What occurs under escheat?

Escheat refers to the legal process by which the state reclaims ownership of property when an individual dies without a will or legal heirs. In this scenario, after verifying that no rightful claimants exist, the government regains ownership, effectively ensuring that property does not remain ownerless. This legal principle serves to prevent unclaimed property from falling into a state of limbo and allows the government to manage and use such assets for public benefit. The concept is rooted in the idea that property can only have one owner, and when that ownership cannot be established through heirs or other means, the state steps in as the next owner.

The other options do not accurately describe escheat; instead, they refer to different legal or financial processes involving property transfer, but none align with the specific definition and function of escheat in property law.