Escheated

Escheated is a legal term that describes the process by which property reverts to the state or other public authority when an owner dies without a will and with no identifiable heirs. This legal doctrine ensures that property does not remain indefinitely without a clear owner. The term can also apply when a corporation dissolves without a plan for its assets. The state typically takes possession of the property, and its ultimate disposition varies by jurisdiction. Some states may use the proceeds for public benefit, while others might have specific provisions for how the property is handled.

The process of escheatment usually involves a period of public notice to allow any potential heirs or claimants to come forward. If no valid claimants appear within the designated timeframe, the property is officially considered escheated. This is distinct from a property being condemned or seized due to illegal activity. Escheatment is a consequence of the owner's inability to pass on the property through traditional means like a will or designated beneficiaries. It is a mechanism to prevent property from becoming ownerless and to ensure it eventually benefits the public or is handled according to established legal procedures.