Final answer:
Escheatment is the process where unclaimed assets are turned over to the state until the rightful owner or beneficiary claims them (b). Trusts are designed to manage and transfer assets according to the creator's wishes. If someone dies intestate, the distribution of assets is managed by the state according to intestacy laws.
Step-by-step explanation:
When a trust department or trust company is required to turn over unclaimed assets to the state to hold until such time as the owner or beneficiary is found or comes to officially claim them, this process is called escheatment. This legal process ensures that unclaimed or abandoned property is transferred to the state, which serves as the custodian of the unclaimed assets until rightful ownership can be established or the owner comes forward to claim their property.
A trust is an arrangement where assets are managed by one party for the benefit of another. Trusts are meant to facilitate the transfer of assets according to the wishes of the trust's creator. Upon death, if a person has a will or trust, their assets are transferred in accordance with their estate plans. Without such legal documents, the state determines asset distribution through intestacy laws.
Intestate refers to dying without a will or estate plan, leading to the state stepping in to allocate assets among heirs based on predetermined legal guidelines. The escheatment process can become relevant in cases where heirs either cannot be found or legally determined, or if the assets remain unclaimed for a significant period.