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 and 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, Share Data explains what escheatment is, why it happens, and the practical steps executors, solicitors, and beneficiaries can take to help protect valuable estate assets from being transferred to US state custody.

Watch our short explainer on escheatment below, or view it directly on YouTube.

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.

Federal Transfer Certificate Delays and Escheatment Risk

Depending on the estate’s circumstances, an IRS Federal Transfer Certificate may be required before certain US assets can be transferred or released.
For estates of non-US citizens who were not domiciled in the United States, the requirements depend on factors such as the nature and value of US-situated assets. Form 706-NA may be required in some cases, while a different transfer certificate application process may apply where no estate tax return is required.

Obtaining a Federal Transfer Certificate can take a considerable amount of time. During this period, inactivity on an account may increase the risk of the assets being treated as dormant and transferred to a state’s unclaimed property programme.

If assets have already escheated, recovery will normally require a separate claim supported by detailed evidence of ownership and 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.

Need help with an escheatment case?

Tell us briefly about the assets and our team will contact you to discuss how we may be able to assist.

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