What Is Escheatment?

Did you ever forget about an old savings account and wondered where that money went?

Millions of people have forgotten accounts or didn’t realize they had walked away from some fund of money they were entitled to.

When money lies dormant in a deposit account or appears to be abandoned, the bank or other organizations with which the money was deposited aren’t necessarily allowed to just keep that money for their own use. After a period of time, they’re required to turn it over to the state. This is called escheatment. Once it's turned over to the state for safekeeping, the owner of the money can still access it by making a proper claim for it.

What Funds Are Subject to Escheat Rules?

It’s not only money in deposit accounts that will be escheated. If you forget to cash a check, that money can be escheated. Likewise, if you don’t claim your wages, that money can also be escheated.

Here are some of the types of property that can go unclaimed and will be escheated: 

• Checking accounts
• Savings accounts
• Payroll checks and commission checks
• Vendor credits
• Utility deposits
• Stocks, bonds, dividends, mutual fund, and brokerage accounts
• CDs
• IRAs
• Life insurance proceeds
• Annuity contracts
• Oil and gas or other mineral royalties
• Tax refunds*
• Pension benefits

*If it's a federal tax refund, it won't be escheated to the state. Be mindful also that you only have three years to claim a federal tax refund.

When Are the Funds Turned Over to the State?

The amount of time that passes before the account will be turned over depends on the state. Each state has different periods of time and other requirements for escheatment. The amount of time also depends on the type of money or account that’s being escheated. Bank accounts, checks, and wages may be subject to different periods.

This chart shows the state and the amount of time after which the bank or another payor will turn the money over to the state.

State	Bank Account	Checks/Drafts	Wages/Salaries
Alabama	3 years*	1 year	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
D.C.	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	none	1 year
Kentucky	3 years	3 years	3 years
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	5 years	5 years	5 years
Missouri	5 years	5 years	5 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	3 years*
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

*Check out state law for additional requirements.

Possible Fees Charged

Banks often charge fees before they turn the money over to the state. Some charge monthly service fees, like you’re probably familiar with on your checking account, although many banks charge a smaller fee once they determine that the account is dormant or inactive and the balance is small. However, some charge a special escheat fee before the money goes to the state.

How to Claim Escheated Funds

Start by searching on a public database like Unclaimed.org or MissingMoney.com. These sites can link you to the unclaimed-funds sites for each state, and from there you can search for funds that you might be able to claim. Or, run a search for "unclaimed property in [your state]." If your property is turned over to the state, the state will have a claims process you must undertake to verify that you’re entitled to the money before it will be released to you. Some require special forms, some allow you to claim online, some require special documents or identification.