En esta noticia
When a person dies, there are different scenarios regarding what can happen to their estate, depending on factors such as the existence of a valid will or heirs who are entitled to receive the assets under intestate succession laws.
In some cases, when there are no people legally authorized to receive the inheritance, a mechanism that few know about is applied.
The procedure known as escheat allows the State to become the owner of a deceased person’s estate when there are no testamentary beneficiaries or heirs entitled to receive it.
In what cases can the state keep the inheritance?
According to Section 6800 of the California Probate Code, the state can keep all or part of a deceased person’s estate when there are no testamentary beneficiaries or heirs legally entitled to receive those assets, in accordance with the laws of California or other jurisdictions.
The regulations establish different conditions depending on the type of assets:
- Lack of beneficiaries and heirs: When there is no person with the right to receive all or part of the estate through a will or intestate succession laws, except for government entities.
- Real estate: Properties located within the territory of California may become property of the State.
- Tangible personal property: Material goods that the deceased normally kept in California may pass to the State, even if they were elsewhere at the time of death. Certain assets administered by California courts are also included, although rights from other jurisdictions may exist.
- Intangible assets: Bank accounts, stocks, and other financial assets may become property of the State if the deceased was domiciled in California at the time of death. Certain assets administered by state courts may also be included, even if the deceased lived in another jurisdiction.
- Benefit funds: Benefits from certain health, pension, retirement, and welfare funds revert to the original fund. However, they may pass to the state if the plan ended and its funds were already distributed among the beneficiaries before the benefit corresponding to the estate was distributed.
What assets can be included in this process?
The California Probate Code contemplates different types of assets that may become state property when the legal conditions established in sections 6800 to 6806 are met.
Among them are:
- Real properties: houses, lots, apartments, and other real estate located in California.
- Money and financial assets: bank accounts, investments, stocks, bonds, and other economic rights.
- Personal property: vehicles, furniture, jewelry, and other material belongings.
- Other property rights: certain assets and economic benefits that form part of the inheritance.
However, not all assets automatically pass to the State. The regulations establish specific conditions depending on their location, the deceased’s domicile, and the rights that other people or jurisdictions may have.
What happens to that inheritance when it becomes state property?
Section 6800 of the Probate Code establishes that the assets covered by this mechanism pass to the State from the moment of death, although they remain subject to the corresponding legal obligations and conditions.
Section 11903 establishes that assets distributed to the State must remain under the custody of the State Treasurer for five years, counted from the date of the court order of distribution.
During that period, people who believe they are entitled to receive the inheritance may file a claim with the corresponding documentation, in accordance with the procedures provided for in the California Code of Civil Procedure.
Once the five years have elapsed without a valid claim, the assets become the State’s permanent property, with the exceptions provided for in the legislation.