What is the escheat period for unclaimed redemption money?

• A. 3 years
• B. 5 years
• C. 7 years
• D. 10 years

Answer: (B)

Escheat period is the time a payer or holder must wait while funds are unclaimed before they belong to the state. For unclaimed redemption money in New Jersey, that dormancy period is five years. If the money remains unclaimed for five years after it became due and payable, the funds escheat to the state. The clock starts when the right to payment arises and, through due diligence, the owner hasn’t claimed it. Once escheated, the money is held by the state’s unclaimed property program, but the owner can still claim it later with proper proof of ownership. Shorter or longer timeframes don’t apply to this situation under the current rules.