If a person dies without a will (intestate)—and with no heirs (relatives or descendants)—ownership of the deceased person’s (decedent’s) property may be transferred to (or said to revert to) the state government (usually the state treasury) through the common law doctrine of escheat. In addition to enriching the state treasury (or the Lord in feudal England), escheat prevents property from remaining in limbo with no rightful owner.

A state’s common law is comprised of court opinions written by judges to resolve disputes and most states adopted the legal doctrine of escheat from the English common law (from England) soon after the founding of the United States and each state’s admission to the union. But in more recent years many state legislatures have defined the law of escheat in their state’s statutes—making it statutory law—which is also known as codifying the law, because it is then part of a code or statute.

The property subject to escheat laws is sometimes referred to or classified as unclaimed or abandoned property. Upon transfer to the government the unclaimed or abandoned property may be referred to as escheated property. And in some states there may be a period (a statute of limitations) in which heirs or rightful owners of the property may be able to reclaim escheated property.

Escheat laws vary from state to state and often depend on the nature of the asset involved (personal property, real property, bank account, brokerage account).

In South Dakota, if a person dies intestate (without a will) and has no identifiable heirs, the property of the deceased may escheat, or revert, to the state. This process is governed by South Dakota Codified Laws (SDCL), which have codified the common law doctrine of escheat. According to SDCL 29A-1-107, if no heir or devisee can be found, the estate is distributed to the state's school fund. The state holds the escheated property, which can include various types of assets such as personal property, real estate, and financial accounts. South Dakota law provides a mechanism for potential heirs to claim escheated property within a certain time frame, typically within five years from the date of the Treasurer's receipt of the property, as per SDCL 43-41B-48. After this period, the claimant may be barred from recovering the property. It is important for individuals to consult with an attorney to understand the specific implications of escheat laws on an estate and the process for claiming escheated property in South Dakota.