escheat

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escheat

Law
1. (in England before 1926) the reversion of property to the Crown in the absence of legal heirs
2. (in feudal times) the reversion of property to the feudal lord in the absence of legal heirs or upon outlawry of the tenant
3. the property so reverting

Escheat

 

in civil law, the legacy of a deceased person that does not go to his heirs. An escheat may occur if up to the day of the donor’s death there are no heirs by law or will or if none of the heirs accepts the inheritance or if the heirs are deprived of the inheritance by the will. If in the absence of heirs the will does not dispose of all the property, the unwilled part of the inheritance is recognized as the escheat.

Under Soviet law, the escheat goes to the government according to the right of inheritance. The state becomes the owner of this property, based on evidence on the right to inheritance given by a notary’s office up to six months from the day of the donor’s death. The government, in the person of local financial officials, assumes responsibility for the debts of the donor to the limit of the value of the property. Property that reverts to state ownership in this way is turned over to state, cooperative, or social organizations for appropriate use.

V. A. KABATOV

escheat

The assumption of ownership of property by the state if no other owner can be found.
References in periodicals archive ?
Exhibit 3 presents a summary classification of jurisdictions that generally do not escheat.
States may also amend escheat laws to exempt cards provided that they do not expire and/or enforce a fee.
For example, in Colorado gift certificates that are redeemable for cash escheat to the state, whereas those that are redeemable for tangible goods or services do not.
New Jersey does not limit their powers to escheat property that no jurisdiction is entitled to claim under the first two priority rules.
The Supreme Court indicated at the outset of that opinion that it was settling a "controversy as to which State has jurisdiction to take title to certain abandoned intangible personal property through escheat.
In the past few years, a number of jurisdictions have enacted or amended their unclaimed property statutes to exempt some property types usually subject to escheat, such as gift certificates, credit memos, and business-to-business (13213) transactions.
New Jersey's policy of simplicity and ease of administration in resolving escheat disputes between the states; however, until the Supreme Court exercises its original jurisdiction to resolve a dispute involving an LLC or another noncorporate holder, such holders and their advisers will continue to face considerable uncertainty in interpreting and applying the secondary rule.
The difficulty in complying with escheat laws today is that there is no consistency.
Although the various statutes can make understanding and complying with unclaimed property laws a heavy burden, they can also provide practitioners with the tools needed for proactive escheat planning and future compliance.
Under one successful lobbying effort, Florida now exempts unused theme park admissions from escheat.
Many states assert the right to escheat unused balances of gift certificates or gift cards that are purchased in that state, regardless of the domicile of the owner or holder.
When an escheat exemption is not available, some retail issuers have explored the possibility of imposing service charges (also known as administrative fees or dormancy fees) on unused gift certificate and gift-card balances after a certain period of time of nonuse of the product (e.