Cal. Code Regs. tit. 18 § 14515
A distribution to the State of any property of a person dying on or after June 25, 1935 (the effective date of the Inheritance Tax Act of 1935), to which the State is entitled by reason of escheat, does not constitute a transfer subject to the Inheritance Tax Law. However, if after such distribution the property is delivered pursuant to law to any heir of the decedent entitled thereto, a transfer is deemed to have been made to the heir as of the date of death of the decedent.
A distribution to the State of any property of a person dying prior to June 25, 1935, to which the State is entitled by reason of escheat, constitutes a transfer subject to the Inheritance Tax Law. In such case the tax is computed as though the transfer is made to a stranger. If the property is subsequently delivered pursuant to law to any heir of the decedent whose relationship to the decedent is nearer than that of a stranger, a refund will be made as in the case of a tax paid upon a transfer subject to a contingency or condition, (see Revenue and Taxation Code Section 13411).
NOTE: Reference: Section 14515, Revenue and Taxation Code.
Cal. Code Regs. Tit. 18, § 14515