How to find out if you have unclaimed money
- Billions of dollars of abandoned or forgotten money is sitting in state "unclaimed property" offices, and some of that money could belong to you.
- 1 in 10 Americans have unclaimed property, like uncashed paychecks, inactive bank or brokerage accounts, safe deposit contents, and more that have been turned over to the state.
- Americans can search for and claim their unclaimed money for free using their state's database or the national database, MissingMoney.com.
- Read more personal finance coverage.
Do you have unclaimed money sitting in a state treasury office? It's very possible. According to the National Association of Unclaimed Property Administrators (NAUPA), 1 in 10 Americans have unclaimed property.
Surprised? If your state is holding on to money that belongs to you, it's due to a federally mandated process called escheatment. According to escheatment rules, abandoned or forgotten property must be turned over to the state after a dormancy period has elapsed.
There are literally billions of dollars in unclaimed property sitting in state treasury funds around the United States. And some of that money could belong to you. Keep reading to learn more about the escheatment process and how to find out if you have unclaimed money.
What type of things can become unclaimed property?
Most often unclaimed property is intangible, like a bank or brokerage account or an uncashed paycheck. Other examples of intangible unclaimed property could be CDs, insurance policies, security deposits, trust funds, escrow accounts, or annuities.
It makes sense that most unclaimed property would be intangible. States simply don't have the space to become a "lost and found" for everyone's abandoned physical assets, like cars, boats, or real estate. However, there is one exception to the rule. States will hold on to safe deposit box contents as unclaimed property.
When do states claim items as unclaimed property?
Accounts or property can be considered "unclaimed" once there has been no "activity" for one to five years (rules vary by state). But what constitutes inactivity? With a paycheck, it would be the failure to cash within the allotted time period. Or, in the case of a bank or brokerage account, it could be considered inactive when important mail notices are returned undeliverable.
But, surprisingly, inactivity could simply be defined as a failure to "engage" with your account. And therein lies a danger for consumers. If you're someone who has a "set it and forget it" philosophy towards investing, your account could be escheated simply because you haven't logged into your brokerage account in quite some time.
Having your investment account turned over to the state may not sound like such a bad thing. But it's important to point out that state governments will typically sell the underlying securities. And by the time you realize that your account has been escheated and your investments have been sold, you could have lost out on years of potential growth.
Before a bank or investment broker reports your money as unclaimed, it must first make an effort to locate you. But if you've changed addresses and the financial institution can't track you down, it must be reported as unclaimed so the state can claim it. For these reasons, the SEC recommends that investors log into their accounts periodically to prevent them from being escheated.
How do states return unclaimed money?
Once money has been turned over to the state, it uses various methods to try to reunite the money with its rightful owner. Each state runs its own website where residents can check to see if they have unclaimed money. Most states also send their data to MissingMoney.com, the national unclaimed property database.
States may also hold outreach events at fairs, festivals, or malls, where citizens can search for unclaimed money. And they may try to contact owners using newspaper ads, mailings, or television events.
Once owners have been reached via any of these means, they can make a claim on their money or property. The claims process will vary by state, but you'll be asked to provide verification documents. Most states say that the claims process takes less than 90 days. But depending on your state and the type of property you're claiming, the process could take longer.
How can you find out if you have unclaimed money?
You can use your state's official website to search for unclaimed property. Simply search for your state's name + unclaimed property (i.e. "Florida unclaimed property"). In most cases, your state's site will be your first search result. The site that you're looking for will have a ".gov" address.
If you'd rather not search for your state's site, the NAUPA has a handy directory. Simply select your state on their interactive map and you'll be redirected to your state's database.
Most states also participate in the national database, MissingMoney.com. With MissingMoney.com, you only need to enter your name, city, and state to see if you have unclaimed money in one of the participating states. It takes less than 10 seconds.
If the MissingMoney.com search tool shows that you have unclaimed property, it will ask you if you're eligible to claim it.
If the property belongs to you, select "Yes I can claim." From there, MissingMoney.com will direct you to your state's official site to complete the claims process.
How much does it cost to claim missing money?
It's always free to search for and claim unclaimed property with your state. But be aware that you could receive a letter from a third-party "missing money locator," who will offer to assist you with your claim for a fee.
If you receive one of these letters, know that you are not obligated to use the services of the company that notified you about your unclaimed money. You can still claim your money, fee-free, on your own using any of the methods listed above.
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