Financial Wellness

What to Do If Your Property Is Escheated

Reclaim property that was transferred to the state government.

As a financial institution, we are required to follow the escheatment process as governed by state laws. Escheatment is a legal process requiring financial institutions, insurance companies, and other entities to transfer dormant property to the state. Unfortunately, each year, this results in transferring funds from inactive accounts to the government.

The state of California requires unclaimed property — bank accounts, stocks, uncashed checks, insurance benefits, wages, contents of safe deposit boxes, and even real property — with dormancy periods of 3 years to be escheated. The rules and time frames for escheatment vary by state.

How to Reclaim Escheated Property

If your property has been transferred to the state, you may still reclaim those escheated funds.

Keep in mind that each state has its own rules, time frames, and processes for escheatment.

Search for Unclaimed Property

Check state-run websites or databases to see if your property is listed. Each state has a dedicated office for this. You can enter your name or the name of a deceased relative to see if there are any unclaimed assets.

File a Claim

You’ll need to file a claim with the state’s unclaimed property office if you find property that belongs to you. This usually involves filling out a claim form, along with submitting proof of identity and ownership.

Documentation to prove your ownership of the property may include:

• A government-issued identification
• Proof of address
• Relevant documentation linking you to the property
• For heirs, proof of relationship to the deceased owner

Verification and Payment

The state will review the claim for escheated property and verify the information provided. The time needed for the verification process will depend on the claim’s complexity and the state’s procedures.

If the state deems the claim of escheated funds valid, they will release the property or its equivalent value to the claimant. This may be done via check, direct deposit, or other means, depending on the state’s policies.

Contact the State Office

If you have trouble locating or claiming your property, contact the government office handling escheatment for your state.

Keep Records

Maintain records of all communications and documents related to your claim. This can be useful if any issues or delays occur.

Follow-Up

In some cases, additional information or documentation may be required. Be prepared to respond promptly to any requests from the state’s unclaimed property office to avoid delays.

Appeals

If your claim is denied, you may have the option to appeal the decision. The appeals process varies by state, so you’ll need to follow the specific guidelines provided by the state’s unclaimed property office.

Keep Your Assets Protected

At CEFCU, before escheatment occurs, we make diligent efforts to contact account owners, sending multiple notices to the last known address and attempting other forms of communication. When these efforts fail, we must transfer the property to the state authority, which holds the funds for a limited period to allow the owner, beneficiary, or legal heir to make a claim.

Our Financial Wellness article, Is Your Account at Risk? Simple Steps to Avoid Escheatment, helps explain how to prevent escheatment.

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