What is Escheatment?
Escheatment is the legal process through which financial assets deemed “abandoned” or “unclaimed” are transferred to your state government. This typically occurs when there’s been no contact or activity from the account holder over a certain period of time, as defined by state law (often three or five years). This process applies to most types of financial accounts, including checking, savings, and brokerage accounts.
How to Avoid Escheatment
River is required by law to comply with escheatment regulations. Each state and U.S. territory has their own set of laws that govern how their residents' funds are escheated.
River clients’ accounts become eligible for escheatment when the owner of the account has not made contact with their account for the length of their state’s prescribed dormancy period, which is usually three or five years. To avoid escheatment:
Log in to your River account periodically (we recommend at least once a year)
Ensure your contact information is up to date
Respond to any emails from River regarding your inactivity
What Happens Before Escheatment
As clients approach their state’s dormancy threshold, River makes multiple attempts to re-engage them and prevent escheatment. These proactive measures include:
Sending a series of reminder emails to the address on file
Prompting clients to update or verify their contact information
We strongly recommend clients respond to our email communications. Taking any qualifying action, such as logging in or replying to our emails, resets your dormancy period and ensures you retain ownership of your funds.
What Happens After Funds are Escheated
If River is unable to re-establish contact before the dormancy period expires, we are legally required to report and transfer your funds to the government of the state listed on your account. Once your funds are escheated:
You will no longer be able to access them directly through River
You must contact your state’s unclaimed property division to reclaim your funds
Each state has its own process for claiming unclaimed property