Get Answers to Your Highest Priority South Dakota Legal Questions
Have questions? We have answers! Our South Dakota attorneys answer the questions they hear most often from clients just like you.
- Page 68
-
In South Dakota, what is "sole ownership" of property?
Under South Dakota law, there are a variety of ways to title property. Title is the method in which property is owned. How property is titled impacts the drafting of your estate plan. In South Dakota, title is commonly held in three different ways: sole ownership, joint tenancy, and tenancy in common.
The basic principle of sole ownership is that the property is owned by a single individual. The sole owner may use the property as he pleases and can distribute it to whomever he wants at his death through his will. However, if the sole owner dies intestate (without a will) the property will be distributed according to South Dakota's laws of intestate succession. The solely-owned property will be included in the gross estate and will continue through the probate process until title has been cleared for the heirs. If the sole owner has a will and appoints a personal representative, the personal representative will be responsible for distributing the property according to the will. However, if the sole owner dies without a will, the estate will have to wait until a personal representative is appointed by the Court.
-
What is the primary difference between a South Dakota Limited Liability Company (LLC) and a South Dakota Partnership?
The primary difference between a South Dakota Limited Liability Company (LLC) and a South Dakota Partnership is that the LLC owners are not personally liable for the company's debts and liabilities. In other words, any creditors of the LLC usually cannot go after the owners' personal assets to pay off LLC debts. However, partners do not usually receive this limited liability protection.
-
How is a South Dakota Limited Liability Company (LLC) taxed?
Just like sole proprietorships and partnerships, a South Dakota Limited Liability Company (LLC) is usually not considered a separate and distinct entity from its owners for tax purposes. This means that the LLC does not generally pay any income taxes itself. Rather, the LLC owners pay taxes on their share of profits (or deduct their share of business losses) on their personal tax returns.
-
How do I manage my South Dakota Limited Liability Company (LLC)?
The owners of most South Dakota LLCs participate equally in the management of their business. This particular arrangement is called "member management."
Unlike large corporations, LLCs have a straight-forward organizational structure, without officers or boards of directors. As a result, the LLC form is often chosen by people who want to be directly involved in managing and operating their business.
-
How Does My Business Form A South Dakota Limited Liability Company (LLC)?
To create a South Dakota LLC, your business must first file "Articles of Organization" with the South Dakota Secretary of State's Office. A filing fee of $150.00 must also accompany the filing of your Articles of Organization.
In addition to filing the Articles of Organization, your business should also create a written LLC "Operating Agreement." The Operating Agreement does not need to be filed with South Dakota Secretary of State's Office. However, the Operating Agreement is an important document because it explains the LLC members' rights and responsibilities, their percentage interests in the business, and their share of the profits.
-
What is a South Dakota Limited Liability Company?
A Limited Liability Company (LLC) is a business structure allowed by South Dakota law.
Owners of an LLC are called "members." South Dakota also permits “single-member” LLCs - those having only one owner.
-
What is a living will in South Dakota?
In South Dakota, a living will is a document that lets your doctor know the kind of life support treatment you want in case of terminal illness or injury, in the event you cannot otherwise communicate your wishes to your physician.
-
What is a living trust in South Dakota?
In South Dakota, a living trust gives instructions for the disposition of your assets after you die. However, unlike a traditional will, a living trust can also provide instructions in the event you become incapacitated before you die. After a living trust has been established, you transfer your assets to it by changing the titles and beneficiary designations of your assets to your trust.
-
In South Dakota, what is the five-year "look back" period for Medicaid?
When applying for Medicaid in South Dakota, the state will “look back” to see if any gifts have been made. South Dakota will not just let you give away your property or your money to qualify for Medicaid. Any gifts or transfers for less than fair market value that are made during the “look back” period may cause a delay in Medicaid eligibility.
-
In South Dakota, how does the five-year "look back" period work for Medicaid?
In 2006, the Deficit Reduction Act (“DRA”) changed the Medicaid rules. As a result, all transfers after February 8, 2006 are now subject to a 5-year "look back" period. If the gifts were made outside the "look back" period, then there is no disqualification period. However, if any gifts were made during the "look back" period, then Medicaid will not pay for nursing home care during the disqualification period. You should note that the disqualification period does not begin until the person actually moves to the nursing home and would otherwise be eligible for Medicaid. Also, if the assets are returned or partially returned, the disqualification period can be shortened or eliminated.