What happens to the property of a person who dies intestate with no heirs?

When a person dies intestate, meaning they did not leave a valid will, and has no heirs to inherit their property, the legal principle of escheat comes into play. Escheat is a situation in which the state takes ownership of the deceased person's property. This occurs because, under law, every piece of property must have an owner, and when no heirs or beneficiaries are identified, the state steps in as the owner. This process ensures that abandoned property is not left in limbo but is claimed by the government, which can then repurpose or use it for public benefit.

The other options are scenarios that could apply under different circumstances but do not accurately reflect the legal outcome when someone dies intestate with no heirs. Distributing to relatives would require the presence of known relatives, while selling the property at public auction does not apply unless there are heirs who cannot maintain the estate. Local governments typically do not claim property unless specified, as the state has the primary responsibility through escheat laws.