> ## Documentation Index
> Fetch the complete documentation index at: https://dso.getlemma.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Unclaimed property (escheatment) by state
> How dormancy periods and due diligence requirements work, which state gets the property, where to find each state's rule, and the reporting cycle.
Uncashed patient refund checks, uncashed payroll, and aged credit balances can become **unclaimed property** owed to a state. Every state has an unclaimed property law that can apply to dental practices, and audits may look back many years.
This page explains the general framework, common requirements, and how to find each state's current rule. It does not include a 50-state table of dormancy periods because those periods vary by state and property type and change over time. Several states have also adopted modified versions of the Revised Uniform Unclaimed Property Act. Using an outdated dormancy period can lead to premature remittance or a late-filing penalty. Each state's unclaimed property administrator is the primary source, and [unclaimed.org](https://unclaimed.org/) provides an index.
## Which state gets it
Governed by priority rules derived from US Supreme Court decisions on interstate escheat:1
1. The state of the owner's last known address in your records
2. If there is no address, or that state has no applicable law, the holder's state of incorporation
Consequences for a DSO-PC group:
* Property is reported to the patient's state, not necessarily yours
* A multi-state group reports to multiple states
* Address hygiene directly determines jurisdiction: a missing address defaults the property to your entity's state of incorporation
* Each PC is a separate holder with its own reporting obligation
## What the periods look like
The ranges below are directional. Confirm the rule for each applicable state and property type.
| Property type | Typical dormancy range |
| ------------------------------------------------------------ | ------------------------------------------------------------------- |
| Uncashed payroll / wages | Often shorter than general property, commonly 1 year in many states |
| General intangible property (refund checks, credit balances) | Commonly 3 to 5 years |
| Accounts payable / vendor credits | Similar to general property |
Payroll dormancy periods are often shorter than periods for other property types. An uncashed final paycheck may therefore become reportable before a patient refund check issued in the same month.
## What is consistent across states
Although specific periods vary, the compliance process is broadly similar across states.
### Due diligence
Most states require a written attempt to contact the owner before reporting, typically:
* Sent to the last known address
* Within a specified window before the reporting deadline
* Often with prescribed content
* Frequently subject to a dollar threshold below which it isn't required
Retain a copy and proof of mailing because the letter forms part of the compliance record.
### The reporting cycle
Most states use a fall reporting cycle with an annual deadline, filed electronically in a standard format with the property remitted alongside. A minority of states use a different cycle.
File per holder entity, per state. Each PC files its own.
### Record retention
States generally require retention for a period after reporting. An owner who later comes forward is directed to the state, but you may need to evidence what you reported.
## The pipeline
```mermaid theme={null}
graph LR
A[Check issued or credit balance created] --> B{Resolved?}
B -->|Yes| C[Done]
B -->|No, goes stale| D[Due diligence letter]
D --> E{Response?}
E -->|Yes| F[Reissue and resolve]
E -->|No| G[Dormancy period runs]
G --> H[Report and remit to the state]
H --> I[Retain records]
```
## The uncashed-check ledger
Maintain one ledger for all outstanding checks and other tracked property.
Record for every check: number, amount, payee, payee's last known address, issue date, entity, and clear date.
Unclaimed-property reviews may cover several years and may use estimation methods when records are incomplete. Retaining complete item-level records makes it easier to support the amounts and disposition reported for each entity.
Start the ledger before issuing the first check. Reconstructing it later from bank statements across several entities is slower and may leave gaps.
Reconcile monthly. Anything outstanding past the stale date on your check stock moves to the due diligence queue.
## Aged credit balances count
A patient credit balance can become unclaimed property even if the practice never issued a check. Common sources include estimated patient portions collected at the visit, orthodontic payments made before treatment, and adjudication that differs from the estimate because of downgrades or exhausted annual maximums. Leaving the balance on the account does not eliminate the liability. Review the credit-balance report as part of both refund and escheatment compliance. See [Resolve credit balances](/guides/payments/resolve-credit-balances).
## Voluntary disclosure
If diligence or a first-time review uncovers years of unreported property, check whether the state offers a voluntary disclosure agreement program. These programs may provide penalty or interest relief when the holder reports and remits the backlog under the program's terms.
If a review identifies a backlog, compare the state's voluntary-disclosure process with the ordinary reporting and enforcement rules before an audit begins.
## How to find your state's rule
The National Association of Unclaimed Property Administrators indexes every state's administrator and reporting requirements.
Most states publish one, with dormancy periods by property type, due diligence requirements, thresholds, and the reporting deadline.
Payroll and general property separately.
States amend these.
## Multi-entity reporting
| Item | Implication |
| ------------------------------------------ | -------------------------------- |
| Each PC is a separate holder | Separate report per entity |
| Reporting follows the owner's state | One PC may report to many states |
| Dormancy periods differ per state per type | Track the matrix |
| Deadlines are per state | Calendar each |
| A ten-PC group | Potentially dozens of filings |
These separate reporting obligations add administrative work as the number of entities and states grows, and missing filings may surface during diligence.
## Prevention
A prompt refund and follow-up process can keep the volume of escheatable property small:
1. **Refund promptly**, weekly credit balance review, resolution within 30 days
2. **Refund to the original payment method** where possible; card refunds don't go stale
3. **Verify addresses** before mailing
4. **Follow up on uncashed checks** at 30 and 60 days, before the stale date
5. **Collect and maintain good contact information** at registration
## Sources
1. Interstate priority rules derive from *Texas v. New Jersey*, 379 U.S. 674 (1965), and subsequent decisions. State administrators indexed at [unclaimed.org](https://unclaimed.org/). Many states have adopted versions of the Uniform Law Commission's Revised Uniform Unclaimed Property Act (2016) with state-specific modifications.