What is defined by 'escheat'?

Prepare for the Metro Brokers Exam with flashcards and multiple choice questions. Each question is accompanied by hints and explanations. Get ready for your certification!

Escheat is the legal principle that allows the state to claim ownership of property when a person dies without a will and has no lawful heirs. This means that if an individual passes away and there are no identifiable beneficiaries or next of kin to inherit the property, the state's right to escheat ensures that the property does not remain unclaimed or fall into a void of ownership. The government's claim serves to prevent the property from being left abandoned and helps maintain the orderly allocation of property rights within society. Options that reference the distribution of assets to heirs, the transfer of property through a will, or the protection of land do not accurately describe escheat, as they pertain to different legal processes and concepts regarding property transfer and inheritance.

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