Legal Question in Wills and Trusts in South Dakota

Re: beneficiary

Why don't you engage a counsel of your own choice to prepare your last will and testament.

Re: beneficiary

The first thing you need to address is what legal entity is the business going to be held. Is it a C corporation, an S corp, and LLC or a sole proprietorship? Once that is decided, your next step is to determine how you want to distribute the business interest. You have a number of options. You could name your parents in your will as the heirs of those shares. If you want to transfer those interests without probating your estate you could consider designating your parents as beneficiaries of the business through a revocable trust.

Check with your attorney to see if South Dakota recognizes Transfer on Death (TOD) for closely held stock. This is the equivalent of payable on death which means the stock transfers directly to your parents at your death by titling the stock with TOD provisions.

I would not recommend joint tenancy with right of survivorship on a business interest. This can lead to undesirable consequences and be problematic for business financing.

I would urge you to seek local legal counsel as you need to assure your business is properly set up and that the provisions on your death are appropriate to the type of legal entity you have established for your business.

Re: beneficiary

The first thing you need to address is what legal entity is the business going to be held. Is it a C corporation, an S corp, and LLC or a sole proprietorship? Once that is decided, your next step is to determine how you want to distribute the business interest. You have a number of options. You could name your parents in your will as the heirs of those shares. If you want to transfer those interests without probating your estate you could consider designating your parents as beneficiaries of the business through a revocable trust.

Check with your attorney to see if South Dakota recognizes Transfer on Death (TOD) for closely held stock. This is the equivalent of payable on death which means the stock transfers directly to your parents at your death by titling the stock with TOD provisions.

I would not recommend joint tenancy with right of survivorship on a business interest. This can lead to undesirable consequences and be problematic for business financing.

I would urge you to seek local legal counsel as you need to assure your business is properly set up and that the provisions on your death are appropriate to the type of legal entity you have established for your business.