Word of the Month for February 2018: Escheat

Seems money is tight these days.  Lots of people looking for ways to make a little extra and government looking to take more than its share.  Such is the state of affairs these days and the topic for today's blog.

So, this couple came into the law library the other day. Seems couple had had a nest egg of a few thousand dollars stashed in an account they had forgotten they had.  Seems they got a letter from the bank a while back saying that because the account was "inactive;" that the monies in their account had been escheated to the state.

Wait - what?!?  What in blazes does escheat mean?!?  Well, according to Black's Law Dictionary, ESCHEAT is:

1. The reversion of land ownership back to the lord when the immediate tenant dies without heirs.  2. Reversion of property to the state upon the death of an owner who has neither a will nor any legal heirs.

While that doesn't make all that much sense in the modern world, let me explain to you what it all means in today-speak. Because couple had neither added to (or withdrawn from) the account for a number of years, that the bank had closed the account and sent the monies to the state.  According to California Code of Civil Procedure Section 1300(c):

"Escheat," unless specifically qualified, means the vesting in the state of title to property the whereabouts of whose owner is unkown or whose owner is unknown or which a known owner has refused to accept, whether by judicial determination or by operation of law,...When used in reference to the law of another state, "escheat" includes the transfer to the state of the right to the custody of  such property.

So, because couple had not done anything in a while (20 year or so; see CCP 1601) to claim an interest in the account, the bank did what banks do and sent the money to the state.

Couple is just a little incensed, what with their money now in the hands of one other than themselves, and are looking for retribution.  The thing is that many legal things can be resolved without flying off the handle and filing lawsuits.  I mean, the bank was just doing it's job.  Anyway, in an effort to ward off WW3, I suggested couple take a look at:

• California Forms of Pleading and Practice (Lexis; Vol 21, Chp. 252)
• American Jurisprudence Pleading and Practice Forms (Vol. 9A, Escheat)

and get their money back.  I mean, as far as legal things go, getting money back that has escheated to the state is relatively painless and easy.  Really, it is.

So, off went couple and I chalked up another successful research project.  Yep, when you need help of a legal research nature, your local county law Librarian is the person to see. We've got the skills to help put things in perspective.