What Is Escheat?

Escheat is the right of a government to take ownership of estate assets or unclaimed property in the event there are no heirs or beneficiaries. Escheat rights can also be granted when assets are unclaimed for a prolonged period. These situations can also be referred to as bona vacantia or simply unclaimed property.

The concept of escheat maintains that property always has a recognized owner, which would be the state or federal governments if no other claimants to ownership exist or are readily identified. In the U.S., has its own laws and regulations governing escheat rights and related matters.

Understanding Escheat

Escheat is a government’s right to property if it is unclaimed for any reason after some time. Escheat rights can be granted by a court of law or given following a standard period. In the case of death with no will or heirs, escheat rights may be granted to a state in a probate decision.

Each state in the U.S. has rules and regulations governing escheat rights. Often, property that has been escheated may later be reclaimed. Some states may incorporate a statute of limitations, which creates an expiration date after which reclaiming property is no longer allowed.

Escheatment is the process of transferring assets to the state. Escheat rights are often revocable—reclamation rights can extend into perpetuity if no statute of limitations exists. This means that ownership of an estate or property assets could revert to a lawful heir or owner should one turn up. U.S. states also have processes and procedures for granting escheat rights when property has been unclaimed for a prolonged period. These processes vary by the type of asset, and usually by state. Some of the accounts that can become escheated are:

• Checking accounts
• Brokerage accounts
• Retirement accounts
• Annuity contracts and accounts
• Pension accounts
• Savings accounts

Escheat and Death

In the case of death, estate assets with no will are considered intestate. All deaths and death wishes usually go through a probate court for final determination. Intestate deaths also go through probate, which involves researching heirs who may be given property assets. for inheriting assets intestate may include spouses, siblings, aunts, uncles, nieces, nephews, cousins, and potentially other distant relatives. If a probate court finds no heirs for unclaimed assets in death, then a judge would grant escheat rights to the state. Escheat may also occur if a will or trust is deemed defective and legal heirs to an estate cannot be readily identified. Generally, identifying heirs in most intestate deaths foregoes the need for escheatment. However, escheat can also kick in if an individual's legal heirs are deemed incompetent to manage the inheritance, and no other rightful heirs can be identified.

Escheatment of Unclaimed Assets

Escheat rights can be granted to the government for different types of assets. Assets may include real estate or bank deposits and unclaimed securities in accounts that have been dormant for a prolonged period.

Financial institutions and keep records of inactivity, labeling inactive accounts dormant after a specified period. Financial institutions keep records of dormant accounts. These accounts are usually required to be turned over to the government after a specified period, typically determined by each state.

By law, financial institutions with dormant accounts are usually required to make efforts—such as sending reminders and issuing notices—to locate the owners of these assets before finally transferring them to the state through escheatment.

Each state determines the time frame for granting escheat rights to the government and the process for doing so. For financial accounts, escheatment often occurs automatically after a specified amount of time has elapsed. This table shows each state's escheatment timing for bank accounts, checks, and earnings.

State	Bank Account	Checks/Drafts	Earnings
Alabama	3 years	3 years	1 year
Alaska	5 years	5 years	1 year
Arizona	3 years	3 years	1 year
Arkansas	3 years	3 years	1 year
California	3 years	3 years	1 year
Colorado	5 years	5 years	1 year
Connecticut	3 years	3 years	1 year
Delaware	5 years	5 years	5 years
District of Columbia	3 years	3 years	1 year
Florida	5 years	5 years	1 year
Georgia	5 years	5 years	1 year
Hawaii	5 years	5 years	1 year
Idaho	5 years	5 years	1 year
Illinois	3 years	3 years	1 year
Indiana	3 years	3 years	1 year
Iowa	3 years	3 years	1 year
Kansas	5 years	5 years	1 year
Kentucky	3 years	3 years	1 year
Louisiana	5 years	5 years	1 year
Maine	3 years	3 years	1 year
Maryland	3 years	3 years	3 years
Massachusetts	3 years	3 years	3 years
Michigan	3 years	3 years	1 year
Minnesota	3 years	3 years	1 year
Mississippi	3 years	5 years	5 years
Missouri	5 years	5 years	3 years
Montana	5 years	5 years	1 year
Nebraska	5 years	5 years	1 year
Nevada	3 years	3 years	1 year
New Hampshire	5 years	5 years	1 year
New Jersey	3 years	3 years	1 year
New Mexico	5 years	5 years	1 year
New York	3 years	3 years	1 year
North Carolina	5 years	5 or 7 years	1 year
North Dakota	5 years	2 years	2 years
Ohio	5 years	5 years	1 year
Oklahoma	5 years	5 years	1 year
Oregon	3 years	3 years	3 years
Pennsylvania	3 years	3 years	2 years
Rhode Island	3 years	3 years	1 year
South Carolina	5 years	5 years	1 year
South Dakota	3 years	3 years	1 year
Tennessee	3 years	3 years	1 year
Texas	3 years	3 years	1 year
Utah	3 years	3 years	1 year
Vermont	3 years	3 years	1 year
Virginia	5 years	5 years	1 year
Washington	3 years	3 years	1 year
West Virginia	5 or 7 years	5 years	1 year
Wisconsin	5 years	5 years	1 year
Wyoming	5 years	5 years	1 year

Escheat Reclamation

Some states maintain online registries of unclaimed assets and dormant accounts, and register with the National Association of Unclaimed Property Administration. You can find unclaimed property on it's .

However, these efforts are ultimately subject to state law, and states can institute a statute of limitations that restricts claims after a specified period. Statutes of limitation usually help protect states that sell assets or spend funds for their own use, making these assets less recoverable.

The Bottom Line

Escheatment is the right of a government to take ownership of an account or property when there is no apparent beneficiary, heir, or other entity that has a claim to it. The account or property can be reclaimed if someone emerges with a legal claim, but reclamation is generally subject to a statute of limitations.