escheat

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Escheat

Reversion of monies or securities to the state in which the securityholder was last known to reside, when no claim by the securityholder has been made after a certain period of time fixed by state law. This is known as the holding period or cut-off date.

Escheat

The acquisition of property by a state or government from the estate of a deceased person. An escheat occurs when the deceased person has no will, no relatives, and no survivors to whom the property would otherwise go. Because it is rare for a person to have no relatives at all, escheats are fairly unusual. The concept has its origins in feudalism, when the immediately superior feudal lord would inherit property that would otherwise be left without an owner. Different states have different laws governing escheats.

escheat

The right of the state to claim a deceased person's property when there are no individuals legally qualified to inherit it or to make a claim to it. This occurrence is fairly unusual even when the deceased leaves no will.

escheat

The reversion of property to the state because of the lack of anyone to inherit it.

References in periodicals archive ?
If no owner information exists or if owner information is challenged, then the holder's state of incorporation (State C) may have a basis for escheating unclaimed balances.
Using a proprietary process and leveraging access to multiple databases, Equisearch finds and approaches either the owner or the next of kin and works to return the funds before the institution is required to endure the arduous process of escheating, or forfeiting, these funds to the state where they become incredibly difficult to retrieve.
Based in New York City, with offices in Salt Lake City and Chicago, SMS assists corporations in preventing hundreds of millions of dollars from escheating to states.