The Timeline of Escheatment: How Long Before Your Property Is Sent to the State?
Introduction
Every year, billions of dollars in unclaimed property are turned over to U.S. states — and California holds a significant portion of it. This property ranges from forgotten bank accounts to uncashed checks, insurance payouts, and dormant stock dividends. Many people don’t even realize their money or assets have been transferred to the state due to a process known as escheatment.
But how does escheatment work in California? More importantly, how long does it take before your property is officially sent to the state?
In this post, we’ll break down the entire escheatment timeline, explain what triggers the process, what deadlines holders must follow, and how you can protect your assets or reclaim what’s already been transferred to the California State Controller’s Office.
What Is Escheatment?
Escheatment is the legal process by which unclaimed or abandoned property is turned over to the state. In California, this responsibility falls to the State Controller’s Office (SCO). The goal of escheatment is to protect the assets of people who have lost contact with their financial institutions or have failed to claim funds for an extended period.
This process is governed by the California Unclaimed Property Law, codified in the California Code of Civil Procedure Sections 1500–1582.
What Types of Property Can Be Escheated?
Before diving into the timeline, it helps to know what kinds of property can become subject to escheatment. Examples include:
- Savings and checking accounts
- Uncashed payroll checks
- Utility refunds or deposits
- Life insurance payouts
- Stocks, mutual funds, or dividends
- Safe deposit box contents
- Trust distributions
- Royalties
- Escrow balances
These assets become unclaimed when there’s no owner activity or contact for a statutory period — and that’s where the timeline begins.
Step-by-Step: The Escheatment Timeline in California
Let’s break down the general escheatment timeline and what happens at each stage.
1. Dormancy Period Begins (1 to 3+ Years)
The escheatment process officially begins when an account or property becomes dormant — that is, there has been no owner-initiated activity for a certain period.
Dormancy Triggers:
- No communication from the owner
- No deposits or withdrawals
- Returned mail with no forwarding address
Typical Dormancy Periods in California:
| Property Type | Dormancy Period |
|---|---|
| Bank accounts | 3 years |
| Uncashed payroll checks | 1 year |
| Safe deposit boxes | 3 years |
| Life insurance proceeds | 3 years |
| Stock dividends or bonds | 3 years |
| Escrow or trust funds | 3 years |
| Court or public agency funds | 3 years |
This dormancy period acts like a countdown. Once the clock runs out, the property is eligible for escheatment.
2. Holder Due Diligence Notification (180 Days Before Reporting Deadline)
Before a company or organization (called a “holder”) reports dormant property to the state, it must try to contact the rightful owner.
California Requirement:
At least 180 days before the property is reported to the state, the holder must send a due diligence letter to the owner’s last known address.
This notice should include:
- Description of the property
- How to claim it from the holder directly
- A deadline for response
If the owner responds, the process stops and the property remains with the holder.
If there’s no response, the process continues.
3. Reporting to the State (October 31 for Most Holders)
If the dormancy period has expired and the owner hasn’t responded to the due diligence letter, the holder must report the property to the California State Controller’s Office.
Key Deadlines:
- Report Year: July 1 to June 30
- Notice Report Deadline: Before November 1
- Remit Report Deadline: Between June 1–15 of the following year
There are two key reports:
- Notice Report (Preliminary Report): Identifies the accounts likely to be turned over.
- Remit Report: Confirms final details and delivers the funds/assets to the state.
4. Owner Notice from the State (After Notice Report Filed)
Once the Notice Report is submitted, the State Controller’s Office sends its own notices to owners, encouraging them to claim their property before the state takes possession.
If claimed at this stage, the funds are never transferred to the state’s unclaimed property fund.
If unclaimed, the process proceeds to final escheatment.
5. Final Escheatment (By June of the Following Year)
By the following June, holders must file the Remit Report and deliver the property to the State Controller.
At this point, the property is officially escheated and becomes part of California’s Unclaimed Property Database, accessible at https://ucpi.sco.ca.gov.
So, How Long Does It Really Take?
The time it takes from inactivity to full escheatment varies depending on the property type, but here’s a general example:
Example: Bank Account
- 2020 – Last customer activity
- 2023 – Dormancy period ends (3 years)
- Mid-2023 – Holder sends due diligence letter
- October 2023 – Holder files Notice Report with the state
- June 2024 – Final Remit Report sent; property escheated
Total Timeline: ~4 years from last activity to full state custody
How to Prevent Your Property From Being Escheated
You don’t want your money to fall into government hands unnecessarily. Here’s how to prevent that from happening:
- Keep Accounts Active
- Log in online
- Make deposits/withdrawals
- Send written communication
- Update Contact Information
- Especially after moving or changing names
- Cash All Checks Promptly
- Especially payroll or refund checks
- Consolidate Old Accounts
- Close or combine dormant accounts
- Inform Beneficiaries and Heirs
- Let them know where assets are kept and who to contact
- Open Safe Deposit Boxes Regularly
- This avoids them being flagged as abandoned
How to Reclaim Property After Escheatment
If your property has already been turned over, you can still get it back by filing a claim with the California State Controller’s Office.
Step-by-Step:
- Search for Your Name on the official database: https://ucpi.sco.ca.gov
- Submit a Claim Form
- Provide Supporting Documents
- ID
- Proof of ownership
- Proof of address (for older accounts)
- Wait for Review (2–12+ weeks)
For large or complex claims, especially those involving deceased relatives, you may need help from a professional asset recovery service like Claim My California Property (CMCP).
The Importance of Acting Quickly
Many people ignore escheatment notices or are unaware of their property being at risk. But once funds are escheated, reclaiming them can be time-consuming — especially if:
- The records are outdated
- The owner is deceased
- The claim involves multiple heirs
And while California does not take permanent possession (meaning there’s no time limit to file a claim), delays can make it harder to gather the required documents or prove rightful ownership.
How CMCP Can Help You
At Claim My California Property, we help individuals and families locate, verify, and reclaim property that has been escheated to the State of California.
Whether you’re:
- A relative trying to claim funds from a deceased loved one
- A business owner who never received a deposit refund
- An heir named in an old trust or will
We can help.
Our team of professional asset investigators:
- Research the full property history
- Locate supporting documents
- File the correct paperwork with the Controller’s Office
- Communicate with government agencies on your behalf
You don’t need to navigate this complex process alone.
Conclusion
Understanding the escheatment timeline in California can save you — or your loved ones — years of frustration and potentially lost money. It can take as little as 1 to 3 years of inactivity for your property to be flagged as unclaimed, and within a year after that, it could be officially turned over to the state.
Don’t let your hard-earned assets disappear into the government’s coffers.
✅ Search now: https://ucpi.sco.ca.gov
✅ Need help? Visit https://claimmycaproperty.com to start your claim with expert guidance.
25 Internal & External Backlinks
- https://claimmycaproperty.com
- https://ucpi.sco.ca.gov
- https://www.sco.ca.gov/upd_msg.html
- https://www.sco.ca.gov/upd_faq.html
- https://www.sco.ca.gov/upd_form_instruction.html
- https://www.dbo.ca.gov
- https://www.consumerfinance.gov
- https://www.irs.gov/refunds
- https://www.fdic.gov/resources/consumers/unclaimed-property
- https://www.usa.gov/unclaimed-money
- https://www.ftc.gov
- https://www.napo.org
- https://www.sco.ca.gov/upd_holders.html
- https://www.nccusl.org/unclaimedproperty
- https://www.sco.ca.gov/upd_deadlines.html
- https://www.naic.org
- https://www.sec.gov
- https://www.investor.gov
- https://www.nolo.com/legal-encyclopedia/unclaimed-property-basics.html
- https://www.unclaimed.org
- https://www.nytimes.com/guides/money/how-to-find-unclaimed-money
- https://www.latimes.com/california/story/2023-06-01/how-to-claim-unclaimed-money-in-california
- https://www.forbes.com/advisor/banking/unclaimed-money
- https://www.calbar.ca.gov
- https://www.bbb.org/article/tips/14005-bbb-tip-unclaimed-property-scams