What happens to an estate when a person dies intestate and leaves assets but no heirs?

Study for the Real Estate Principles Exam. Get ready with real-world scenarios, multiple-choice questions, and detailed explanations. Enhance your understanding and confidence for your big day!

When a person dies intestate, which means they have not left a will, their estate is distributed according to the laws of intestate succession in the state where they resided. If such a person leaves behind assets but no recognizable heirs, the estate typically escheats to the state government. This legal process occurs because the state provides an ultimate fallback for unclaimed property, ensuring that assets do not simply remain in a state of uncertainty.

The government will then take possession of the estate, effectively allowing it to be utilized for public purposes or potentially auctioned off. This is founded on the principle that the state has an interest in the orderly transfer of property and wants to avoid situations where assets are left indefinitely unclaimed.

In contrast, the other choices involve scenarios that wouldn't occur under intestacy laws when no heirs can be determined. The estate would not be divided among relatives or absorbed into a charitable trust without a legitimate basis, since there are no direct heirs. Therefore, the correct outcome under these circumstances is that the estate goes to the government, reflecting the state's role in unclaimed property matters.

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