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 ?
Moreover, while states seemingly are forever adjusting escheat laws, businesses are also adjusting their practices in response to those laws.
According to Larson, the first, and perhaps most critical, step in compliance with escheat laws is to identify which among the 50 state (and District of Columbia and Virgin Islands) escheat laws apply to a given business.
Further, the state in which a gift card purchase occurred may lay similar escheat claims in instances where neither of the previously mentioned states have made a claim.
We accordingly adhere to Texas and Pennsylvania and award the right to escheat under the secondary rule to the State in which the debtor is incorporated.
In essence, the first priority rule provides that the primary right to escheat a given item of intangible property belongs to the jurisdiction of the owner's last-known address, as shown by the holder's books and records.
New Jersey and award the secondary right to escheat to the jurisdiction in which the holder is domiciled, when the holder is not a corporation, the Acts define "domicile" as the jurisdiction of a noncorporate holder's principal place of business.
New Jersey by awarding the secondary right to escheat to the state in which the holder is a "domiciliary.
If such an LLC holds an item of unclaimed property for which it does not have the owner's last known address, both Montana and Delaware could ostensibly claim the right to escheat the property under Texas v.
Dormant bank accounts, uncashed dividend checks, untendered shares and outstanding insurance drafts used to be the only property subject to the escheat laws.
If, within the statutorily imposed period, the owner does not reestablish contact or exercise control over the property, the property becomes subject to escheat in the state with jurisdiction over the property.
If name and address records are maintained, the state of the purchaser's last known address has the first priority right to escheat the unused balances.
Delaware, a common state of incorporation and therefore a frequent beneficiary of the second priority rule, recently considered and rejected an amendment to its escheat laws exempting gift certificates.