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 ?
It is now the people's University." (79) The state legislature appropriated $7500 annually to the University in addition to the escheats. (80) When the University reopened in 1875, tuition dropped from the $100 charged in 1868 (81) or the $80 charged just before the University's brief closure in 1870 (82) to $60.
"The UPL [Unclaimed Property Law] is not a permanent or 'true' escheat statute.
I should note that, according to Steve Sheppard, Coke stood mute, shaking like a leaf when he met Elizabeth in June of 1592 because she had chastised him "for bringing arguments against her interests in taking estates by escheat, to which he tearfully respond[ed], assuring her of his loyalty to her": Coke, 2003, 1:xxxviii.
An escheat is an estate which has reverted to an overlord for lack of an heir or because of a felony.
Because of the potential relevance and applicability to financial statement engagements, CPAs should perform and document an escheat analysis.
Forfeiture orders under both the federal and provincial legislation, however, typically cannot be overturned more than thirty or sixty days after being made (161) (subject, in the case of forfeitures ordered under Ontario law, to being reversed by the executive under the Escheats Act).
If the identity and address of the owner is not known, then the secondary rule awards the right to escheat to the holder's state of corporate domicile.
It may also be possible to reduce or eliminate escheat liability by taking advantage of certain provisions of state law, though some structuring strategies may be risky because of the lack of settled legal precedent.
Whether it was Roger Beauchamp's marriage to Sibyl Patshull or Thomas Dagworth's to the countess of Ormond, a marriage almost always increased the size of a new man's estate substantially(135) -- and usually, as with other forms of royal patronage such as escheats, forfeitures, and expectancies, in an area where a new man had previous interests.(136)
Because all future interests in trust are, under section 2-707 of the UPC, subject to a requirement that their individual owners must survive to the distribution date unless the trust instrument provides otherwise, escheats will increase if these owners die without descendants substituted for them by section 2-707.
In summary, if the holder of unclaimed property can determine the state of the property owner's residence using registration address data, then the holder escheats the property to that state (see Exhibit 1).
It thus held that owner-unknown property escheats to the state in which the debtor is incorporated.