California
California escheatment is a complex but necessary part of doing business in the state. With Eisen, navigating these laws becomes simple and straightforward so you don’t have to worry about errors with compliance or reporting.
Overview of California Escheatment Laws
It’s pretty easy to get overwhelmed with California’s escheatment laws. Understanding the key legislation and property types involved is the first step toward wrapping your mind around the process.
Relevant Legislation
Administered by the State Controller’s Office, the Unclaimed Property Law outlines the rules for escheatment, including the types of property that fall under the law, the dormancy periods, and other finer points.
Types of Property Subject to Escheatment
Various types of property may be subject to escheatment in California, including:
- Bank accounts (savings and checking)
- Uncashed checks (payroll, vendor payments)
- Insurance proceeds
- Safe deposit box contents
- Securities (stocks, bonds)
- Utility deposits
California Dormancy Periods and Triggering Events
Any property falling under escheatment (that is, any property considered unclaimed) only does so after a “dormancy period.” Dormancy periods start with the last recorded owner-initiated activity.
Below is a summary of California's dormancy periods for common property types, as defined in the California Holder Handbook:
California Reporting and Remitting Unclaimed Property Process
If you want to comply with these with California laws you’ll have to follow a strict process. Fortunately, that process is spelled out clearly, including when it starts and how to adhere to timely reporting and remittance.
With that in mind, you should be always taking charge of escheatment tasks, including:
- Identifying Unclaimed Property: Stay on top of when property enters its dormancy period. This means reviewing your records to pinpoint any property that has reached its dormancy period. Better yet, you should have automated processes in place to make sure you don’t forget anything.
- Performing Due Diligence: Make sure that you’ve made every effort to reach out to the property owner through written mail by tracking down previous addresses.
- Filing the Annual Report: Submit a detailed report to the California State Controller’s Office, including owner information, property types, and values.
- Remitting the Property: Eventually, you’ll be expected to transfer the unclaimed property to the state, either electronically (for funds) or physically for items like safe deposit box contents.
- Maintaining Records: Keep all records of reported property for at least seven years, as required by law.
Easily Manage California Escheatment Compliance Using Eisen
Simplify your escheatment process with Eisen's comprehensive solutions.
Escheatment Hub
Our Escheatment Hub allows you to automate your unclaimed property reporting. It streamlines identification, due diligence, and reporting, reducing manual efforts.
Disbursement Hub
Our Disbursement Hub facilitates efficient remittance of unclaimed property, ensuring timely transfers to the state and minimizing compliance risks.
Outreach Hub
Enhance your due diligence with the Outreach Hub. Engage owners through automated communications, increasing the chances of reuniting them with their property.
Leading Financial Institutions Trust Eisen for Multi-State Escheatment Compliance
Join the ranks of industry leaders who rely on Eisen for seamless escheatment management across multiple states.
"Eisen transformed our compliance process, saving us time and resources."
— Jane Smith, CFO of ABC Bank
Automate the Escheatment Process with Eisen
Take the complexity out of escheatment. Let Eisen's automated solutions handle the heavy lifting so you can focus on your core business.
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Financial institutions use Eisen's escheatment, disbursement, and outreach tools to streamline account offboarding while automating manual work and reducing risk of non-compliance.
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