In some states the beneficiaries of a will may agree among themselves as to the distribution of the property left to them and agree not to probate the will. This is the family settlement doctrine—and is supported by the general principle that the property belongs to the beneficiaries under the will and since they may divide the property as they wish (by transfers made immediately after the distribution), there is no reason why they may not divide it by agreement before they receive it in the regular course of judicial administration of the estate.
For this reason—and because such agreements tend to put an end to family controversies by way of compromise—family settlement agreements are favored in law. And in some states a family settlement in which all the heirs and beneficiaries agree that a purported will shall not be probated is valid and enforceable.
Thus, a will can be contested on the grounds that the person offering the will for probate (proponent of the will) agreed in a family settlement agreement not to probate the will.
In South Dakota, the concept of informal probate or family settlement agreements is recognized and can be a practical alternative to formal probate proceedings. Under South Dakota law, beneficiaries of a will can enter into a family settlement agreement to distribute the decedent's property among themselves without going through the formal probate process. This is often done to avoid the time and expense associated with probate court proceedings. Such agreements are generally favored because they can resolve potential disputes amicably and expediently. However, it is important to ensure that all beneficiaries agree to the terms of the settlement and that the agreement is in compliance with South Dakota laws. If a family settlement agreement is in place, and it includes a provision that the will not be probated, this agreement can be enforceable, provided it is properly executed and all interested parties have consented. Beneficiaries considering a family settlement agreement should consult with an attorney to ensure that their rights are protected and that the agreement is legally sound.