The Timeline of Escheatment: How Long Before Your Property Is Sent to the State

By Claim My CA Property – Professional Asset Investigators/Finders
https://claimmycaproperty.com

Introduction

Have you ever wondered what happens to a dormant bank account, an uncashed check, or an unclaimed refund? These assets don’t just disappear—they eventually become unclaimed property and are escheated to the State of California. The process of transferring unclaimed property to the state is known as escheatment.

This blog post explores the timeline of escheatment in California—how long a business or institution must wait before reporting unclaimed property, what happens during that period, and how long you have to claim it once it’s in the state’s hands. Whether you’re a property owner, heir, or business owner, understanding the escheatment process is the first step to ensuring no money is left behind.

What Is Escheatment?

Escheatment is the legal process by which unclaimed or abandoned property is turned over to the state government. In California, this responsibility falls under the Unclaimed Property Program run by the State Controller’s Office.

The goal of the program is to protect the property until it can be reunited with its rightful owner or their heirs. Unclaimed property can include:

Dormant bank accounts
Uncashed checks (payroll, refunds, dividends)
Unclaimed insurance proceeds
Stocks, bonds, and mutual funds
Royalties and residuals
Safe deposit box contents

Escheatment Timeline Overview

The escheatment timeline involves several phases that occur before the property is officially transferred to the state. Here is a typical flow:

Dormancy Period
Due Diligence Period
Reporting Deadline
Transfer to the State
Public Access and Claim Window

Let’s break each phase down.

1. Dormancy Period: How Long Before Property Is Considered Abandoned?

Each type of property has a specific dormancy period—the time during which there has been no owner-initiated activity. After this period, the property is presumed abandoned. In California, common dormancy periods include:

Bank Accounts: 3 years of inactivity
Uncashed Checks: 3 years
Life Insurance Benefits: 3 years after death
Utility Refunds: 1 year
Payroll Checks: 1 year
Stocks and Dividends: 3 years without owner contact
Safe Deposit Boxes: 3 years after lease expires or unpaid

During the dormancy period, the holder (bank, employer, company, insurer, etc.) is required to make efforts to locate the property owner, though efforts vary by industry.

2. Due Diligence Period: Reaching Out Before Reporting

Before escheating property to the state, holders must make a good faith effort to notify the owner. This is known as the due diligence period, typically conducted 6 months before the final report.

For instance, if a bank account has been dormant for 3 years, the financial institution must send a notice to the last known address within 6–12 months before reporting the account as unclaimed.

Important note: If you receive a notice like this—act quickly. You have a small window to reclaim your property directly from the business without having to go through the state’s formal claims process.

3. Holder Reporting Deadline: When Companies Must Report

Once the dormancy and due diligence periods are complete, holders must file a report with the California State Controller’s Office.

The holder reporting deadline is typically:

October 31 for most companies
April 30 for life insurance companies

There are two phases to this:

Notice Report: Initial report to the State Controller without transferring the property
Remit Report: Final report that includes the actual transfer of the property

Once the remit report is filed, the assets are officially escheated and held by the State of California.

4. Escheatment: When Property Is Transferred to the State

After the holder files the Remit Report and sends the property to the State Controller’s Office, the escheatment process is complete. The property is now publicly listed on the California Unclaimed Property database and can be claimed by the rightful owner at any time.

Escheated funds are held indefinitely by the state. However, safe deposit box contents are only held for 18 months before the items are auctioned, with the proceeds credited to the owner’s name.

5. Reclaiming the Property: The Claim Process

Once your property is escheated, you can recover it by submitting a claim through the State Controller’s website. The process includes:

Submitting an online or mail-in claim
Providing proof of identity and ownership
For estates, providing probate or legal documents

Claims can take 90 days to over a year, depending on the complexity and documentation required.

You can search for unclaimed property here:
👉 https://ucpi.sco.ca.gov/ucp/

Case Example: How Long Did It Take?

Case Study: Linda’s Forgotten Bank Account

Linda moved out of California in 2016 and forgot about a small checking account that had a $2,100 balance. She never closed it, and there were no deposits or withdrawals for 3 years. In 2019, her bank classified the account as dormant and mailed a notice in early 2020. Since Linda never updated her address, the letter was returned.

By October 2020, the bank filed its holder notice and remit reports. The funds were sent to the state by June 2021. Linda didn’t realize this until 2023, when she found her name on the State Controller’s website and filed a claim. The total process from inactivity to escheatment took 5 years.

How to Prevent Escheatment

To avoid having your property escheated:

Keep your contact information updated with banks, insurers, and employers
Cash checks promptly
Initiate contact with your accounts at least once a year
Review old email addresses linked to investment platforms
Check for unclaimed property annually

If you’re an heir, check your deceased relatives’ names too!

How Claim My CA Property Helps

Even though the process sounds straightforward, many people face obstacles such as:

Missing documents
Confusion over legal names or business entities
Needing probate or court documentation
Dealing with multiple family members or heirs

At Claim My CA Property, we:

Investigate claims in-depth
Locate dormant assets across state and federal systems
Prepare and file all required paperwork
Handle communication with government agencies
Assist with complex heirship and estate recovery

You don’t need to navigate the escheatment maze alone—we’re here to make sure nothing gets left behind.

Escheatment Timeline Summary Chart

Property Type	Dormancy Period	Due Diligence	Escheatment Deadline	Auction/Disposition
Bank Accounts	3 years	6–12 months	Oct 31	N/A
Payroll Checks	1 year	6 months	Oct 31	N/A
Life Insurance	3 years (after death)	6 months	Apr 30	N/A
Safe Deposit Boxes	3 years	6 months	Oct 31	Auction after 18 months
Stocks/Dividends	3 years	6 months	Oct 31	Sold after transfer

Conclusion

Understanding the timeline of escheatment is crucial for anyone who owns financial assets or is responsible for an estate. From the moment your property goes inactive, the clock starts ticking—and if you wait too long, you may be dealing with the State of California instead of a simple account recovery.

If you’re unsure whether you or a loved one has unclaimed assets, let Claim My CA Property do the heavy lifting. We track, file, and recover your lost property with care and legal precision.

👉 Start today at: https://claimmycaproperty.com