How beneficiary designations, payable-on-death (POD), and transfer-on-death (TOD) tools interact with a will under South Dakota law

Short answer: Yes — a TOD deed or POD designation can still matter even if your will leaves everything to your daughter. Wills control only property that passes through probate. Many common assets (bank accounts, retirement accounts, life insurance, certain real estate titled with a beneficiary form or joint owner, and securities with TOD registration) pass outside probate to whoever is named on the beneficiary designation or title. In practice, nonprobate designations generally override the directions in a will.

Detailed Answer

1. Probate vs. nonprobate transfers

Under South Dakota law, a will controls the distribution of probate property — the assets that are owned in your name alone at death and that do not have a valid beneficiary designation or survivorship title. Assets with beneficiary designations (POD or TOD), joint tenants with rights of survivorship, life insurance, and most retirement accounts usually transfer directly to the named beneficiary and bypass probate.

That means if you have an account with a valid POD or TOD designation naming someone else, that designation will generally determine who receives the asset, regardless of what your will says. Conversely, if you want a particular account or piece of real estate to go to your daughter without probate, a TOD deed or POD designation can accomplish that even if your will also names her.

2. Examples showing the difference

• Bank account with POD naming your daughter: The bank will pay the account to your daughter when you die (provided the bank’s rules and the designation are valid). The will does not change that.
• Retirement account or life insurance with a named beneficiary: These pass to the named beneficiary under the contract and plan rules, not by the will.
• Real estate owned solely by you: If you record a valid transfer-on-death (TOD) deed naming a beneficiary under the law that applies in South Dakota, the property will transfer directly to that beneficiary at your death, bypassing probate. If you do not use a TOD deed, the property goes through probate under the will.
• Joint tenancy with right of survivorship: The surviving joint tenant automatically owns the asset at death.

3. Why you might still want a TOD deed or POD designation even if your will names your daughter

• To avoid probate delay, attorney fees, and court costs for probate administration.
• To speed access to funds (banks and plan administrators often pay beneficiaries faster than probate distributes an estate).
• To ensure the exact asset (a particular bank account or parcel of real estate) goes directly to the intended person rather than becoming part of the probate estate where distribution could be affected by creditor claims or administration costs.
• To allow a different distribution for specific assets without changing your entire will.

4. Potential downsides and traps to watch for

• Beneficiary designations can produce unintended results if you forget to update them after life events (marriage, divorce, births, deaths). A will cannot override a valid beneficiary designation made after the will was executed.
• Nonprobate transfers may expose assets to beneficiary’s creditors once the asset passes.
• TOD deeds and beneficiary designations must meet formal requirements to be valid. a defective TOD deed or an improperly completed POD form may be ignored and the asset may go through probate according to your will or intestacy rules.
• Tax, Medicaid, and creditor consequences differ between probate and nonprobate transfers — simply naming a beneficiary does not eliminate potential claims or tax consequences.

5. How South Dakota law treats wills and nonprobate transfers

South Dakota’s probate statutes govern wills, estate administration, and distribution of probate assets. Beneficiary designations and properly executed nonprobate instruments operate outside the probate process and typically control who receives the asset at death. For an overview of the state probate code, see the South Dakota Codified Laws on probate (Title 29A): https://sdlegislature.gov/Statutes/Title29A.

6. Practical checklist — when to add or update TOD/POD designations

1. Inventory all of your assets (bank and brokerage accounts, retirement accounts, life insurance, real estate titles, vehicles, safe-deposit boxes).
2. Check current title and beneficiary designations for each asset.
3. If you want an asset to pass directly to your daughter (and not be governed by probate), add or confirm a beneficiary designation or record a TOD deed where available.
4. Keep beneficiary forms up to date and consistent with your overall estate plan.
5. Confirm the proper form and execution requirements for a TOD deed or beneficiary form in South Dakota (some instruments must be recorded or signed in specific ways to be valid).
6. Discuss tax, Medicaid, and creditor considerations with an attorney or qualified advisor before making changes.

When a will is enough

If your assets are small, or you prefer everything to pass through the probate process so a court-supervised procedure determines distribution, then a will naming your daughter may be sufficient. Probate can provide a clean legal title to property and an ordered administration of debts and claims. But wills do not avoid probate, and probate takes time and costs money.

When you should consult an attorney

Talk with an attorney if you have any of the following:

• Significant assets you want to avoid probate for.
• Complex family dynamics or potential disputes among heirs.
• Assets held in multiple states or titled in ways that create conflict between your will and beneficiary designations.
• Concerns about creditor claims, Medicaid planning, or tax consequences.

Helpful Hints

• Remember: beneficiary designations and TOD/POD arrangements usually trump a will for the specific asset.
• Keep an up-to-date inventory of titles and beneficiary designations; treat beneficiary forms as important estate documents.
• Record a TOD deed properly for real estate that you want to pass outside probate — recording rules matter.
• After major life events (marriage, divorce, birth, death), immediately review and update beneficiary designations and your will.
• Contact financial institutions or plan administrators to confirm their required POD/TOD form and procedures; each institution may have specific rules.
• Consider both probate avoidance and potential exposure to creditors or taxes when choosing between a will and nonprobate transfer tools.
• Keep copies of beneficiary forms and recorded TOD deeds with your estate planning documents, and tell your executor and your daughter where to find them.

Disclaimer: This article is for general informational purposes only and is not legal advice. It does not create an attorney-client relationship. If you need advice about your specific situation under South Dakota law, consult a licensed attorney in South Dakota.