California Real Estate Salesperson Exam Practice - Question 62

Question

Charles died intestate and left a $60,000 estate but no heirs. His estate would:

Selections

A. Revert to the state

B. Escheat to the county

C. Be held for five years by the state and then revert to the county

D. Be given to a charitable organization

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Answer: A

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5 Keys Summary

• When an individual dies intestate (without a valid will) and without legal heirs, the disposition of their property is governed by a legal process called escheat.

• Escheat is the legal procedure by which property title vests in the state when an owner dies leaving no will or heirs.

• In this scenario, the estate would legally revert to the State of California, confirming that the property belongs to the state.

• The purpose of escheat is to ensure that all property always maintains an owner, transferring to the government when private succession fails.

• The property reverts specifically to the state government, and not to the county or a charitable organization.

Explanations

When a person, like Charles, dies intestate (meaning without leaving a valid will), and no legal heirs can be found to claim their property, the estate undergoes a legal procedure known as escheat. Through escheat, the property (in this case, the $60,000 estate) legally reverts to the state government. The Chinese source explicitly states that "the result of escheat is that the property belongs to the state of California".

Therefore, the estate would revert to the state, not the county, nor would it be held for a specific period before reverting to a county, nor automatically given to a charitable organization unless specified in a will (which is not the case here as Charles died intestate).

Concepts Definitions

Intestate: Describes a person who dies without having left a valid will.

Heirs: Individuals who are legally entitled to inherit property from a deceased person, especially in the absence of a will.

Escheat: A legal process through which property reverts to the state government because the owner died without a will and no legal heirs can be found.

Estate: Refers to all the real and personal property owned by an individual at the time of their death.

Probate: The legal process of proving a will or, if a person dies intestate, administering and distributing their estate under court supervision to the rightful heirs.