For young families in South Dakota, the importance of managing your assets after death - for the benefit of your young children - cannot be overemphasized. If something would happen to both you and your spouse, and your young children remain as the family's only survivors, it is necessary for you to designate the person who will manage your remaining assets. If this step is not taken, a South Dakota court will step in and direct how your property will be handled on behalf of your young children. Also, if your Last Will & Testament does not detail how assets should be managed for your young children, the State of South Dakota will be forced to act - leading to additional expenses and burdens. However, this unfortunate situation can be alleviated with some simple estate planning techniques.
The best example may be to leave the assets to your young children in a trust in which the children are named the beneficiaries. The assets will then be managed by a person that you choose for the benefit of your young children. The person nominated by you will be under a legal and fiduciary obligation to administer the assets for your children’s benefit and as you have set forth in your trust document. As your children reach a mature age, the assets can then be distributed to your children from the trust.