Escheat, Escheat Laws
Definition:
Escheat refers to the principle that unclaimed property reverts to the state if the owner does not claim it and no heirs step forward with a claim on the property. To "escheat" meaans "to surrender." State laws govern unclaimed property, and define when it must be returned (surrendered) to the state, and how the owner of a property must be notified of the right to claim property.
The concept of escheat goes back to medieval times when the king or lord of the manor took property unclaimed by the peasants working for him.
One common instance where business owners may be involved in unclaimed property is paychecks that have not been cashed. Each U.S. state has regulations designating when and how an employee must be notified of the right to claim a paycheck, how long records on unclaimed paychecks must be kept, and minimums for unclaimed paychecks.
Escheat refers to the principle that unclaimed property reverts to the state if the owner does not claim it and no heirs step forward with a claim on the property. To "escheat" meaans "to surrender." State laws govern unclaimed property, and define when it must be returned (surrendered) to the state, and how the owner of a property must be notified of the right to claim property.
The concept of escheat goes back to medieval times when the king or lord of the manor took property unclaimed by the peasants working for him.
One common instance where business owners may be involved in unclaimed property is paychecks that have not been cashed. Each U.S. state has regulations designating when and how an employee must be notified of the right to claim a paycheck, how long records on unclaimed paychecks must be kept, and minimums for unclaimed paychecks.
