Every year on February 1, California observes National Unclaimed Property Day, a reminder of a quiet but widespread financial issue affecting millions of residents across the state. Billions of dollars in unclaimed assets are currently held by the California State Controller’s Office, waiting to be reunited with their rightful owners.
For many Californians, this comes as a surprise. Unclaimed property isn’t rare, and it doesn’t only affect people who are disorganized or inattentive. It often happens to responsible individuals and families navigating career changes, relocations, and increasingly complex financial lives.
Understanding how unclaimed property arises—and how to prevent it—can help ensure your assets remain with the people you intend to benefit.
What Unclaimed Property Means Under California Law
In California, unclaimed property refers to financial assets that have had no owner activity or contact for a set period of time, typically between three and five years, depending on the asset type. When a bank, employer, insurance company, or investment firm cannot reach the owner after required attempts, the asset must be transferred to the state through a process called escheatment.
The State of California does not permanently take ownership of this property. Instead, it acts as a custodian until the owner or rightful heirs submit a valid claim. However, unless someone knows to look for the asset, it can remain with the state indefinitely.
Common examples of unclaimed property in California include forgotten bank or credit union accounts, uncashed payroll or refund checks, old stock dividends, life insurance proceeds, and the contents of abandoned safe-deposit boxes.
Why Unclaimed Property Is So Common in California
California’s mobile population plays a significant role in why so much property becomes unclaimed. Residents frequently move for work, housing changes, or family reasons—often multiple times over a lifetime. Each move creates opportunities for mail to go undelivered and accounts to become disconnected from their owners.
Career transitions can also leave behind old retirement accounts or final paychecks. Name changes due to marriage or divorce may result in accounts being listed under a prior name, making them harder to trace. When a loved one passes away, families often don’t know about every account or policy the person owned, particularly if there was no organized record.
Across all states, unclaimed property totals exceed $70 billion, and California alone holds tens of billions of dollars in unclaimed assets. While the state returns billions to owners each year, new property becomes unclaimed at an even faster rate.
Why February 1 Matters for Californians
National Unclaimed Property Day exists to encourage Californians to take three simple steps: check, claim, and prevent.
February 1 serves as an early-year reminder to search for forgotten assets before tax season begins and to take proactive steps to prevent future losses. The California State Controller’s Office regularly promotes this observance to raise awareness and help residents reclaim what already belongs to them.
What California Residents Can Do Right Now
The first step is to search California’s unclaimed property database through the State Controller’s Office. The search is free and requires only your name. If you’ve lived or worked in other states, it’s important to search those states as well, since there is no single national database.
When searching, try variations of your name, including maiden names and different initials. If you find property, the claims process may require documentation and patience, but there is no fee to recover what is yours.
More importantly, prevention matters. Proper estate planning helps ensure your assets never become unclaimed. Creating and maintaining a comprehensive list of your bank accounts, investments, retirement plans, insurance policies, and beneficiary designations makes a meaningful difference—especially in California, where property values and account balances can be significant.
Making sure a trusted person knows where this information is kept and updating your plan as your life changes are critical steps in protecting your legacy.
The Bigger Picture for California Families
In a state as dynamic as California, assets don’t become unclaimed because people don’t care. They become unclaimed because life changes quickly, and financial systems don’t communicate with one another.
National Unclaimed Property Day reminds us that if no one knows what you own or how to access it, even substantial assets can disappear into government custody. The real goal is not just recovery—it’s prevention.
How Tyre Law Group Helps California Families Protect Their Assets
At Tyre Law Group PC, we help California families create Life & Legacy Plans designed to keep assets out of state custody and in the hands of loved ones. Our approach focuses on clarity, organization, and ongoing guidance, so your plan continues to work as your life evolves.
This February, don’t just search for unclaimed property. Take the step that truly protects your family’s future.