Escheatment meaning.
Escheatment is the process where dormant or abandoned property is turned over to the state after the holder cannot return it to the owner.
Plain English: a company loses contact with the owner, waits the required time, then sends the property to the state.
Common examples
- Old bank accounts.
- Uncashed payroll or refund checks.
- Utility deposits.
- Insurance proceeds.
- Securities, dividends, or account credits.
- Safe-deposit contents.
Why it matters
If money has escheated to a state, the original company may no longer hold it. You may need to search the state unclaimed property system instead.