What occurs if a person dies without a will and no heirs exist regarding their property?

When a person dies without a will and there are no heirs to claim their property, the legal principle of "escheat" comes into play. Under escheat laws, the state takes ownership of the deceased individual’s property. This process is designed to ensure that property does not remain ownerless and can instead be utilized for public benefit.

In this situation, the state will typically conduct a search for any potential heirs, but if none are found after a reasonable effort, the property is transferred to the state authority. This serves a crucial purpose in estate law, enabling the government to reallocate the property in a manner that could support various public programs or initiatives.

The other options presented do not align with legal practices regarding property after death without a will and heirs. Therefore, the correct understanding of the law is that the state appropriates the property in the absence of heirs.