Definition of Escheat:
Escheat refers to the right of a government to take ownership of estate assets or unclaimed property. It most commonly occurs when an individual dies with no will and no heirs. Escheat rights can also be granted when assets are unclaimed for a prolonged period of time. These situations can also be referred to as bona vacantia or simply just unclaimed property.
Reversion of a property or monies to the State if their owner dies intestate without any heirs, or when a bank account remain inactive for a certain number of years and the efforts to contact the account holder prove fruitless. However, the money in the bank account (less any service charges) can be redeemed if the account holder reappears. From French escheoir, to devolve.
The concept of escheat maintains that property always has a recognized owner, which would be the state or government if no other claimants to ownership exist or are readily identified. In the U.S., each state jurisdiction has its own laws and regulations governing escheat rights and related matters.
How to use Escheat in a sentence?
- Most states have standard procedures for automatically transferring dormant account assets after a specified period of time.
- In the U.S., each state has its own rules and regulations for granting escheat rights.
- Escheat refers to the right of a government to take ownership of estate assets or unclaimed property.
- Escheat rights are often determined through probate or other types of court proceedings.
Meaning of Escheat & Escheat Definition