How Unclaimed Property Really Works: From Dormancy to State Custody

Unclaimed property can sound mysterious, but the basic idea is simple: it is money or assets that belong to you (or your family, or your business) that a company or institution could not successfully deliver and eventually turned over to the state.

This guide walks through how unclaimed property works step by step—from the first signs of inactivity (dormancy), to company reporting, to state custody and how people usually claim it back through official channels.

HowToGetAssistance.org is an independent information site, not a government agency, not a financial institution, and not an application or claims portal. This article can help you understand the process so you can work with your state’s official unclaimed property program more confidently.

What Is Unclaimed Property? (Plain-English Overview)

Unclaimed property usually means financial assets that have been inactive or undeliverable for a set period of time. It does not usually involve real estate or vehicles.

Common examples include:

• Bank accounts that have been abandoned
• Uncashed checks, including payroll or refunds
• Security deposits (utilities, rentals) never claimed back
• Insurance benefits or payouts never received
• Investment accounts or dividends with no contact
• Gift cards or store credits in some states
• Safe deposit box contents when the owner cannot be located

The general pattern is:

1. The company or institution holds your money or asset.
2. There is no activity or contact for a certain period (dormancy).
3. The company must try to reach you.
4. If they cannot, they are usually required by law to turn the property over to the state where it is protected for you.
5. You (or your heirs) can later file a claim through the state’s official unclaimed property office to recover it.

Key Concept #1: What “Dormancy” Means

Dormancy is the period of time during which an account or asset has no apparent owner activity. Once that period ends, the asset may be considered unclaimed.

What counts as “activity”?

In many states and for many types of property, activity can include:

• Making a deposit or withdrawal from an account
• Cashing a check
• Updating your address with the company
• Logging into an online account (for some institutions)
• Contacting the company in writing or by phone, if documented
• For investments, reinvesting dividends or giving other instructions

Simple things like interest being added by the bank usually do not count as owner activity.

Typical dormancy periods

Dormancy periods vary by state and type of property, but common examples include:

• 1 year – certain types of wages or payroll checks
• 3 years – many bank accounts, brokerage accounts, or refunds
• 5 years or more – some insurance or retirement-related property

Your state’s official unclaimed property website or your financial institution’s disclosures usually provide specific dormancy periods for each type of account.

Key Concept #2: Reporting and “Escheatment” to the State

Once an account is dormant, the company or institution holding the asset is usually required to follow a reporting process. This is sometimes called escheatment.

Step 1: Due diligence – attempts to contact you

Before turning your property over to the state, holders typically must make reasonable efforts to reach you, often called due diligence. This might include:

• Mailing a notice letter to your last known address
• Sending email notices, if they have your email
• Including warnings on account statements
• In some cases, making a phone call

If they cannot confirm your address or get a response, and the dormancy period has passed, they usually move to the next step.

Step 2: Reporting unclaimed property to the state

The company (called the holder) then:

1. Prepares a report listing:
   • Owner’s name
   • Last known address
   • Type of property (e.g., checking account, dividend, refund)
   • Amount or description
2. Submits the report and transfers the funds (or property) to the state unclaimed property office of the relevant state.

The state is usually determined by:

• The owner’s last known address, or
• If that is unknown, sometimes the state where the company is based, depending on applicable laws.

Step 3: State takes “custodial” possession

Most states act as a custodian, meaning:

• The state does not become the true owner of your property in a personal sense.
• Instead, the state holds it on your behalf until you or your heirs file a valid claim.
• In many states, there is no time limit on when you can claim, although this can vary by property type.

Key Concept #3: State Custody and Protection of Funds

Once your property reaches the state:

• Cash amounts are typically deposited in a state-held fund.
• Securities (like stocks) may be liquidated and held as cash, depending on state rules.
• Safe deposit box contents may be stored for a set period, and after a time, non-sensitive property may be auctioned, with proceeds held for the owner.

States often use some of the unclaimed property fund for public purposes, but they keep records so that rightful owners can still claim their money later.

Even if the original form of the property changes (for example, stock is sold and turned into cash), the state usually keeps a monetary value on record that you can claim.

Typical Timeline: From Dormant Account to Unclaimed Property

Below is a simplified example of how the process might look for a dormant bank account. Actual timelines vary by state and property type.

*Timeframes are approximate and vary by state and asset type. Always check your state unclaimed property office for exact rules.

How to Find Out If You Have Unclaimed Property

HowToGetAssistance.org does not host unclaimed property databases or process claims. To check for unclaimed property, people typically:

1. Identify the correct official office.

   • Search online for phrases like “[Your State] unclaimed property” or “[Your State] treasurer unclaimed funds”.
   • Look for a state government website (.gov) or your state’s treasurer or comptroller.

2. Use the official search tool.
   Most state unclaimed property programs provide a free online search where you can enter:

   • Your first and last name
   • Any previous names (such as maiden names)
   • Your business name, if applicable
   • Sometimes your city or ZIP code to narrow results

3. Search in multiple states if needed.
   If you have ever:

   • Lived in another state
   • Held a job there
   • Done business across state lines
   • Attended school out of state

   …you may want to check each of those states’ official unclaimed property websites as well.

Who Typically Can Claim Unclaimed Property?

The person or entity allowed to claim depends on who the original owner was and whether they are still living.

Common situations:

• Original owner (individual)
  Usually, you can claim your own funds with proof of identity and address.

• Heir or estate representative
  If the owner has died, the following may typically claim:

  • Executor or administrator of the estate
  • Heirs (spouse, children, or other relatives) with proper documentation
  • Someone appointed by a probate court

• Business owner or officer
  Business accounts, refunds, or credits may be claimed by:

  • A business owner
  • An authorized officer or representative with documented authority

Each state sets its own detailed rules. The official unclaimed property website for your state usually lists who can claim and what documents they need under different scenarios.

Documents Commonly Needed to Claim Unclaimed Property

Requirements differ by state and by type of claim, but people are often asked for:

For individuals claiming their own property

• Government-issued photo ID

  • Driver’s license
  • State ID card
  • Passport

• Proof of current address

  • Utility bill
  • Lease agreement
  • Bank statement

• Proof of connection to the reported address or account (especially if you moved)

  • Old utility bills or lease agreements
  • Tax forms (W-2, 1099)
  • Bank statements or old checks

• Social Security number or tax ID, often requested for verification (exact handling varies by state).

For heirs or estate claims

• Death certificate of the original owner
• Proof of relationship, such as:
  • Birth certificate
  • Marriage certificate
• Legal authority documents:
  • Letters of administration or testamentary
  • Court order appointing executor or administrator
  • Small estate affidavit (if allowed in your state)

For business claims

• Business registration documents
• Proof of authority to act for the business (e.g., corporate resolution, letter on company letterhead)
• Tax ID number (EIN)
• Sometimes supporting records showing the business once operated at the address connected to the property.

Your state unclaimed property office typically provides detailed instructions on which forms and documents are needed for each claim type.

How to File a Claim Through Official Channels

While exact steps differ by state, the process often looks like this:

1. Search the official unclaimed property database.

   • Locate any records that match your name, address, or business.

2. Select the property you want to claim.

   • Many state systems let you “add” items to a claim cart before starting the form.

3. Fill out the state’s official claim form.
   This might be:

   • An online form submitted through the state website
   • A paper form you print, complete, and mail

   You may need to provide:

   • Name and contact information
   • Social Security number or tax ID
   • Details confirming your past address or affiliation with the property

4. Attach required documents.
   Depending on the state, you may:

   • Upload scanned copies
   • Mail photocopies to the specified address
   • In rare cases, appear in person at a designated office

5. Submit the claim to the state’s official unclaimed property office.

   • Follow the instructions exactly as listed on your state’s website or form.

6. Track your claim status.

   • Many states offer an online status tool.
   • Others may provide updates by mail or phone through a dedicated line.

If you are unsure about any step, you can usually contact your state unclaimed property office’s customer service number for clarification.

What Happens After You File a Claim?

Once your claim is submitted:

1. Review and verification
   State staff usually:

   • Check your documents for completeness
   • Verify your identity
   • Confirm your connection to the specific property

2. Requests for additional information
   If something is missing or unclear, they may:

   • Send a letter or email
   • Ask for additional documents or a corrected form

3. Approval or denial

   • If approved, the state typically issues:
     • A check mailed to you, or
     • In some cases, a direct deposit if that is offered
   • If denied, they usually send a reason and sometimes instructions about next steps or appeals.

Typical processing times

Processing times vary, but claims often take:

• A few weeks to several months, depending on:
  • Claim complexity
  • Volume of claims
  • Whether documents were complete and clear

Many states post expected timelines on their official unclaimed property site.

Common Reasons Claims Are Delayed or Denied

People often experience delays or denials for reasons such as:

• Missing documents

  • No proof of identity
  • No proof of address or connection to the property

• Name changes not explained

  • Marriage, divorce, or legal name change not supported with documentation

• Incorrect or incomplete forms

  • Missing signatures
  • Sections left blank that should be completed

• Unclear relationship to the original owner

  • For heirs: lack of legal authority or relationship proof

• Mismatched information

  • Spellings, dates of birth, or addresses that do not match state records

To avoid problems, review the instructions from your state’s unclaimed property office carefully and verify your forms are complete before sending.

If You Disagree With a Decision: Reviews and Appeals

If your claim is denied and you believe you are entitled to the property:

1. Review the denial letter carefully.
   It often lists:

   • The reason for denial
   • Whether you may submit additional documents
   • Any appeal or review rights

2. Submit additional evidence if allowed.

   • Provide clearer or more complete documentation showing your identity or your tie to the property.

3. Follow your state’s formal appeal process, if available.

   • Some states allow a written appeal or request for reconsideration.
   • Others may have an administrative hearing process.

The exact steps are set by state law, so the most reliable source is your state’s official unclaimed property office or treasury department.

If You Do Not Qualify or Cannot Prove Ownership

Sometimes, even if you believe money is yours, you may not be able to provide the documentation the state requires. In that case:

• Contact the unclaimed property office directly.
  Ask whether there are alternative proofs they will accept (for example, older documents, affidavits, or other records).

• Check for other assistance sources.
  While it is separate from unclaimed property, people who are struggling financially sometimes explore:

  • Local social services through county or city human services departments
  • Help lines like 211, which can connect you with assistance programs in your area
  • Housing, utility, or food assistance programs through state benefit agencies

Unclaimed property itself is not a need-based assistance program—it is simply money or assets that already belong to you. But if you are counting on these funds and cannot access them, those other resources may be worth exploring.

How to Avoid Unclaimed Property in the Future

You can reduce the chances of your money being turned over to the state by:

• Keeping contact information current

  • Update your address, phone, and email with banks, employers, insurers, and utility companies whenever you move or change contact details.

• Checking small accounts periodically

  • Log in or make a small transaction on rarely-used accounts.

• Cashing or depositing checks promptly

  • Payroll checks, refunds, and class-action settlement checks can become unclaimed if ignored.

• Consolidating old accounts

  • Close or transfer old bank or investment accounts you no longer actively use.

• Keeping a simple file or list

  • Maintain a list of accounts, insurance policies, and safe deposit boxes, and let a trusted family member know where it is kept.

Scam-Avoidance Tips: Make Sure You’re on an Official Channel

Because unclaimed property involves money, it sometimes attracts scams and misleading “finder” services. To protect yourself:

• Verify you are on an official website.

  • Look for a .gov address and clear references to your state treasurer, comptroller, or unclaimed property division.

• Be cautious about unsolicited calls or emails.

  • If someone contacts you claiming you have unclaimed property and asks for upfront fees, bank information, or Social Security numbers by email or text, verify their identity by independently looking up your state office’s official contact information.

• Know that many state searches and basic claims are free.

  • Official state unclaimed property searches are typically free of charge.
  • Some private “locator” services exist and may charge fees. Before agreeing, consider whether you can file directly with the state at no cost.

• Never send sensitive documents to unknown addresses.

  • If you need to provide ID or other personal records, confirm the mailing address or upload portal directly from your state’s official site or hotline.

If anything feels uncertain, call your state unclaimed property office using a phone number listed on an official government website and ask for guidance before proceeding.

Understanding how unclaimed property works—from dormancy, to reporting, to state custody—can help you take the right next step through your state’s official unclaimed property office. With the right documents and accurate information, many people are able to reconnect with funds they did not realize were waiting for them.