Escheatment: What Happens to Unclaimed Property in Florida
Most people assume that when they pass away, their property automatically goes to whoever they choose, or to their closest living relatives if they never wrote a will. In most cases, this assumption is correct. But what happens when there is no will and no living relatives to be found? This is where a legal process called escheatment comes into play, and it is a topic worth understanding with Palm Beach County probate attorneys before it becomes a real concern for your own estate.
What Does Escheatment Actually Mean?
Escheatment is the legal process through which unclaimed or ownerless property transfers to the state government. In the context of probate, this happens only in fairly rare circumstances. If a person dies without a will and the probate court cannot locate any surviving spouse, children, parents, siblings, or more distant relatives such as cousins, aunts, uncles, nieces, or nephews, the estate’s remaining assets escheat to the State of Florida.
This is not limited to inheritance situations. Escheatment also applies to unclaimed property more broadly, including old bank accounts, uncashed checks, forgotten security deposits, and dormant safe deposit boxes. If a company or financial institution cannot locate the rightful owner of an asset after a certain dormancy period, that property is generally required to be turned over to the state.
How Florida Handles Unclaimed Estate Assets
Florida law addresses this process directly. Under Florida Statute 732.107, if a person dies intestate with no heirs who can be identified after a diligent search, the property in the estate escheats to the State of Florida. The funds do not simply disappear into a general fund forever. According to the Florida Department of Financial Services, the state maintains records of unclaimed property, and rightful heirs who come forward later, sometimes years afterward, may be able to file a claim to recover what they are owed.
That said, the process of proving entitlement to escheated property after the fact can be far more complicated, expensive, and slow than simply being named in a will from the start. Legal heirs may need to hire genealogists, gather extensive documentation, and go through a formal claims process with the state.
Why This Rarely Needs to Happen
Escheatment is designed as a last resort, not a common outcome. Most people, even those without close family, have some living relative somewhere in their extended family tree. The probate court is required to conduct a genuine search before declaring an estate escheated, and this search can uncover distant relatives that a person may not have even known existed.
The far more practical solution is to avoid the possibility altogether. A basic will allows you to direct your assets to specific people, charities, or organizations of your choosing, regardless of whether you have close family members. This keeps control in your hands rather than leaving your legacy up to a search for distant relatives, or worse, the state itself.
A few practical steps to avoid escheatment concerns in your own estate:
- Create a will that names specific beneficiaries, even if you have no children or spouse
- Name a charitable organization as a backup beneficiary if you have no family you wish to include
- Periodically check for unclaimed property under your own name or a deceased relative’s name
- Keep beneficiary designations updated on bank accounts, retirement accounts, and life insurance policies
- Discuss your estate plan with a lawyer if you are unsure whether any relatives could be located after your passing
Contact Us to Protect Your Legacy
No one wants their hard-earned assets to end up in the hands of the state simply because a will was never written. Kitroser Lewis & Mighdoll can help you create an estate plan that ensures your property goes exactly where you want it to go. Reach out to us today to get started.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0732/Sections/0732.107.html
