Texas Unclaimed Property Statute: Reporting and Claims Process

Texas unclaimed property law, codified in Title 6 of the Texas Property Code, requires banks, businesses, insurers, and government agencies to turn dormant financial assets over to the Texas Comptroller of Public Accounts once the rightful owner has been out of contact for a set period. Owners can reclaim that property at any time, for free, through the Comptroller’s site at ClaimItTexas.gov. The state has returned more than $5 billion so far, and no deadline bars a claim.¹

What Counts as Unclaimed Property

The statute reaches almost any financial asset a third party holds for someone else. That includes dormant bank accounts, uncashed paychecks, utility deposits, insurance proceeds, stocks and dividends, mineral proceeds, unclaimed restitution payments, and the contents of safe deposit boxes.²¹

Safe deposit boxes work a little differently. When a bank determines a box has been abandoned, it sends the contents to the Comptroller. Most items are held for about a year before being auctioned through GovDeals; significant papers are kept for five years. File a claim before the auction and you get the actual contents. If the items have already been sold, the sale proceeds stay yours and remain claimable indefinitely.³

How Long Before Property Is Considered Abandoned

The dormancy period is how long an asset must sit untouched before it counts as abandoned. Texas uses different periods by property type, ranging from one year to fifteen.⁴ The common ones:

One year for wages, payroll checks, and utility deposits.
Three years for securities such as stocks, bonds, and mutual funds, plus most property types not listed elsewhere.
Five years for most bank and deposit accounts.⁵

The clock runs from the owner’s last deliberate contact or the date a payment came due. Withdrawals, deposits, written correspondence, and address changes all reset it. Passive activity like interest posting or fees being taken out does not. For securities, cashing a dividend check or voting in a shareholder meeting restarts the clock.

The pivot date each year is March 1. Property that has passed its dormancy period and is still with the holder on March 1 must be reported to the Comptroller by the following July 1.⁵

How to Search for and Claim Your Property

Start at ClaimItTexas.gov. The Comptroller runs a free search tool: enter your name, and the database shows anything held in your name.⁶ Businesses can search by company name or tax ID.¹

If you find a match, file a claim online and upload supporting documents. The Comptroller typically wants a government-issued photo ID, proof of your current address, and financial records tying you to the specific asset. Heirs claiming on behalf of an estate submit a will, probate order, or other document showing their right to the property. The office reviews the file and may ask for more evidence if ownership is unclear. Processing generally takes several weeks. Approved claims pay out by check or direct deposit, and tangible items from safe deposit boxes may need in-person pickup or shipping arrangements.

There is no statute of limitations. Section 74.308 states that the expiration of any contractual or statutory deadline does not prevent property from being treated as abandoned or bar an owner from recovering it.⁷ Property turned over 20 years ago is as claimable as property reported last year.

Watch Out for Third-Party Locators

You may get a letter or phone call from a company offering to recover unclaimed property for you in exchange for a fee. Texas caps those fees at 10% of the recovered property’s value, including expenses.⁸ Before you sign anything, run the free search yourself. Filing costs nothing, and the Comptroller’s office walks claimants through the paperwork.

Tax Treatment of Recovered Property

Getting back the principal amount of your own property is not taxable income, because it was already yours. Any interest the state paid while holding the property is reportable, and interest above $10 in a year will generate a Form 1099-INT.⁹

What Holders Must Do

Any entity holding someone else’s financial assets is a “holder” under the statute: banks, insurers, corporations, utilities, brokerages, and government agencies alike. Holders have three main obligations.

Due Diligence Before Reporting

Section 74.1011 requires holders to send written notice to the owner’s last known address before reporting property as abandoned.¹⁰ If the owner does not respond, the property moves to the annual report.

Annual Reporting by July 1

Holders file an annual report with the Comptroller by July 1 covering property that met its dormancy period as of the preceding March 1. The report must list the owner’s name, last known address, Social Security number if available, a description of the property, and the balance or value.¹ Filing goes through the Comptroller’s secure electronic portal, with a manual online tool available for holders reporting only a handful of items.⁴

Record Retention for 10 Years

Section 74.103 requires holders to keep records for 10 years from the later of the date the property became reportable or the date the report was filed. Records must include the owner’s name, Social Security number if known, last known address, a description of the property, and the account balance. The Comptroller can shorten this by rule, but 10 years is the statutory default.¹¹ During audits, gaps in records almost always cut against the holder.

Penalties for Holders Who Fall Behind

Section 74.706 sets a late-report penalty of up to 5% of the property’s value, with another 5% if the delay runs past 30 days. Willful noncompliance can trigger a penalty equal to 100% of the property’s value.¹²

Section 74.705 adds interest at 10% per year on property that should have been delivered but wasn’t. Interest runs from the date delivery was due until the date it actually happens.¹³ The Comptroller audits holders and can reach back many years, so a business that ignored its reporting duty for a decade can face the original property value, layered interest, and penalties all at once.

Disputes and Appeals

If the Comptroller denies your claim, usually for insufficient documentation or conflicting ownership records, you can submit additional evidence and ask for reconsideration. If that doesn’t resolve it, you can file suit in a Texas district court.¹⁴

Holders that disagree with audit findings, penalty assessments, or reporting determinations can request an administrative hearing through the State Office of Administrative Hearings, where an independent administrative law judge reviews the case. An unfavorable ruling can be appealed through the Texas court system.¹⁴ Given the way unclaimed property audits stack years of records and interest, counsel is worth engaging before the administrative hearing rather than after.

1
Texas Comptroller of Public Accounts. Unclaimed Property
2
Justia. Texas Property Code Title 6 – Unclaimed Property
3
Texas Comptroller. FAQs
4
Texas Comptroller of Public Accounts. Unclaimed Property Reporting Instructions
5
Texas Comptroller. Reporting UP Abandonment Periods
6
Texas Comptroller. Unclaimed Property Homepage
7
State of Texas. Texas Property Code Section 74.308 – Period of Limitation Not a Bar
8
Texas Comptroller. FAQs
9
Internal Revenue Service. About Form 1099-INT, Interest Income
10
State of Texas. Texas Property Code Section 74.1011 – Notice by Property Holder Required
11
State of Texas. Texas Property Code Chapter 74 – Report, Delivery, and Claims Process
12
State of Texas. href=”https://statutes.capitol.texas.gov/GetStatute.aspx?Code=PR&Value=74.706″ target=”_blank” rel=”noopener”>Texas Property Code Section 74.706 – Penalties
13
State of Texas. Texas Property Code Chapter 74
14
Texas Comptroller of Public Accounts. Contesting Disagreed Audits, Examinations and Refund Denials