Why an untouched account can change hands
A bank or other business cannot necessarily keep money forever just because its owner stops responding. When an account or payment remains inactive for a period set by state law, the law may treat it as unclaimed property. This transfer to the state is called escheatment.
The rule is meant to keep property from disappearing into a company’s books when its owner can no longer be reached. Depending on the state and type of property, it can apply not only to dormant accounts but also to uncashed checks, forgotten deposits, or insurance payments.
The state acts as a custodian
Before turning over eligible funds, a business generally has to follow the reporting and notice requirements that apply to that property. If no owner comes forward, the business sends the property to the state’s unclaimed-property program. The state then holds it so the owner—or, in some cases, an heir—can claim it later.
That distinction matters: escheatment does not usually mean the state has permanently erased the owner’s claim. The exact waiting period, notice process, and claim rules vary by state and by the kind of property. A long-forgotten balance may therefore be out of its original account but still recoverable from the state.
