When do unclaimed estates escheat to the state in South Dakota?

In South Dakota, unclaimed estates escheat to the state at the direction of the governor or upon a formal legal report indicating that no rightful heirs can be located. This process involves a legal mechanism that ensures a proper review and detection of any potential heirs.

The reason this response is correct hinges on the state’s established legal procedures that prioritize finding legitimate claimants before any estate is turned over to the state. The requirement of a legal report indicates that there must be documentation substantiating the absence of heirs, ensuring due diligence is applied in searching for them.

In contrast to the other options, simply having a period of five years does not automatically result in escheatment without a legal basis to declare that the estate is truly unclaimed. Additionally, escheatment does not occur solely when there are no heirs identified; the process necessitates the state's involvement through governance procedures. Finally, while a court petition may play a role in some estates, the key mechanism for escheatment in South Dakota hinges primarily on a formal direction from the governor or after a detailed legal report is made. This underscores the importance of state oversight in managing unclaimed estates.