You likely have free money just waiting for you to claim it. All you need to do is fill out a form and you can get your unclaimed property paid to you. There is around $60 billion in unclaimed property that is due to US residents still outstanding. It is estimated that 1 in 10 people have cash waiting for them. And best of all, it is free to search and find this money.
So what is unclaimed property? Do you have any? And how do you get your money back?
Key Takeaways:
- There is $60 billion in unclaimed property available and 1 in 10 people are estimated to have some money waiting to be claimed
- The average claim is over $2,000
- When a business is unable to contact a person for a year, they are required by law to send any money and property due to the State
- Searching for your unclaimed property is free and secure
What Is Unclaimed Property?
Unclaimed property is money that is owed to you from businesses or accounts that have not been claimed in a year or longer. The simplest example is a check from a business that is past its 180 day expiration date. Maybe you lost the check and forgot about it, maybe the company had the wrong address for you and you never got it.
The unclaimed payments tend to be from previous employers, matured financial products, or insurance refunds often.
When a business is unable to locate you, eventually they need to send the payment to the Federal or State unclaimed property Treasury. Although, it may take 3-5 years for your payment to make it to unclaimed property in some cases. This means it makes sense to periodically check to see if any new unclaimed property has been listed for you.
What are the Types of Unclaimed Property?
There are many types of property that can be listed on the unclaimed property sites:
- Checking or savings accounts, and contents of safe deposit boxes
- Stocks, uncashed dividends, mineral royalties, and trust distributions
- Certificates of deposits (CDs)
- Uncashed payroll checks and travelers checks
- Refunds, customer overpayments, and utility security deposits
- Insurance payments or refunds, life insurance policies, and annuities
- Mineral royalty payments
Many of the unclaimed assets were unintentionally abandoned due to people losing track of a physical property (like a safe deposit box) or moving and not updating a company with a new address.
Why Does Property Become Unclaimed?
There are many reasons property can be unclaimed. Sometimes the owner forgot about it or they moved and didn’t update their accounts with a current address. Often the property is unclaimed due to a person passing away or leaving it behind.
When employees get terminated or if a renter moves they may miss on their last paycheck or security deposit refund. Additionally, homeowners insurance that was paid but the homeowner moved before the coverage period was completed will be refunded.
Unclaimed property can be for yourself or for a business you own(ed) so ensure you check all possible names.
When does property become “Unclaimed”?
Property becomes unclaimed after a designated amount of time called the ‘dormancy period’ where there is no activity or contact. Once the property becomes ‘unclaimed’ it must, by law, be turned over to the state.
The Secretary of State will then list the unclaimed items on the official state website. This website is publicly accessible and can be searched for unclaimed property.
How To Claim Your Unclaimed Property
There are many government sites that allow you to search for your unclaimed property for free. You can start your search at either unclaimed.org or you can also try missingmoney.com.
At unclaimed.org you are able to search by state. You will want to look at every state you have worked or resided in as there is a chance you have unclaimed property there. Missingmoney.com is a national search and a good way to do a back-up check. The site is run by National Association of Unclaimed Property Administrators (NAUPA).
You search by your name or the name of your business and the sites will return any results.
If you have unclaimed property you need to submit the required form and often a proof of claim. Each state has its own rules and some may require you provide your social security number or notarized claim form.
Once all your paperwork is accepted, you will receive a check for the money owed. Many states handle the process electronically which makes for a fast turnaround on your claim.
The Final Word
The amount of unclaimed property is truly amazing. With 1 in 10 people estimated to have cash that is unclaimed it is worth searching the free government sites. Finding the average unclaimed amount of $2,080 can be a benefit to your personal financial situation.
Frequently Asked Questions (FAQs):
Unclaimed property is any financial asset that is unclaimed or abandoned by the owner for a specific period of time. This is usually a year. Examples of unclaimed property include: payroll, bank accounts, safe deposit boxes, investments, and refund checks.
After a specified period of time without any activity or communication, businesses are required by law to turn over any assets to the State. The state government then holds the property until it can find the rightful owner and return it.
Yes. The unclaimed property site is run by the National Association of Unclaimed Property Administrators (NAUPA) and it is free and secure to search.
There is estimated to be over $60 billion in unclaimed property waiting to be claimed. Nearly 1 in 10 people are estimated to have some money unclaimed.
The average amount of property claimed is over $2,000 per person.
The statute of limitations for unclaimed assets ranges from 7-12 years depending on the type of property.