Abandoned Assets
In California, an asset becomes “abandoned” and is sent to the state when the owner has not taken any action or had contact with the holder (e.g., a bank, business, or institution) for a specific period, known as the dormancy period. Here’s how the process works:
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Dormancy Period
The asset (e.g., a bank account, uncashed checks, stocks, insurance payouts) remains unclaimed for a set period, typically three years for most types of property. The dormancy period varies depending on the type of asset. During this period, the holder must attempt to contact the asset owner using the last known address or communication method.
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Notification Requirement
Before the property is deemed abandoned, the holder must make a good faith effort to notify the owner. This usually includes sending a notice to the last known address 6 to 12 months before the property is due to be reported to the state.
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Reporting and Transferring to the State
If the owner does not respond and the asset remains inactive, the holder is required to report the property as unclaimed to the California State Controller’s Office. After reporting, the holder transfers the asset to the state, where it is held in trust for the rightful owner.
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State Holds the Property
The California State Controller’s Office takes custody of the abandoned property and maintains it in their Unclaimed Property Program. The state holds the property indefinitely until the rightful owner or heirs claim it.
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Claiming the Propery
The original owner or their heirs can file a claim with the state at any time to retrieve the property by providing proof of ownership.
Types of Assets Sent to the State
- Bank accounts (checking, savings)
- Uncashed checks (payroll, refunds)
- Stocks, bonds, and dividends
- Insurance policies
- Safe deposit box contents
- Utility refunds
- Escrow accounts
California’s unclaimed property law is designed to safeguard abandoned assets and ensure they can be claimed by the rightful owners whenever they come forward.
