What term describes the process where property goes to the state due to no located heirs or creditors?

The term that describes the process where property goes to the state because there are no located heirs or creditors is known as escheat. This legal principle ensures that when an individual dies without a will and without identifiable heirs, the property reverts to the state rather than remaining in limbo. Escheat serves a public policy purpose by preventing property from becoming ownerless and allowing the state to take custody of the property, manage it, and potentially use it for public benefit.

In real estate, the concept of escheat highlights the importance of having a valid will or established heirs to ensure that property is passed according to the decedent's wishes. This process protects the rights of citizens, as it ensures that unclaimed or abandoned property doesn't remain unaccounted for indefinitely. Understanding escheat is a key aspect of both real estate law and estate planning, reinforcing the necessity for individuals to manage their estates proactively.