Under which circumstance does the property go to the state?

The correct answer is related to the concept of intestate succession. When a person dies without a will—known as dying intestate—and has no legal heirs to inherit their property, the state steps in to claim the estate through a process called escheat. This ensures that the property does not remain ownerless and can be put to public use.

In cases where a will is contested, the distribution of the estate can still proceed based on the terms of the will or through legal proceedings to settle the contest. If property is abandoned, there may be other legal processes involved to determine ownership before it can be claimed by the state. Outstanding debts may lead to claims against the estate, but they do not result in the state receiving the property; instead, debts must typically be settled prior to distribution of any remaining assets.

Therefore, the situation where a person dies intestate with no heirs clearly leads to state ownership, as there is no one to inherit the property.