Why a state you barely remember is holding your money

A bank, employer, or insurer holding an account with no owner activity for a set period is required by state law to report it and hand it over to the state. The waiting period is the dormancy period; the handover is escheatment.

Nothing about it implies wrongdoing on anyone's part. It is a bookkeeping rule designed so that abandoned money ends up somewhere findable rather than staying on a company's books forever.

How long the clock runs

California's general dormancy period is three years, running from the date of the owner's last activity on the account. Three years is a common figure, but it is not a national rule — periods vary by state and by the type of property, and wages or utility deposits often run shorter than a securities account.

The clock resets on contact. Logging in, cashing a check, or answering a letter counts as activity, which is why accounts you never touch are the ones that escheat.

They have to try to find you first

Before turning property over, holders are required to attempt contact — a notice to the last known address, telling the owner the property will go to the state if they do not respond.

That single detail explains most unclaimed property. The notice went to an address you left years ago. The company did what the law asked; the letter simply never reached you.

Which state, and for how long

Property is generally reported to the state of the last address the company had on file for you. That is often not where you live now, which is why searching only your current state misses so much. Work backwards through every state you have lived in.

The good news is the end of the clock. New York says of its unclaimed funds that there is no fee or time limit to claim them. Rules vary by state, but the common case is that the money keeps waiting — the dormancy period is a deadline for the company, not for you.