Escheat is the process by which the property of a person who dies intestate (without a will) and without any known heirs passes to the State. The Civil Code provides that in default of persons entitled to succeed (no spouse, descendants, ascendants, or collateral relatives within the fifth degree), the State inherits the whole estate. Procedurally, the government files a petition for escheat in the proper court, which, after notice and publication to give any claimants the chance to appear, orders the estate assigned to the State — typically for the benefit of educational, charitable, or public institutions in the municipality or city where the decedent last resided (with personal property) or where the real property is located. A person who later proves a lawful right to the escheated estate may, within a limited period (generally five years from the judgment), file a claim to recover it. Escheat also covers unclaimed balances (such as dormant bank deposits and unclaimed funds) under separate rules, and property donated to the State that reverts when the condition of the donation is not fulfilled. So no estate is truly ownerless; ultimately it goes to the State for public benefit.
What Escheat Is
Escheat is the passing of the estate of a person who dies intestate and without heirs to the State.
When the State Inherits
In default of persons entitled to succeed (no spouse, descendants, ascendants, or collaterals within the fifth degree), the State inherits the whole estate.
The Process and Reclaiming
The government files a petition for escheat, and after notice and publication, the estate is assigned to the State, typically for educational or charitable institutions. A person later proving a lawful right may reclaim it, generally within five years of the judgment.
Practical Takeaways
- An estate with no will and no heirs goes to the State by escheat;
- The State inherits only when no relative within the fifth degree survives;
- A rightful claimant may reclaim within about five years.
Frequently Asked Questions
What is escheat? The process by which the property of a person who dies intestate and without any known heirs passes to the State.
When does the State inherit an estate? In default of persons entitled to succeed, meaning no spouse, descendants, ascendants, or collateral relatives within the fifth degree, the State inherits the whole estate.
Can escheated property be recovered? Yes. A person who later proves a lawful right to the escheated estate may file a claim to recover it, generally within five years from the judgment of escheat.
What happens to escheated property? It is typically assigned for the benefit of educational, charitable, or public institutions in the place where the decedent last resided or where the real property is located.
This commentary is for general informational purposes only and does not constitute legal advice. For guidance specific to your situation, please consult a licensed attorney.
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