Which term describes the transfer of assets to the state when there are no eligible heirs?

Which term describes the transfer of assets to the state when there are no eligible heirs?

• A. Dower
• B. Renunciation
• C. Escheat
• D. Marshaling the assets

Answer: (C)

Escheat is the transfer of a decedent's property to the state when there are no eligible heirs. This happens when someone dies without a will and no surviving relatives with a legal right to inherit can be found, so ownership reverts to the government to prevent property from becoming unowned. Dower involves a surviving spouse’s right to a portion of the estate, not the state. Renunciation is when an heir voluntarily declines an inheritance, which may shift property to other heirs or, if none exist, escheat. Marshaling assets is about organizing estate assets to satisfy claims, not transferring ownership to the state.

Escheat is the transfer of a decedent's property to the state when there are no eligible heirs. This happens when someone dies without a will and no surviving relatives with a legal right to inherit can be found, so ownership reverts to the government to prevent property from becoming unowned. Dower involves a surviving spouse’s right to a portion of the estate, not the state. Renunciation is when an heir voluntarily declines an inheritance, which may shift property to other heirs or, if none exist, escheat. Marshaling assets is about organizing estate assets to satisfy claims, not transferring ownership to the state.