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

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

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

Introduction: What Is Escheatment?

“Escheatment” may sound like an obscure legal term, but it plays a major role in how unclaimed property is handled in California and across the U.S. It refers to the process by which abandoned or unclaimed assets are transferred from a business, bank, or other institution to the State Controller’s Office after a certain period of inactivity.

If you’ve ever left a bank account dormant, failed to cash a check, or lost track of a retirement account—your money may have already escheated to the state. Understanding the timeline of escheatment is key to avoiding the loss of your assets and reclaiming what may already be held by California.

What Triggers Escheatment?

At its core, escheatment happens when there has been no activity or contact between the property holder (you) and the institution holding your property (e.g., bank, employer, insurance company) for a legally defined dormancy period.

Common triggers include:

No withdrawals or deposits in a bank account
Uncashed paychecks or refund checks
No contact with a financial institution
An expired gift card or prepaid account
No activity on an insurance policy or 401(k)
Failure to respond to due diligence letters

Once the dormancy period is over, the institution must notify you—then report and send the property to the state.

The Escheatment Timeline: A Step-by-Step Breakdown

Here is a general timeline of how escheatment unfolds in California:

Step 1: Dormancy Period Begins (Year 0)

This is the moment your property becomes inactive or abandoned. The length of the dormancy period depends on the type of asset.

Property Type	Dormancy Period (California)
Bank Accounts	3 years
Uncashed Checks	3 years
Insurance Proceeds	3 years after maturity
Safe Deposit Boxes	3 years after lease expires
Stocks & Dividends	3 years
Retirement Accounts (IRA/401k)	3 years after required distribution date
Wages / Payroll Checks	1 year
Escrow Accounts	3 years

Once this period begins, the clock starts ticking toward escheatment.

Step 2: Holder Review and Due Diligence (Year 3 or Final Year of Dormancy)

Before escheating the property, the business or organization must attempt to contact the owner:

Send a due diligence letter to the last known address
Advise the owner that the property will be reported to the state if no action is taken
Provide instructions on how to reclaim the property before transfer

If the owner does not respond or take action, the property is officially considered unclaimed.

Step 3: Reporting to the State (Annually by November 1st)

Holders must report unclaimed property to the California State Controller’s Office every year. For most property types, the deadline is before November 1.

During this step:

The business prepares a detailed report of all unclaimed assets
The report includes owner names, last known addresses, and property descriptions
If the property remains unclaimed, it will be escheated to the state

Step 4: Property Escheats to the State (December 1st Deadline)

By December 1st, the holder transfers the actual assets to the State of California. This can include:

Physical checks or ACH transfers for money
Physical contents from safe deposit boxes
Electronic transfers of stock shares

At this point, the property is no longer with the original holder—it is now in the custody of the state.

Step 5: State Listing and Claim Availability (Within Months)

Once the property is received, the State Controller’s Office:

Posts the property in the Unclaimed Property Database
Allows rightful owners to submit claims online
Will hold the property indefinitely until claimed (California does not take ownership)

This is the point at which Claim My CA Property can step in to help you reclaim what is rightfully yours.

Real-Life Example: The Lost Escrow Refund

Consider the case of Carmen, who sold her house in Riverside, CA in 2018. Her title company mailed an escrow refund check of $3,750 to her old address, but she never received it. The check remained uncashed for over three years. In 2022, it was reported to the State Controller and escheated.

Carmen only discovered the missing funds in 2024, when working with Claim My CA Property. We found the refund in the state database and helped her recover it—along with interest.

How to Prevent Your Property from Being Escheated

If you want to protect your assets and prevent the state from taking custody of them, here are some proactive steps:

✅ Keep Accounts Active

Make small deposits or log in regularly to avoid dormancy.

✅ Cash All Checks Promptly

Even if it’s a small amount, uncashed checks often trigger escheatment.

✅ Update Your Contact Info

Make sure banks, employers, and insurers have your current address.

✅ Respond to Due Diligence Letters

If you receive a letter about unclaimed property—take action immediately.

✅ Consolidate Old Accounts

Close unused bank accounts, transfer old 401(k)s, and avoid fragmentation.

How Claim My CA Property Can Help You Reclaim Escheated Assets

Even if your property has already been escheated to the state, it’s not too late to get it back. At Claim My CA Property, we specialize in:

🔍 Property Discovery

We run deep searches across the California Unclaimed Property Database and cross-reference national records.

🧾 Documentation Assistance

We help gather, prepare, and file all claim documents, including identity, address history, estate filings, and more.

👨‍👩‍👧‍👦 Heir and Estate Recovery

We assist surviving family members in retrieving escheated assets from deceased relatives.

🗃️ Complex Claims

We handle business, trust, and corporate account claims that involve multiple owners or legal documents.

How Long Does the State Hold Escheated Property?

Unlike some other states, California does not take ownership of unclaimed property. It is held in perpetuity for rightful owners or heirs to claim.

However, interest is not always paid, and heirs may face additional hurdles if ownership isn’t documented. That’s why early recovery is key.

How Long Does It Take to Claim Back Property?

While some claims are processed in 30–90 days, complicated claims involving estates, businesses, or multiple owners may take 6–12 months.

Using a professional service like Claim My CA Property can significantly reduce errors and speed up the process.

Key Takeaways

Escheatment happens when there’s no owner activity for a legally defined period
Dormancy periods vary by asset type (1 to 3 years in most cases)
Businesses must perform due diligence before escheating property
By December 1st, unclaimed property is transferred to the State Controller
California holds property indefinitely for rightful owners
Claim My CA Property can help you search for and reclaim lost assets

Ready to Find Out If You Have Unclaimed Property?

Check for your name or your loved ones at https://claimmycaproperty.com and let our expert team help you claim what’s yours.

📞 Free Consultation Available Now
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