What is Escheatment? A Quick Guide

Escheatment is a vital yet often overlooked process. It involves transferring unclaimed property to the state when owners cannot be located for a few years.

State dormancy rules vary, but non-compliance comes with the risk of multi-state audits with fines, penalties, and interest.

We recommend a five-step process to ensure compliance:

1. Identify: Dormant accounts following applicable state rules.

2. Due Diligence: Formally reach out to the owners of the dormant accounts.

3. Report: Follow the state procedure to report the unclaimed property.

4. Remit: Transfer the unclaimed property to the state authorities.

5. Audit: Maintain detailed records of the entire process.

We suggest paying close attention to each state's unique rules, procedures, and timelines that can change year to year and vary by business industry (e.g., Banking, Insurance) and account type (e.g., Checking, Savings, Brokerage).

Managing all the rules, procedures, and timelines typically takes 2-4 FTEs. At Eisen, we help companies that want to save time and avoid these headaches.

At Eisen, we manage your escheatment process end-to-end, along with other types of account closures, ensuring you meet all regulatory requirements.