Paralegal Advanced Competency Exam (PACE) Practice Exam

What legal concept concerns the transfer of property upon the death of an individual without heirs?

1. Probate

2. Trusts

3. Escheat

4. Wills

The correct answer is: Escheat

The legal concept that involves the transfer of property when an individual dies without heirs is known as escheat. This process ensures that the property reverts to the state or government to prevent it from being left ownerless. When there are no descendants or legally recognized heirs, escheat serves as a mechanism to handle the property and provide a clear path for its management or reallocation. Probate, on the other hand, refers to the legal process by which a deceased person's will is validated, and their estate is administered. It doesn’t apply to property that has no heirs, as probate typically addresses the distribution of assets according to a valid will or state laws of inheritance. Trusts are arrangements in which property is managed by one party for the benefit of another and are not directly related to the transfer of property upon death when no heirs exist. Wills are legal documents that outline how a person's property is to be distributed after their death, which again does not apply in situations where there are no heirs. Therefore, escheat specifically addresses the need to manage property left without identifiable heirs, making it the correct answer in this context.