The article is devoted to the study of the problematic aspects of the institute of recognition of the inheritance as escheated based on the analysis of the relevant rules of the Civil Code of Ukraine and the Code of Civil Procedure of Ukraine, international treaties, scientific concepts, as well as judicial practice. The author defines the term «escheated inheritance», and provides the analysis of the substantive grounds and some issues of procedural order of recognition of the inheritance as escheated. The author points at peculiarities of the legal status of the local community as a successor of the antecessor, and place greater emphasis on the specifics of regulating recognition of inheritance with participation of foreign persons as escheated. As a result of the study the theoretical conclusions and evidence-based suggestions for improving the Ukrainian legislation have been set up.