Escheat refers to the legal process by which unclaimed or abandoned property reverts to the state when the rightful owner cannot be located. In California, the state has specific laws governing escheat, which apply to various types of property, including financial accounts, personal property, and real estate.
Escheat in California
California holds billions of dollars in unclaimed property. The amount can fluctuate as new unclaimed assets are reported and claims are processed. As of 2023, it is estimated that California’s unclaimed property fund contains over $10 billion. This includes a wide range of assets, such as uncashed checks, bank accounts, stocks, and other financial holdings.
Different types of property have varying time frames for when they are considered abandoned. Financial accounts (checking, savings), stocks and dividends, insurance proceeds, utility deposits and uncashed checks are common categories of unclaimed property. Bank accounts are generally considered unclaimed after three years of inactivity. Uncashed checks must remain unclaimed for three years. Life insurance policies also may be escheated if the owner has not claimed benefits for three years.
Businesses and organizations holding unclaimed property must report it to the California State Controller’s Office. They are required to attempt to contact the owners before escheating the property.
Once property is escheated to the state, the California State Controller’s Office takes custody of the property. The state maintains a database of unclaimed property, making it accessible for owners to search and claim their assets.
How to Search and Claim Unclaimed Property
If you suspect you may have unclaimed property in California, follow these steps to search and claim it:
Go to the California State Controller’s Office Unclaimed Property Division website. This site provides access to the state’s database of unclaimed property.
Use the search tool available on the website. Enter your name or the name of the business/entity you believe may have unclaimed property. You can also search for relatives or businesses associated with you.
The results will show any matching unclaimed properties, including details such as name of the owner, description of the property, and amount or value of the property.
If you find unclaimed property that belongs to you, click on the property entry to access more details. Follow the instructions to file a claim. This typically involves completing a claim form and providing identification or documentation to prove ownership.
Claims can often be submitted online or by mail, depending on the nature of the property. Be sure to keep copies of all documents for your records. After submitting your claim, you may receive a confirmation. The processing time can vary, but you can check the status of your claim on the same website.
The National Association of Unclaimed Property Administrators also provides access to search all 50 states at https://unclaimed.org/