Final answer:
When a person dies intestate and without heirs, their property is transferred to the state in a process known as escheat. Intestacy laws dictate this process, allowing the state to become the owner of the property and manage it accordingly.
Step-by-step explanation:
What Happens When Someone Dies Intestate Without Heirs?
When a person dies without having made a will or trust, they are considered to have died intestate. In such cases, the distribution of their assets is determined by the state's intestacy laws, which provide a hierarchy for distributing assets to relatives like a spouse, children, parents, and siblings. If there are no heirs to inherit the estate, the property typically escheats to the state, meaning it becomes state property. This process is called escheat.
A will is essentially a declaration of one's wishes for the distribution of their property after death. It could range from a formal document to a simple hand-written note. However, wills can be challenged in court, making their validity sometimes questionable. Unlike the private nature of trusts, wills are public, allowing anyone to view the deceased's assets and the details of their distribution.
In cases of intestate death, if the individual's estate is beneath a certain value, no estate tax may be due by the inheritor. To prevent wealthy individuals from circumventing taxes, gift taxes may apply to substantial money or property transfers made during an individual's lifetime.
Escheatment serves as a legal framework that prevents property from going ownerless if an individual dies intestate and without identifiable heirs, ensuring the state can claim and manage the assets.