When it comes to organizing finances and assets, many people overlook one critical area: unclaimed property. This is a category of assets people might have forgotten about, didn’t know they had, or simply left behind over the years. Think about that savings account you started at a bank you no longer use, a long-lost paycheck, or a refund check that never reached you. These forgotten funds can add up, and many people are surprised to find that they may actually be owed money!
In this article, we’ll dive into what unclaimed property is, how to search for it, and why you should make sure to claim any assets that belong to you or loved ones—especially when it comes to what happens if someone dies with unclaimed property.
What is Unclaimed Property?
Unclaimed property refers to money or assets that a person owns but has lost track of over time. This might happen for a variety of reasons, including:
- Moving and forgetting to update your address with a financial institution
- Leaving a job and not cashing your final paycheck
- Overpaying utility bills or rent without claiming a refund
- Forgetting about an old savings or investment account
Banks, businesses, and government agencies are required to turn these assets over to the state after a certain period of time if the owner doesn’t claim them. In most states, this “dormancy period” is between one to five years, and once it’s over, the assets go into state custody as unclaimed property.
Types of Unclaimed Property
Unclaimed property can take many forms. Some common examples include:
- Bank accounts and certificates of deposit (CDs)
- Stocks, bonds, and mutual funds
- Uncashed payroll or refund checks
- Insurance policies and payouts
- Safe deposit box contents
- Utility deposits
- Gift cards or store credits
Because people often don’t know they’re missing this property, states have online databases to help people search for unclaimed assets and claim them easily.
Why Is It Important to Search for Unclaimed Property?
Reclaim What’s Rightfully Yours
If you have unclaimed property, that money is yours to use. It’s a forgotten resource that could be used for bills, savings, investments, or any other expense. Searching for unclaimed property can take only a few minutes and can sometimes result in a pleasant surprise—a small or even significant windfall!
Prevent Assets from Getting Lost Over Time
Every year, billions of dollars are held in unclaimed property across the U.S. Once your assets are transferred to state custody, the state will keep them indefinitely. However, if you delay claiming them, you might miss out on interest or dividends, especially for stocks or bonds. In some cases, the property might be sold off by the state, especially if it’s in the form of physical items from a safe deposit box.
Ensure Your Heirs Can Access Your Assets
If something happens to you and you have unclaimed property, your heirs might not know about it. Even if they do, claiming assets after a loved one’s death can be more complicated, requiring legal paperwork and proof of ownership. By regularly searching for unclaimed property, you make sure any assets are in your possession and can be passed down more easily.
What Happens if Unclaimed Property Is Left Unclaimed?
If you leave property unclaimed for too long, several things can happen:
Loss of Access to Potential Growth
Some types of property, like stocks or bonds, can grow in value over time. If left unclaimed, you might miss out on any growth or dividends these investments would have generated.
Sale or Auction by the State
For items such as the contents of a safe deposit box, the state might eventually sell the items at auction after a specified period. This means if you had valuable or sentimental items, they could be sold to others instead of being returned to you or your family.
Limited Access for Heirs and Beneficiaries
Unclaimed property can become especially complex when the owner passes away. While heirs can typically claim a deceased relative’s property, it requires extra steps and legal verification. Without a will or estate plan, the process can become even more difficult, potentially resulting in delays or disputes over ownership.
Final Thoughts
Unclaimed property is often called “hidden wealth” for a reason. It’s easy to lose track of these assets, but they belong to you and can serve a valuable purpose in your financial picture. Regularly checking for unclaimed property ensures that you reclaim what’s yours, avoid the complications of unclaimed assets after death, and make sure your money and belongings end up in the right hands.
Take a few minutes to search today—you might be pleasantly surprised by what you uncover!