Have you ever wondered what happens to physical items that no one claims? Whether it’s something left behind in a forgotten safe deposit box, an uncollected inheritance, or abandoned personal belongings, unclaimed property is more common than you might think. Understanding how these items are handled can help you avoid losing valuable belongings or even find out if you have unclaimed treasures waiting for you!
What Is Unclaimed Physical Property?
Unclaimed physical property refers to tangible items that have been left without a rightful owner stepping forward to claim them. This could happen for various reasons, such as:
- The owner passing away without an heir knowing about the items.
- Forgetting about items stored in places like safe deposit boxes or storage units.
- Moving away and losing track of personal belongings or accounts.
Examples of unclaimed physical property include:
- Inherited items such as jewelry or family heirlooms.
- Contents of safe deposit boxes (wills, coins, watches, etc.).
- Items left in storage units.
- Physical assets from dormant estates or uncollected inheritances.
In these cases, the rightful owners, heirs, or beneficiaries don’t come forward to claim their belongings, leading the property to eventually be handled by various government or private agencies.
What Happens to Unclaimed Property?
The process that unclaimed property goes through depends on the type of item and where it is located. There are specific rules for unclaimed financial assets, but for physical property, the process is slightly different.
Here’s a breakdown of what typically happens to unclaimed physical property:
1. State Custody
Most unclaimed physical property ends up in the custody of the state. Each state has its own laws, but generally, after a certain period (often referred to as a “dormancy period”), the institution holding the property must turn it over to the state if no one claims it. This applies to things like the contents of safe deposit boxes and uncollected inheritances.
For example, if you stop paying for a safe deposit box or your estate remains unclaimed after your passing, the items may be sent to the state’s unclaimed property office. There, they are cataloged and stored.
2. Notification and Search
Before physical property is taken into state custody, most states require businesses and institutions (like banks or storage units) to make an effort to contact the rightful owner. This could involve sending letters, emails, or other notices. If these efforts fail and a certain amount of time passes without any claim, the items become officially “unclaimed.”
After the property has been turned over to the state, they will often publish a list of unclaimed items or make them searchable in online databases. Some states even run media campaigns to encourage people to check whether they have unclaimed property.
3. Storage and Auctioning
States cannot store physical property indefinitely. While they will attempt to keep valuable items (like jewelry, rare coins, or important documents) for some time, they often need to dispose of items that are not claimed after several years.
This usually happens through public auctions. State agencies may hold auctions, either online or in person, to sell off unclaimed items. For instance, if someone abandons a safe deposit box with a valuable ring, the ring might eventually be sold to the highest bidder after years of being unclaimed. Auction proceeds typically go into a state fund, and the rightful owner or their heirs can still claim the money if they come forward later on.
4. Claiming Property
Even after property has been auctioned off, the original owner or their heirs can often reclaim it—though they’ll usually receive the proceeds from the auction rather than the physical item itself. To claim unclaimed property, you usually need to provide proof of ownership, which might include identification, a will, or other legal documents.
It’s worth noting that the process for claiming unclaimed property is usually free or very low-cost, but you need to be proactive in checking databases and reaching out to state unclaimed property offices.
Common Examples of Unclaimed Physical Property
Now that you have a sense of how unclaimed property is handled, let’s look at some specific examples.
Safe Deposit Box Contents
People often store valuable items in safe deposit boxes, like documents, coins, or family heirlooms. If the account holder dies or moves without notifying the bank, these items may be forgotten. After a period of inactivity, the bank will turn over the items to the state. Items of value might be auctioned, while personal documents, like birth certificates, are usually kept for a longer period before destruction.
Inherited Items
In some cases, someone might inherit physical property—like a piece of land or valuable objects—without realizing it. If the person doesn’t claim these assets, they could eventually be turned over to the state. For example, if a distant relative leaves you an inheritance and you’re not aware of it, that property could be considered unclaimed if no one claims it after a certain period.
Storage Unit Items
When people abandon storage units or fail to pay the rental fees, the storage company may auction off the items inside. These auctions are often held after a few months of nonpayment, with any proceeds going to cover outstanding debts. However, if there is any excess, the original owner can still claim the leftover balance.
How to Find Out If You Have Unclaimed Property Using Finderish
If you think you might have unclaimed property, the good news is that it’s easy to check. Find your state (or the state you may have property in) here on Finderish and you’ll get detailed information on how to search for and claim your property.
To claim unclaimed property, you’ll need to provide some basic identification and paperwork. It’s a relatively simple process, and it could be worth your while, especially if the property is valuable.
Unclaimed physical property may seem like a unique issue, but it can affect anyone. Whether it’s a forgotten safe deposit box, an unclaimed inheritance, or abandoned belongings, understanding how unclaimed property is handled can help you avoid losing track of valuable items. Take a few minutes to check whether you or a loved one have unclaimed property, and don’t let those hidden treasures slip through your fingers!