If a person dies without a will (intestate)—and with no heirs (relatives or descendants)—ownership of the deceased person’s (decedent’s) property may be transferred to (or said to revert to) the state government (usually the state treasury) through the common law doctrine of escheat. In addition to enriching the state treasury (or the Lord in feudal England), escheat prevents property from remaining in limbo with no rightful owner.

A state’s common law is comprised of court opinions written by judges to resolve disputes and most states adopted the legal doctrine of escheat from the English common law (from England) soon after the founding of the United States and each state’s admission to the union. But in more recent years many state legislatures have defined the law of escheat in their state’s statutes—making it statutory law—which is also known as codifying the law, because it is then part of a code or statute.

The property subject to escheat laws is sometimes referred to or classified as unclaimed or abandoned property. Upon transfer to the government the unclaimed or abandoned property may be referred to as escheated property. And in some states there may be a period (a statute of limitations) in which heirs or rightful owners of the property may be able to reclaim escheated property.

Escheat laws vary from state to state and often depend on the nature of the asset involved (personal property, real property, bank account, brokerage account).

In Indiana, if a person dies intestate (without a will) and has no identifiable heirs, the property of the deceased may escheat to the state. This means that the state can claim ownership of the property to prevent it from being ownerless. Indiana's escheat laws are codified in state statutes, which provide the legal framework for how such property is to be handled. These laws are designed to manage the transfer of unclaimed or abandoned property to the state government. Indiana has a process in place for the administration of escheated property, which is overseen by the Attorney General's office. The state holds the escheated property for a certain period, during which potential heirs or rightful owners may come forward to claim the property. If no claimants appear within this period, the state may then use or dispose of the property. The specific rules and timeframes for claiming escheated property in Indiana can be found in the Indiana Code, and individuals seeking to reclaim such property should consult with an attorney to understand their rights and the applicable procedures.