Escheated means to revert or transfer property to the state or government, especially when the rightful owner dies without a will (intestate) and without any legal heirs. It can also occur if a corporation is dissolved and has no legal successor. The process ensures that unclaimed assets don't simply disappear but are used for the public good, adhering to legal and ethical standards of property ownership and succession. This legal principle maintains public order and prevents property from becoming ownerless.
Escheated meaning with examples
- After John's unexpected death, and the absence of any known family or a will, his extensive real estate was forced to escheated to the state, ensuring its proper administration and the fair distribution of his assets as per the law, and public good. The process was handled with careful diligence.
- The dormant bank account of the deceased, without any claims over a decade, escheated to the state, the funds were transferred to the public treasury. This prevented the funds from being used by entities that shouldn't have access to the funds. The government planned to use it on the public library.
- Following the company's dissolution due to bankruptcy, any remaining assets, without viable claims, escheated to the government. The government put these assets up for auction, contributing towards public funds. The process was fair and unbiased.
- Since the property owners had no heirs, it escheated to the state after the owner died. The government put the property to public use to serve the interests of the local community. The state followed strict guidelines during the process.