- Reversion of monies or securities to the state in which the securityholder was last known to reside, when no claim by the securityholder has been made after a certain period of time fixed by state law. This is known as the holding period or cut-off date. Bloomberg Financial Dictionary
* * *escheat es‧cheat [ɪsˈtʆiːt] noun [uncountable]LAW a legal process in which someone's money and property are given to the state after they die if they do not have a will, or if there is nobody else with a legal right to receive their money or property:
• By the old doctrine of escheat, states and municipalities may capture unclaimed and dormant bank deposits.— escheatment noun [uncountable]
* * *Ⅰ.escheat UK US /esˈtʃiːt/ noun [U] LAW, PROPERTY► a situation in which property or money becomes the property of the state if the owner dies without a will (= an official statement of what should happen to their property) and without legal heirs (= a person who can receive property or money from someone who dies): »
Whatever land is not actually owned by the public authority may be transferred to it by escheat.► property or money for which no owner can be found and for that reason becomes the property of the state: »
Abandoned financial property, known as escheat, is one of the state's largest revenue sourcesⅡ.escheat UK US /esˈtʃiːt/ verb [T] LAW, PROPERTY► to become the property of the state by escheat: escheat to sth »
Because Thompson died without having made a will, his property escheats to the state.
Financial and business terms. 2012.