Escheated Assets

Efficient Prevention and Recovery of US Assets at Risk of Escheatment

Escheated Assets are a significant concern when a UK estate contains US-based holdings such as shares, bank accounts, or uncashed dividend payments. Without timely intervention, these dormant assets can be claimed by a US state — making recovery time-consuming, complex, and costly.

At Share Data, we work with personal representatives, solicitors, and private individuals to prevent the loss of estate value through escheatment, manage US asset transfers, and recover property that has already escheated.

How to Prevent Escheatment in US Assets

Understanding how escheatment works — and how to prevent it — is vital when dealing with UK estates that hold US-based assets. In this short presentation, our specialists at Share Data explain what escheatment is, why it happens, and the practical steps you can take to protect valuable estate assets from being lost to US states.

To learn more, watch our short presentation on escheatment in the Articles section where we explain the process in detail and share practical steps to protect estate assets.

Understanding Escheatment in the United States

Escheatment is the legal process by which unclaimed or dormant property is transferred to the custody of a US state. Each state has its own escheatment laws, but in general:

Assets may escheat after 3–5 years of inactivity

Dormant property can include bank accounts, uncashed checks, insurance policies, and US shareholdings

Dormancy is triggered in the state where the financial institution or transfer agent is incorporated

For estates in probate, inactivity is common — especially when share registrars or transfer agents are unaware of the death and no activity is recorded on the account.

The Federal Transfer Certificate (FTC) Delay Problem

Under the US-UK Tax Treaty, a Federal Transfer Certificate (FTC) from the Internal Revenue Service is required before US assets can be released.

This process can take up to two years

During this time, transfer agents may classify the account as dormant and begin the escheatment process

Once assets have escheated, recovery requires state-specific legal procedures and extensive proof of entitlement

Proactive Steps to Prevent Escheatment

Monitor Correspondence from US Transfer Agents

Transfer agents must issue warning notices before initiating escheatment. These are often sent to the shareholder’s last registered address, so ensuring mail redirection is critical.

Manage Dividend Payments

Uncashed dividends are a common trigger for dormancy. Even if UK banks are reluctant to process foreign currency cheques, depositing them where possible can prevent escheatment.

Request an Escheatment Block

Some transfer agents can place a temporary hold (often 180 days) on the escheatment process. While this will not cover the entire FTC process, it can provide valuable time.

Engage Specialist Support from Share Data

We liaise directly with US transfer agents, track account activity, manage dividend payments, and respond quickly to warning notices. Our expertise reduces the risk of assets being lost.

Involve US Probate Lawyers Where Necessary

State-by-state escheatment laws differ. Engaging US-based probate counsel can ensure compliance and speed up asset transfers.

Recovering Escheated Assets – and How We Can Help

If assets have already escheated to a US state, recovery is possible but often complex. It typically requires:

Filing a claim with the relevant state unclaimed property office

Providing detailed proof of entitlement, such as resealed UK probate grants

Navigating state-specific legal and administrative processes

At Share Data, we work with US counsel to manage the entire process — from prevention through to recovery. Our service includes monitoring US shareholdings for dormancy risk, handling correspondence and dividend payments, liaising with US transfer agents, and reclaiming escheated property.

We ensure compliance with UK and US requirements, protect estate value, and provide peace of mind to personal representatives and beneficiaries.

Related Services