There is a public office handling this. Normally it is on the municipal or city level but it depends. This office is the default executor of estate and will inform the next of kin, look for a will, handle the burial, liquidation of assets and distribution of inheritance. If a better fitting executor of estate is found then they will transfer these tasks to them. When there is no will or the will is lacking details the executor of estate have to make judgements based on what they think the deceased wanted.
If there are no inheritors as there are no will and no next of kin then the most of these offices will take the money for themselves. This helps pay for burials for people without money. But this does depend on the local legislation and can change. Some places the money is given to charity, other places it is collected by the authorities to be used on anything. But in general these offices do run a deficit even if they get all the unclaimed inheritance.
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