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Learn the unclaimed property rules and their time limits for the state of South Dakota.
In South Dakota, all things relating to unclaimed property are handled by the Office of the State Treasurer.
South Dakota businesses have a number of responsibilities concerning unclaimed property. Initially, written notice must be sent to the apparent owner of the unclaimed property, if known. If the property remains unclaimed, businesses have a number of filing and reporting requirements to fulfill. Most importantly, businesses are required to turn over any and all unclaimed property to the state. Stiff penalties apply to businesses who fail to comply with any of these requirements.
Individuals should know that South Dakota property is generally presumed abandoned if it has remained unclaimed by the owner for more than five years after it becomes payable or distributable. However, this time limit varies depending on the type of property involved. Once abandoned property is turned over to the state by a business, an individual then has the burden of reclaiming it from the state.
In South Dakota, a holder of abandoned property must file a verified annual report containing information concerning the property required by the South Dakota State Treasurer. The report is due on or before November 1, as of June 30 (for insurance companies, it is due May 1, as of the preceding December 31).
The Treasurer accepts holder reports electronically using free software available at the following site: http://www.wagers.net/hrs/downloads.php.
The Treasurer may require any person who has not filed a report to submit a report stating whether or not he is holding any reportable unclaimed property.
Prior notice to owner. Sometime within the abandoned property's dormancy period, the holder must send written notice to the apparent owner at his last known address informing the apparent owner that the holder is in possession of unclaimed property.
If an insurance company learns of the death of the insured or annuitant and the beneficiary has not communicated with the insurer within four months after the death, the company must take reasonable steps to pay the proceeds to the beneficiary.
Delivery. The abandoned property must be delivered or remitted to the South Dakota State Treasurer by the due date for filing of the report. The Treasurer may decline to receive property of insubstantial value.
Recordkeeping. A business must generally maintain related records 10 years after the unclaimed property become reportable. However, the period is three years for traveler's checks, money orders, and similar financial instruments.
Penalties. a person who fails to timely pay or deliver property pays interest at the rate of 4.5 percent (Category A rate) on the value of the property until it is delivered.
If reportable property is disclosed after an examination of the records, the holder of the property may be assessed for the cost of the examination at the rate of $100 per day per examiner, up to the value of the property.
In South Dakota, property is generally presumed abandoned if it has remained unclaimed by the owner for more than five years after it becomes payable or distributable. However, this time limit varies depending on the type of property involved. Once abandoned property is turned over to the state by a business, an individual then has the burden of reclaiming it from the state.
Locating abandoned property held by the state. Unclaimed property held by the state may be found by searching the state's website (https://sdtreasurer.gov/unclaimedproperty).
To find out if other states may be holding your unclaimed property, search the national database established by the National Association of Unclaimed Property Administrators (NAUPA).
Filing a claim. A person, excluding another state, claiming an interest in any abandoned property paid or delivered to the South Dakota State Treasurer may file a claim for its return at any time. The Treasurer must consider and decide on the claim within 90 days after it is filed. The procedure is essentially the same where the claimant is another state, except that the claim will be allowed only in those circumstances where the other state has some basis for claiming a custodial relationship with the property as enumerated in the statute.
To start the process, fill out a state claim inquiry form available online (https://sdtreasurer.gov/unclaimedproperty) after performing a successful search. The Treasurer will contact you with how to proceed from there.
A person dissatisfied with a decision of the Treasurer or whose claim was not acted upon within 90 days after the filing date may, within 90 days after the decision of the Treasurer or 180 days after filing the claim not acted upon, commence an action to establish a claim against the Treasurer in the circuit court.
If you're looking for additional information on unclaimed property, we recommend contacting your state's governmental agency that oversees the administration of this area of the law. For help in answering a specific unclaimed property question in South Dakota, contact the following:
South Dakota State Treasurer's Office
500 East Capitol Ave.
Pierre, SD 57501-5070
Phone: (605) 773-3379, 1-866-357-2547 (toll free in South Dakota)
Fax: (605) 773-3115
|Property Type||Presumed Abandoned After|
|Bank account||five years|
|Checks or drafts||five years|
|Demutualization proceeds||no specific provision|
|Gift certificates, gift cards, and credit memos, excluding any gift certificate or closed-loop prepaid card that has no expiration date and that is not subject to a dormancy, inactivity, or service fee||Gift certificates and credit memos: five years.|
|Insurance policies||Life or annuity policies: four years.|
|IRAs or retirement funds||no specific provision|
|Money orders||five years|
|Other intangible personal property not otherwise specified||five years|
|Proceeds from class action suits||no specific provision|
|Property distributable by a business association in the course of dissolution||one year|
|Property held by courts or public agencies||one year|
|Property held by fiduciaries||five years|
|Safe deposit boxes||five years|
|Shares in a financial institution||five years|
|Stocks, dividends, and distributions||five years|
|Traveler's checks||15 years|
|Deposits and advances owed utility company customer||Deposits, refunds, and advances: one year.|
|Wages or salaries||one year|