Why do states have Unclaimed Property laws?
A.2 Unclaimed property laws have evolved from English Common Law, whereby all abandoned property reverted to the Crown of England. The United States established unclaimed property laws to protect society in regards to property rights. Without these laws, holders of unclaimed property would have no incentive to return property to the rightful owner. These laws require holders to attempt to locate the rightful owner within a certain period of time (“dormancy period”). If the holder is not successful in locating the rightful owner, the law requires them to turn the property over to the state, which would hold the property until the rightful owner is found. The intent of the law is to reunite the true holder or owner of unclaimed property with their rightful claim.
