Escheatment

What is Escheatment?

Escheatment is the legal process where unclaimed property or dormant accounts are transferred to the state. This occurs when an owner cannot be found after a certain period of inactivity, ensuring the assets are held for the public good until claimed.

Why It Matters

• It prevents companies from keeping funds that belong to customers who have gone silent.

• It provides a centralized way for individuals to search for and reclaim lost assets.

• It ensures that abandoned funds are used for state programs until the rightful owner appears.

• It requires businesses to maintain accurate records and attempt to contact inactive customers.