Escheat

Why do legal terms always sound like people are trying to talk while sucking on a jawbreaker?

Escheat sounds like some candy-mouthed lawyer is trying to say "he cheats" or "these sheets." But, no, you heard your lawyer right. She said "escheat."

It means that someone died without having any legal heirs, so there's no one to inherit their property. Therefore, everything is going to the state.

The idea dates back to at least feudal times, when the king would take over property for nobles who died without heirs.

There's another situation that comes up in our current non-feudal times. If a financial asset or a brokerage/bank account has been abandoned (i.e. no activity for a long time), the firm is supposed to try to find the person who owns it. If they can't, it enters the escheatment process, which eventually ends with the government taking over as the account holder.