South Dakota law permits collection and distribution of small estates under $100,000 by affidavit. Section 29A-3-1201 of the South Dakota Codified Laws provides that after thirty days have elapsed since the decedent’s death, any person indebted to the decedent shall make payment of the indebtedness to a person claiming to be a successor of the decedent upon being presented an affidavit made by or on behalf of the successor.

The affidavit must state that:

1. 1. 

   The value of the entire estate, wherever located, less liens and encumbrances, does not exceed $100,000;

2. 2. 

   Thirty (30) days have elapsed since the death of the decedent;

3. 3. 

   No application or petition for the appointment of a personal representative is pending or has been granted in any jurisdiction;

4. 4. 

   The decedent has not incurred any indebtedness to the Department of Social Services for medical assistance for nursing home or other medical institutional care; and

5. 5. 

   The claiming successor is entitled to payment.

S.D. Codified Laws § 29A-3-1201.

We must review the affidavit to ensure that the individual requesting payment of an underpayment meets the requirements in this section.

We must also ensure that the underpayment would not push the estate over the $100,000 threshold, which may invalidate the small estate process, refer to GN 02315.025.

An SSA underpayment is not excluded when calculating the value of the estate. S.D. Codified Laws § 29A-3-1201. Therefore, we may ask the individual for a general estate inventory to determine whether the value of the assets of the decedent’s estate, including the underpayment, is within the $100,000 threshold.

Under South Dakota law, the effect of the successor affidavit is that the person paying debts to a successor named in the affidavit is discharged and released from liability to the same extent as if dealing with a personal representative. The person making payment is not required to inquire into the truth of any statement in the affidavit. S.D. Codified Laws § 29A-3-1202. Therefore, if a successor presents us an affidavit meeting the criteria in GN 02315.080B, payment of an underpayment discharges the debt under state law.