Unclaimed property is a piece of land, assets, or inactive accounts that have been turned over to the state. This is usually due to years of negligence.
In this post, we’ll go over how a property becomes unclaimed, and how you can find it.
How States Handle Unclaimed Property
States have their own property divisions that manage unclaimed property. Usually, it takes around two years for a property to be considered unclaimed.
Some states hold properties to allow for the original owners or heirs to collect it.
In other places, properties that go unclaimed for too long fall into the state’s possession. When this happens it’s called escheatment.
Many times unclaimed properties are auctioned off or converted into cash. This amount is usually very small, though. They make up less than 1% of a state’s revenue.
Examples of Unclaimed Property
Unclaimed property can be in many different forms — they can range from land or deposit boxes to insurance policies or financial documents.
Stocks, bonds, and mutual funds can become unclaimed property as well. Bank accounts in certain states that are inactive for 3 years or more are also subject to become unclaimed property.
Unpaid Wages From Employers
The Department of Labor (DOL) may be able to reclaim money owed to you if your employer broke labor laws.
Search DOL’s database to see if you have unpaid wages due. States vary in how long they will keep these wages, but it’s typically up to 3 years.
Banks And Other Investments
The Federal Deposit Insurance Corporation (FDIC) lists all unclaimed funds from failed financial companies. To learn more about finding unclaimed money from credit unions, visit the National Credit Union Administration’s website.
The Securities and Exchange Commission (SEC) also lists cases in which a company or person owes an investor money.
Go to TreasuryHunt.gov to find matured savings bonds that have stopped earning interest. You can also replace a lost or destroyed savings bond.
National Association Of Unclaimed Property Administrators (NAUPA)
NAUPA was formed to help people in getting unclaimed properties. It has a large database of government records for unclaimed property in every state.
Owners of unclaimed property can find their assets by filing a claim in the appropriate state.
Usually, only half of a state’s unclaimed property is reclaimed every year, so be sure that you’re not missing out. You can find out more by going to Unclaimed.org.
