Do Cashier’s Checks Expire and Become Unclaimed Funds?

Cashier’s checks are a secure payment method, used for significant transactions requiring guaranteed funds. Unlike personal checks, which draw from an individual’s account, a cashier’s check is drawn against the bank’s own funds. This makes them reliable, as the issuing bank assumes responsibility for the funds. Understanding their validity is important for both recipients and purchasers.

Understanding Cashier’s Checks and Their Validity

Cashier’s checks do not have a fixed expiration date printed on them, unlike personal checks often considered stale after 180 days. Funds are debited from the purchaser’s account at issuance and held by the bank, making it a direct obligation of the financial institution. This means the underlying funds do not simply disappear, even if the check is held for an extended period.

Even without a hard expiration date, a cashier’s check can become “stale-dated” over time. While banks are obligated to honor their own cashier’s checks, those held for an unusually long period (e.g., 60 to 180 days) might require additional scrutiny or reissuance. Some banks print “void after X days” on the check, indicating their policy for verification before cashing. This encourages timely deposit and helps banks manage outstanding liabilities.

When a Cashier’s Check Becomes Unclaimed

Even without a printed expiration, a cashier’s check can become classified as “unclaimed property.” This occurs when funds remain uncashed and inactive for a specified period, known as the dormancy period. State laws (Unclaimed Property Acts) dictate how long financial instruments like cashier’s checks can remain uncashed before funds must be turned over, or escheated, to the state treasury.

The dormancy period for cashier’s checks typically ranges from three to five years, though it can vary. The clock usually starts from the check’s issue date if it remains uncashed. Before escheatment, the financial institution must attempt to contact the payee or original purchaser at their last known address. If these efforts are unsuccessful and the dormancy period expires, the bank is legally obligated to report and remit these funds to the state’s unclaimed property division. This process ensures that funds with no apparent owner activity are held in trust by the state, protecting the interests of the rightful owner.

Retrieving Funds from an Uncashed Cashier’s Check

If you have an uncashed cashier’s check, especially an older one, contact the issuing bank directly. Provide details like the issue date, amount, and payee information. The bank can confirm the check’s current status, whether it is still active, considered stale-dated, or if the funds have been escheated.

If the bank informs you the funds have been escheated, initiate a claim through the appropriate state unclaimed property program. Each state maintains a database or website where individuals can search for unclaimed funds. To claim funds, you will need proof of identity and evidence of your right to them, such as the original check or a lost instrument affidavit. While claiming escheated funds is designed to be straightforward, it may take time, often weeks to a few months.