Unclaimed or abandoned property refers to accounts in financial institutions and companies that have had no activity generated or contact with the owner for one year or more. When these accounts become dormant, by law, they are turned over to the state’s unclaimed property program. The purpose of unclaimed property laws is to protect consumers by ensuring money owed to them is returned to them, rather than remaining permanently with the institution or company.
Common forms of unclaimed property include savings and checking accounts, stocks, uncashed dividend or payroll checks, refunds, traveler’s checks, trust distributions, unredeemed money orders or gift certificates (in some states), insurance payments or refunds and life insurance policies, annuities, certificates of deposit, customer overpayments, utility security deposits, mineral royalty payments, and contents of safe deposit boxes.
Where to Look
A good place to start is www.missingmoney.com, which has links to all state databases. You can also go to www.unclaimed.org which is the NAUPA (National Association of Unclaimed Property Administrators) for more information. Every U.S. state, District of Columbia, Puerto Rico, the U.S. Virgin Islands, and Quebec, British Columbia and Alberta in Canada, and the nation of Kenya have unclaimed property programs that actively and continuously find owners of lost and forgotten assets.
Buyer Beware
Several business firms have used the states’ freedom of information acts to obtain owner information. These firms notify individuals that they will conduct a search for unclaimed property in their name for a fee. Many states do not even provide complete records to these firms to protect your privacy. The bottom line is that you may pay them to search if you wish, but all the information is accessible free of charge by searching the state databases.
In most cases, claims may be made into perpetuity, even by heirs.
How do I keep my property from becoming lost in the future?
Remember, property becomes lost due to a company having no communication with the owner. You should contact institutions that hold your money or property every year and especially when there is an address change or change in marital status. For security reasons, most financial
institutions do not forward mail. Keep accurate financial records and record all
insurance policies, bank account numbers with bank names and addresses, types of accounts, stock certificates, and rent and utility deposits.
Cash all checks for dividends, wages, and insurance settlements without delay.
Respond to requests for confirmation of account balances and stockholder proxies.
If you have a safe deposit box, record its number, bank name and address, and give the extra key to a trusted person.
Finally, prepare and file a will detailing the disposition of your assets.