What is Escheat?

What Is Escheat, and What to Do If You Think the Property Is Yours

What is escheat? It’s a legal process where property reverts to the state when someone dies without a will and no legal heirs can be found. Escheat laws ensure that property doesn’t remain unclaimed or abandoned forever. If you believe that escheated property belongs to you or your family, there are steps you can take to assert your rights. In this blog, we’ll explore escheat in depth and guide you through what to do if you suspect a rightful claim.

Understanding the Concept of Escheat

Escheat occurs when a person dies without a will (intestate) and leaves behind no spouse, children, or legal next of kin. In such cases, the government steps in to claim ownership of the deceased person’s property. This includes real estate, bank accounts, retirement funds, uncashed checks, stocks, and even safe deposit box contents.

Although escheat may sound like a rare legal occurrence, it happens more frequently than expected. With busy lives and fragmented families, it’s easy for estates to go unclaimed. Fortunately, there are systems in place that allow potential heirs to recover escheated property, provided they act within a certain timeframe.

To learn more about what happens when a will can’t be found, read Can’t Find the Will?

Common Reasons Property Escheats to the State

To understand your potential right to property, let’s first look at why escheat happens in the first place:

No Will or Estate Plan: Without a will, the courts must follow intestacy laws to find an heir. If none are found, the property escheats. Learn more about this in Settling an Estate Without a Will or Legal Heir.
No Known Heirs: Even when someone has relatives, the state may claim the estate if officials fail to locate or identify the heirs in time.
Unclaimed Financial Assets: Banks and institutions often transfer inactive or forgotten accounts, unclaimed insurance payouts, or uncollected wages to the state after a dormancy period.
Abandoned Real Estate: If property taxes go unpaid, and no one steps forward to claim ownership, the property may escheat.
Estate Disputes or Errors: Sometimes, property is mistakenly escheated due to poor record-keeping or legal oversight.

Knowing how and why escheat occurs can help you spot signs that a deceased relative’s assets may be at risk.

Escheat and the Importance of a Will

A valid will plays a critical role in preventing escheat. When someone dies with a properly executed will, the state is obligated to follow the instructions laid out in that document. This ensures that the person’s assets go to the chosen beneficiaries.

However, when no will is found, escheat becomes more likely. Sometimes, a will exists but is misplaced, lost, or never submitted to probate. When this happens, the estate is treated as if there is no will at all. That’s why it’s crucial to keep your will in a secure and accessible location.

Even better, you can register your will with The U.S. Will Registry, a national database that helps ensure your will can be found when needed. If a property has already escheated, and a valid will is later discovered, heirs may be able to reverse the escheat process and reclaim the property. Learn how to do this by reading How to Locate a Lost Will: A Step-by-Step Guide.

How to Find Out If a Property Has Escheated

If you suspect that you or a family member might be entitled to escheated property, there are several steps you can take:

1. Search Your State’s Unclaimed Property Website

Every state has an unclaimed property division that maintains a searchable database. Start by visiting your state’s treasury department or controller’s office website.

2. Use National Resources

Websites like MissingMoney.com aggregate unclaimed property records from multiple states. A quick search of your name or a relative’s name may reveal hidden assets.

3. Contact the Probate Court

Visit the probate court in the county where the deceased person lived. Ask whether the court opened a probate case. If no will existed, the court may have declared the estate intestate and transferred it to the state through escheat.

Ask if a probate case was ever opened. If the estate was declared intestate, it may have escheated. Learn more in Guide to Filing a Probate Petition.

4. Search The U.S. Will Registry

If you believe a will exists but wasn’t located during probate, check The U.S. Will Registry. If a registered will is found and it names you as a beneficiary, you may be able to make a claim. For guidance, read How to Search for a Will Using The U.S. Will Registry.

Steps to Reclaim Escheated Property

If you locate a property that has escheated, don’t delay. The process of reclaiming it involves several key actions:

1. Gather Documentation

You’ll need to prove your identity and your relationship to the original property owner. Typical documents include:

- - Birth certificates
  - Death certificates (see: How to Get a Death Certificate)
  - Marriage licenses
  - Proof of address
  - A copy of the will (if applicable)

2. Submit a Claim Form

Visit your state’s unclaimed property website and locate the claim form. Complete the form and upload your documentation directly. While some states accept online filing, others require you to send paperwork by mail. Additionally, make sure you follow the instructions precisely to avoid delays.

3. Follow Up With the Agency

Once you’ve submitted your claim, follow up with the agency regularly. State agents often review some claims within weeks, but others might take months due to complexity. Furthermore, staying in contact ensures you remain updated on the status of your claim.

4. Hire a Probate Attorney (if needed)

Consider hiring a probate attorney if the estate is large, complex, or involves disputes. An experienced attorney will guide you through the legal process and improve your chances of a successful outcome. In fact, professional support can make a significant difference in resolving issues efficiently. For a deeper look into the executor’s role, read Executor of Estate – A Guide for Families and First-Time Executor.

Can Escheat Be Reversed?

Yes, in many cases, you can reverse escheat. If you prove that you’re the rightful heir or present a valid will, the state may return the property to you.

Each state sets a statute of limitations, which limits the time you have to file a claim—typically between 5 to 15 years, depending on the state. Consequently, acting promptly is essential.

If someone locates a will after the property has escheated, that discovery can still reverse the process. That’s why resources like The U.S. Will Registry can be invaluable. A found will that clearly names beneficiaries can override an escheat ruling and restore property rights. For more, see How to Find Out If You Are a Beneficiary of a Will.

How to Prevent Escheat From Happening to Your Estate

Now that you understand how escheat works, let’s look at ways to prevent it from affecting your own estate:

1. Write a Legally Valid Will

A will is your best defense against escheat. Make sure it’s signed, witnessed, and stored securely. Better yet, register it with a national database. You can start today with this Free Will Maker – Create Your Will Online Today for Free.

2. Keep Beneficiaries Updated

For retirement accounts, life insurance policies, and investment portfolios, update your beneficiary designations regularly.

3. Avoid Dormant Accounts

Use all financial accounts at least once every year or two. Inactivity can lead institutions to label them as abandoned.

4. Inform Your Family

Let your family or executor know where to find important documents, account numbers, and login credentials.

5. Register Your Will With The U.S. Will Registry

This service ensures your will is searchable when it matters most. If anyone ever questions or loses your will, you can use it as legal proof of your wishes.

Final Thoughts: Act Quickly and Stay Informed

Understanding what is escheat and how it affects unclaimed property can save you and your loved ones from financial loss. Escheat exists to manage property when no one steps forward, but that doesn’t mean you have to lose what is rightfully yours.

By checking databases, gathering documentation, and knowing where to turn, you can take action to reclaim escheated property. Just remember, time is not on your side. State laws often limit how long you have to make a claim.

If you believe a will was overlooked, start by searching The U.S. Will Registry. A single document could change everything.

Take control of your legacy today and help your family avoid unnecessary complications. Preventing escheat begins with planning, communication, and timely action.