contrasts with a will which must distribute assets at one point in time as soon as probate concludes.

A living trust offers a veil of privacy for your affairs. The trust is never public record, unlike a will that enters the public record when it is probated. The assets in the trust, the terms of the trust, and the names of the beneficiaries and their inheritances are not disclosed. Trusts are also more challenging to contest, keeping your directives intact.

Your revocable living trust protects you should you become mentally incapacitated. All of your assets are already controlled, owned, and managed by the trust, and a conservatorship proceeding is likely unnecessary. While a durable power of attorney can be rejected, a trust cannot be. Your financial life is protected by the trust.

Living trusts and estate taxes in South Dakota

While there is no estate or inheritance tax in South Dakota, the federal estate tax applies to estates worth more than $5 million. Living trust assets are counted towards this. It is possible to avoid estate tax using a specially constructed trust known as a marital trust (sometimes called an AB trust or QTIP trust). A marital trust passes assets from a deceased spouse to the surviving spouse without incurring tax. Your living trust will not be shielded when computing your eligibility for Medicaid and it can’t hide assets from your creditors.

How to create a living trust in South Dakota

If you would like to create a living trust in South Dakota, you need to create a written trust agreement and sign it before a notary public. To make the trust effective, you must transfer your assets into it. A revocable living trust is a popular estate planning option. It may be an option that will work for you.

If you are ready to create a South Dakota living trust, LegalZoom can help. Get started by answering a few simple questions. LegalZoom will review your answers and send your complete living trust package by mail.

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This article is for informational purposes. This content is not legal advice, it is the expression of the author and has not been evaluated by LegalZoom for accuracy or changes in the law.

52 days ago
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Grateful to Patti Green

Patti Green helped me so much to finish my order. She was very patient and pleasant with me and guided me so well with my living trust. She made it clear and explained things that I could understand to finish this. She is an asset to your company and I would recommend her with excellence

CU
54 days ago
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I had no Idea what to do to update my…

I had no Idea what to do to update my Living Trust. They answered all my questions and they also helped me get info I did not know I needed.

Bryan Q
60 days ago
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Living Trust Premium

Our Representative, Stormy was fantastic! She stayed with us through the whole process. She was very helpful and thorough.

sremeikis
68 days ago
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I spoke to the representative today about a Trust...

I spoke to the representative today regarding a question about an existing Living Trust. She was very helpful - told me exactly what I needed to know and how to accomplish it. As a representative in the Financial field I guide clients all the time on where to get documents done right - and its always LegalZoom - easy and effecient!

Gareth
70 days ago
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LegalZoom

I was impressed by the user-friendly interface and the outstanding support I received while creating a Revocable Living Trust. The ability to connect with support representatives in real time to address my questions was incredibly valuable. For those looking to establish a straightforward trust, I can highly recommend LegalZoom.

TDM
76 days ago
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Rida has been very helpful with respect…

Rida has been very helpful with respect o guiding me through the process of properly revising the Living trust for my elderly parents. His patience has been exemplary.

Frantz Michel
84 days ago
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Elizabeth Tisdale

Elizabeth Tisdale, knowledgeable,been having problems with the forms in my living trust,for the past two weeks and had to pay every time, Elizabeth was patient with me and explained every detail until it was corrected,she get my 5 stars

MARIA CORONA
84 days ago
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Taking the Initiative

Taking the initiative to do the info. research on our living Trust...set up back in 2016..Made the call an efficient, as well as a pleasant experience. Very thorough and friendly. Set up our atty consultation Thanks for great service!

Vicki Switzer
91 days ago
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Carmen was so patient with me

Carmen was so patient with me! Thank you for all your direction and guidance with my living Trust! Great job!

Tina Garcia
94 days ago
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Tammy was wonderful and very…

Tammy was wonderful and very knowledgeable. It's because of her that I am going to open a living trust with legal zoom. She was great. Thank You

Erin
102 days ago
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Pleasant Experience

Patience and weel given explanation about the process of how a "Living Trust" & "Deed" works after transitioning and guidance on how to contact an attorney whenever I need legal advice.

Sharron Martin
102 days ago
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Excellent LegalZoom Attorney

The LegalZoom attorney was extremely helpful in the "walk thru" assistance as I prepared the Living Trust document. The service was excellent.

customer
111 days ago
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Happy with my initial contact with Legal Zoom

Rebecca fully answered my questions about creating a living trust. She is friendly and professional, and with my mind at ease, I am looking forward to starting this process with Legal Zoom. I am confident that this will be the best route for me to take to make things a lot easier for my family when I'm gone. (And, easy for me!) I plan to be in touch in the next several weeks. Thanks, Rebecca!

Carol
129 days ago
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Michelle very professionally guided me…

Michelle very professionally guided me with her knowledge and amazing patience through the entire process of setting up my Living Trust. I am so relieved and grateful for her help. I have used LegalZoom before and you are my go to for legal advice. Thank you again Michelle.

Paula Bateman
137 days ago
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Quality Staff

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Ady Filipescu
146 days ago
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Really great job in guiding me to…

Really great job in guiding me to finish my living trust .

Ronnie Ball
152 days ago
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5 Stars

5 Stars – Outstanding Customer Service from Tammy at LegalZoom I had the pleasure of working with Tammy from LegalZoom regarding my living trust documents, and I couldn't be more impressed. She was professional, patient, and incredibly knowledgeable. Tammy took the time to walk me through every step, answered all my questions clearly, and made a complex process feel simple and stress-free. Her attention to detail and genuine care made all the difference. LegalZoom is lucky to have someone like her on their team. Thank you, Tammy!

Cn
152 days ago
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Ease and help of making changes to my…

Ease and help of making changes to my living trust. LegalZoom rep walked me through the process without any difficulties. Really like working with LegalZoom.

Gregory Bechtol
159 days ago
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Enjoyed working with Kevin to finalize…

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JOHN in CALIFORNIA
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