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escheat
(redirected from escheatable)

   Also found in: Dictionary/thesaurus, Legal, Financial, Wikipedia 0.06 sec.

escheat

In feudal society, the reversion of lands to the lord in the event of the tenant dying without heirs or being convicted for treason. By the late Middle Ages in Western Europe, tenants had insured against their lands escheating by granting them to trustees, or feoffees, who would pass them on to the grantor nominated in the will. Lands held directly by the king could not legally be disposed of in this way.


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The "contacts" test as applied in this field is not really any workable test at all--it is simply a phrase suggesting that this Court should examine the circumstances surrounding each particular item of escheatable property on its own peculiar facts and then try to make a difficult, often quite subjective, decision as to which State's claim to those pennies or dollars seems to be stronger than another's.
The ultimate costs for the states to audit business-to-business transactions and accurately calculate a company's liability and the costs for companies to defend such audits may likely exceed the amount of escheatable property.
As the result of a Suspicious Activity Report filed by Bankers Trust, the Federal Reserve conducted a targeted review of certain activities of the bank involving escheatable funds.
 
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