Abandoned Property

DEFINITION of 'Abandoned Property'

Assets such as cash, stocks, bonds, mutual funds, uncashed checks, land, life insurance policies and the contents of safe deposit boxes that have been turned over to the state after several years of inactivity. Some states hold onto such property and allow the original owners and heirs to claim it indefinitely. In other states, if the property goes unclaimed for too long, it may become the state's property through a process known as escheatment. One purpose of abandoned property laws is to relieve the asset holder of liability.

BREAKING DOWN 'Abandoned Property'

In the United States, state laws determine when an asset is legally considered abandoned. In Massachusetts, for example, a bank account that has seen no activity for more than three years will be turned over to the state, but owners can file a claim to collect their abandoned property at any time. To locate abandoned property, also called unclaimed property, individuals can do a free search through state-sponsored websites or they can contact the state treasury or comptroller's office. States may also try to locate owners of unclaimed property through letters and newspaper announcements.

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RELATED FAQS
  1. How can you reclaim escheated, or unclaimed, property?

    Discover how to reclaim unclaimed or abandoned property. Read about what types of unclaimed property are taxable, and learn ... Read Answer >>
  2. How does escheatment affect a company's shareholders?

    Understand what escheated property is and how it becomes unclaimed. Learn about the ways in which escheatment can affect ... Read Answer >>
  3. How much money does California make from unclaimed property each year?

    Learn about the escheat laws in California and how unclaimed property revenues of $442 million represent the fifth-largest ... Read Answer >>
  4. How much money does Texas make from unclaimed property each year?

    Learn about unclaimed accounts in the state of Texas. Learn about the size of returned claims in Texas and the role of the ... Read Answer >>
  5. How much money does Michigan make from unclaimed property each year?

    Learn about revenue from unclaimed property in Michigan and types of escheated accounts. Read about how Michigan handles ... Read Answer >>
  6. Are stock accounts escheatable?

    Learn how stock accounts can be escheated and how the title of the account is transferred to the state which holds it until ... Read Answer >>
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