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 ?
at Chapel Hill, Escheats Funds: An Overlooked Source of Public Capital for Business Development in North Carolina, (2005), available at http://www.
The UPL [Unclaimed Property Law] is not a permanent or 'true' escheat statute.
Because of the potential relevance and applicability to financial statement engagements, CPAs should perform and document an escheat analysis.
To analyze an escheat obligation or liability, one must examine the character of escheatable property, the identity of the parties, and the period of dormancy.
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.
For example, a business may include a statement on a written instrument declaring that the owner's failure to negotiate an instrument within a certain period of time constitutes private escheat (i.
If neither State B nor State C escheats unused gift card balances, then State A may have a basis for escheating any unclaimed balances.
The first step in compliance to escheat laws is to identify which among the 50 state (and District of Columbia and Virgin Islands) escheat laws apply.
Until seven to 10 years ago, the majority of jurisdictions did not aggressively enforce their escheat statutes.
As state unclaimed property administrators continue to broaden their audit efforts to target more and more holders (or potential holders) of unclaimed property, LLCs and other noncorporate holders (such as limited partnerships) are beginning to discover that they are not immune from compliance requirements imposed by the escheat laws of 53 different jurisdictions (50 states, the District of Columbia, Guam and Puerto Rico).
In the area of escheat, most states just fall back on their "catch-all" provisions, which provide that any tangible or intangible property not specifically enumerated elsewhere in the statute escheats to the state in a set period.
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.