Unclaimed property can be a result of poor estate planning.

Although heirs may be entitled to certain assets, they may be unaware of their existence.

When bank accounts, life insurance payouts, stock dividends, or tax refunds are not distributed to their rightful owners, they are classified as unclaimed property.

Sometimes, the financial institution, company, or government agency overseeing the asset cannot notify the rightful owners.

When this happens, funds are transferred to the state's unclaimed property division.

Although individuals can reclaim the property, they must identify the assets and prove ownership.

Recovering unclaimed property can feel likely navigating a maze if you do not understand the process.

What Counts as Unclaimed Property?

When assets have been abandoned and the owner has had no contact with the institution for a specified period, they are considered unclaimed property.

How long is this period?

Although it can vary, the typical window is three to five years.

What are the common types of unclaimed property?

Unclaimed property can include forgotten safety deposit boxes, bank accounts, inheritances, trust distributions, overpaid medical bills, utility deposits, tax refunds, and life insurance benefits.

They can also include uncashed checks like those received for payroll or insurance settlements.

What are the common causes for abandoned assets?

Name changes, address changes, or misplaced documentation can all lead to property going unclaimed.

Because it can be a common occurrence, it is essential to check for missing funds regularly.

How to Search for Unclaimed Property

Every state in the United States maintains an unclaimed property database, including Kansas and Missouri.

Individuals can search for abandoned assets under their name.

One helpful resource is MissingMoney.com, run by the National Association of Unclaimed Property Administrators (NAUPA).

People can use this website and IRS.gov to search for property nationwide.

What types of benefits can individuals check for on federal databases?

Federal unclaimed property includes undelivered tax returns, forgotten savings bonds, and unclaimed pension benefits from the Department of Labor.

In addition to making federal searches, people should search the databases for all the states where they have worked, lived, or held financial accounts.

If you are looking for unclaimed property for a deceased relative, you should also make a search using the name of this loved one.

Steps to Claim Missing Money

After identifying unclaimed property, you must file a claim with the relevant state agency.

What does the claim process require?

You must first submit the claim through the state's unclaimed property division either by mail or online.

You will then be required to provide proof of identity.

Some acceptable documents include your state driver's license or Social Security number.

Lastly, you must submit all supporting documents to establish ownership.

These documents include pay stubs, old bank statements, or insurance policies.

Although states will vary in processing times, most claims are resolved within a few weeks to a few months.

How can claims be made if the property belonged to a deceased relative?

You must provide additional documentation, such as a certified death certificate or proof of estate administration.

Avoiding Unclaimed Asset Scams

Scammers tend to target those who are vulnerable.

Consequently, individuals looking to recover unclaimed assets may be victimized.

Yikes!

Although legitimate people and organizations help recover missing assets, it is important to proceed with caution.

What are the standard warning signs of fraudulent individuals or companies?

Common indicators of fraud include demanding a fee upfront for location services, asking for personal financial information by phone or email, and claiming funds will be forfeited without immediate action.

State unclaimed property offices will not charge fees to claim missing money.

If you require assistance locating unclaimed property, consult an experienced estate planning attorney for guidance.

What are Key Unclaimed Property Takeaways?

Unclaimed property can include financial assets like insurance payouts, bank accounts, tax refunds, and utility deposits.

People can search state databases, MissingMoney.com, and IRS.gov for unclaimed assets.

To submit a claim for lost property, you must provide personal identification and documentation to confirm ownership.

Because scammers often seek to take advantage of those seeking missing property, people should not trust those seeking upfront fees or requesting sensitive personal information.

Regularly reviewing your assets and accounts and quickly cashing checks can minimize the risk of your property being unclaimed.

This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.

Reference: AARP (Dec. 27, 2024) "How to Find Unclaimed Assets"