What does 'escheat' refer to in legal terms?

The term 'escheat' refers to the process by which property or assets revert to the state when an individual dies without a will and without any legal heirs to inherit the estate. This legal principle is designed to ensure that properties do not remain ownerless and instead are managed by the state.

In instances of escheat, the state becomes the rightful owner of the property, which might include real estate or personal property. This procedure serves both to prevent disputes over unclaimed estates and to allow the state to derive potential revenue from the property through taxes or future sales.

Understanding this definition is key, as it highlights the nature of property succession in cases where individuals lack a direct line of inheritance, emphasizing the legal mechanism by which the state steps in to manage unclaimed assets.