New SD Law Simplifies Vehicle and Boat Transfers After Death

As of July 1, 2025, South Dakota's new law is in effect, offering residents a more streamlined and affordable way to transfer ownership of vehicles and boats after death. This change means that owners of motor vehicles, off-road vehicles, snowmobiles, and boats can now designate a beneficiary directly on the title. When the owner passes away, the title transfers to the named beneficiary without having to go through probate or small estate, saving time, legal hassle, and unnecessary expense for families.

To make use of the new law, all current owners of the titled asset must sign an application through the South Dakota Department of Revenue to name a beneficiary. This beneficiary can be a person or a trust. Upon the owner’s death, the beneficiary must submit a succession affidavit to claim the new title. The process is relatively simple and removes the need for a court proceeding or small estate administration, provided there are no liens or encumbrances on the title. If such financial obligations exist, the title cannot be transferred until they are cleared.

This option brings more flexibility and peace of mind to those doing their estate planning by making it easier to ensure that vehicles and boats end up in the right hands after death. Importantly, owners can change or revoke their chosen beneficiary at any time, offering additional control over how assets are passed on.  This is one example of a simple step to make it easier for loved ones after you are gone.

If you have questions about your plan or would like a review, give us a call at 605-275-5665.