Deposits that have become dormant for a period of how many years may be escheated in favor of the government?

Deposits that have become dormant for a period of how many years may be escheated in favor of the government?

• A. 5
• B. 10
• C. 15
• D. 20

Answer: (B)

Unclaimed deposits are turned over to the government after a defined period of dormancy, a process known as escheatment. In this context, that dormancy period is ten years. Once ten years pass without any owner activity or contact, the financial institution may escheat the funds to the government, while still typically allowing the rightful owner to claim them later under established procedures. Why ten years fits: it provides a lengthy enough window for owners to come forward with proof of ownership, yet prevents funds from remaining indefinitely in limbo. A shorter period, like five years, would rush escheatment and risk owners losing their money too early. Longer periods, such as fifteen or twenty years, would delay government custody unnecessarily and are not the standard given in this scenario.

Unclaimed deposits are turned over to the government after a defined period of dormancy, a process known as escheatment. In this context, that dormancy period is ten years. Once ten years pass without any owner activity or contact, the financial institution may escheat the funds to the government, while still typically allowing the rightful owner to claim them later under established procedures.

Why ten years fits: it provides a lengthy enough window for owners to come forward with proof of ownership, yet prevents funds from remaining indefinitely in limbo. A shorter period, like five years, would rush escheatment and risk owners losing their money too early. Longer periods, such as fifteen or twenty years, would delay government custody unnecessarily and are not the standard given in this scenario.