Financial Software Innovations, Inc

Unclaimed Property

Unclaimed property refers to financial assets or tangible property that has been left inactive or "abandoned" by its rightful owner for a specified period, often referred to as a dormancy period. This period varies by state and by the type of property involved, ranging from one to seven years.

Escheat (or escheatment) is the legal process by which unclaimed property is transferred to the state after the dormancy period has lapsed. States have escheat laws in place to prevent financial institutions or businesses from holding onto these assets indefinitely. Once property is escheated, the state assumes custody of it but does not take ownership, keeping it available for the rightful owner to reclaim.

Common types of unclaimed property include:

Bank accounts
Uncashed checks
Securities (such as stocks or bonds)
Insurance proceeds
Safe deposit box contents

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Understanding Unclaimed Property and Escheat

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