What happens to unclaimed property, usually from a death?

Unclaimed property, especially in the context of a person's death, is typically handled according to state laws regarding inheritance and unclaimed assets. When an individual passes away and leaves behind property or assets that cannot be claimed by any heirs or that do not have a clear designated beneficiary, the property is generally considered unclaimed.

In California, unclaimed property ultimately passes to the state after a specific period, often referred to as the dormancy period. This means that if no rightful owner steps forward to claim the property within the designated time frame, the state assumes custody of the property. This process not only helps to manage unclaimed assets but also allows the state to maintain a record of ownership and potentially fund state programs with the unclaimed funds.

The other choices would imply different outcomes. Redistribution to heirs would suggest there is an identifiable group of heirs, which is not the case when property is classified as unclaimed. While it's true that certain items might be auctioned off or sold, this would generally occur after the state has gained custody of the property. Likewise, although unclaimed property technically becomes state property, the phrasing of "it passes to the state" better reflects the legal process and authority exercised over the unclaimed assets.