Paralegal Advanced Competency Exam (PACE) Practice Exam 2025 – The Comprehensive All-in-One Guide to Exam Success!

Escheat is a legal concept that refers to the state's right to claim ownership of property when an individual dies intestate (without a will) and has no known heirs. This means that if someone passes away and there are no family members or beneficiaries to inherit their assets, the state steps in to prevent the property from becoming unclaimed or abandoned. This right of the state ensures that the property ultimately serves the public good rather than sitting in limbo.

The other options provided do not accurately define escheat. The right of heirs to inherit property pertains to inheritance laws rather than the state's claim over unclaimed property. The process of transferring property to a living trust involves estate planning mechanisms, while a property tax exemption refers to reductions in property taxes, which are unrelated to the concept of escheat. Thus, option B accurately captures the meaning of escheat in legal terms.