The term sequestration is based on the Latin sequestrare, which means set aside or surrender. It is derived from sequester, a depositary or trustee, one in whose hands a thing in dispute was placed until the dispute was settled. In English "sequestered" means secluded or withdrawn.
In law, sequestration is the act of removing, separating, or seizing anything from the possession of its owner under process of law for the benefit of creditors or the state.