If you’ve ever wondered what happens to unclaimed money, the answer is that it eventually goes to the state in which it was abandoned. This process is called “escheatment.” Discover Bank has a special unit that deals with escheatment, and in this blog post, we’ll give you an overview of everything you need to know about this process.
What is Escheatment?
Escheatment is the legal process by which unclaimed money and property are turned over to the state in which they were abandoned. This usually happens when the owner of the money or property can’t be located after a certain period of time.
How Does Escheatment Work?
The process of escheatment usually starts with a notice that is sent to the last known address of the owner of the unclaimed money or property. If the owner does not respond to this notice, then the money or property is turned over to the state.
The state will then try to locate the owner of the money or property so that it can be returned. If the owner cannot be located, then the state will keep the money or property.
What Happens to Unclaimed Money After Escheatment?
Unclaimed money that is turned over to the state as a result of escheatment usually goes into that state’s general fund. This means that the unclaimed money is used to support various state programs and services.
In some states, however, unclaimed money may be used specifically for education-related expenses. So, if you live in one of these states, your unclaimed money could potentially be used to fund schools and student scholarships.
Conclusion:
Escheatment is a legal process by which unclaimed money and property are turned over to the state in which they were abandoned. This usually happens when the owner of the money or property can’t be located after a certain period of time. Discover Bank has a special unit that deals with escheatment, and in this blog post, we’ve given you an overview of everything you need to know about this process.
