What is an escheat?

An escheat is a legal term that is used in the state of Washington to describe a process in which unclaimed or abandoned property is turned over to the state. It is a common law concept that allows states to take ownership of assets that are not being utilized by their owners for an extended period of time. An escheat generally applies to assets such as real estate, securities, and unclaimed bank accounts. The owner of the property must fail to take action or actively use the asset for a minimum period of time as defined by law. This period is typically three years. If the owner does not take action on the asset, then the state will step in to reclaim it. In the state of Washington, the Department of Revenue is tasked with administering the escheat process. The state will attempt to find the rightful owner of any assets reported to them as abandoned. If the owner cannot be located or defended, then the state will take ownership. Escheat does not necessarily mean the asset is taken away from the owner forever. If the rightful owner is found, then they may reclaim the asset under certain conditions. However, the owner may also be subject to fines or penalties for failing to take action in the allotted time frame.

Related FAQs

What are the necessary steps for a real estate closing?
What is a covenant?
What is a lease?
What is a court ordered partition?
What is adverse possession?
What is a deed of confirmation?
What is an alienation clause?
What rights do tenants have?
What is a mortgage?
What is a deed of trust?

What is an escheat?

Related FAQs

Related Blog Posts