We are a private organization, and are not affiliated with the government in any way or form. Our team of writers created this guide to help consumers.
Part I: Explaining Unclaimed Funds and Assets.
If you consider yourself a vigilant person when it comes to your personal finances, you may be shocked to learn that you could be leaving some serious cash on the table. You may be saying to yourself, I already work and live on a budget, I’m cautious with my money, I stay on top of how my total assets and where they’re located, and I always make sure to take note of every dollar I bring in. Even so, there may still be some cash that belongs in your pocket, just sitting out there. Somewhere.
You may even discover a source of forgotten or abandoned money, like an old checking or savings account, perhaps a refund that never found its way to its rightful owner, or even a gift card that still has a bit of a cash left on it. However, there are also times when you aren’t aware that there is money owed to you.
How Do I Get Started with MY Unclaimed Assets Search?
First know that unclaimed assets can exist in various forms, just sitting there waiting to be claimed by their rightful owners. These unclaimed assets can be in the form of money, funds, or currency that rightfully and legally belongs to someone, but for whatever reason, that person can’t be found. It’s also possible that due to some error, the cash could have gotten lost, uncollected, or unredeemed.
Did you know that statistics published by The New York Times, say that there are billions of dollars in liquid cash, bank accounts, tax refunds, property, insurance policies, and the like sitting in the laps of state and federal agencies and organizations? It’s true, money that has legitimately fallen through the cracks now belongs to them. From the information gathered by independent groups, they estimate the total amount of unclaimed assets is well over $80 billion nationwide.
The most recent data gathered by the National Association of Unclaimed Property Administrators (NAUPA) says that state agencies have recently been able to return over $3 billion in assets to the rightful owners. Even so, there is still around $8 billion in new assets that are unclaimed every year.
In addition to that, NAUPA reports that 1 in 10 people have unclaimed cash or property waiting for them that they are 100% oblivious to. This money is unfortunately lining the pockets of state and/or government agencies as we speak.
So, what about you? Do you think that you may have some unclaimed assets to your name? There could be cold hard cash floating around out there that belong to you that you may have no idea about. Want to learn more? Keep reading to see if you have any unknown money entitled to you, and if so, I’ll also cover how to get it, so stay tuned!
Types of Unclaimed Assets, Money, and Property
The National Association of Unclaimed Property Administrators states that unclaimed assets generally take on two main forms:
Tangible assets. Such as physical properties of value, like the contents of a safe deposit box — money, jewelry, or other valuables.
Intangible assets. Stocks, investments, checks that haven’t been cashed, or other types of non-liquid funds, etc.
Unclaimed assets can come from various sources for a multitude of reasons. Keep reading to learn more.
Checking or Savings Account Funds
Money that’s sitting in your bank accounts could be a source of unclaimed assets. Reasons include the following:
You may have forgotten about the balance in an old or dormant account that you haven’t used in years or perhaps you forgot to close an account altogether.
To make matters worse, if the bank were to close, the problem may only get bigger since the money is no longer accessible. While any money you have deposited with a financial institution is insured up to $250,000 thanks to the Federal Deposit Insurance Corporation, which means that your cash may remain tied up for who knows how long?
Or it could be something as simple as a glitch in the system that could mistakenly indicate you have no money in an account when the balance is actually in the black.
Unpaid Wages or Salaries
If you’ve recently quit a job, got fired, or changed locations, it’s possible that a former or recent employer may be trying to mail you your pay via paper check. In the case that they mailed it to the wrong address, or the possibility that the check was lost in the mail, you have unclaimed assets just floating around somewhere. This may happen if you moved, and your employer doesn’t have your new address.
If you’re someone who uses direct deposit, a tiny clerical or accounting error could mean the company is paying you less than what they legally owe you. A quick and easy solution to this is to remember to review your paystubs every pay period and look for any discrepancies.
Refunds
Missing refunds take several forms:
- Transactional, such as a refund from an online purchase you never received.
- Tax-related: Federal income tax refunds that may have been miscalculated or that weren’t distributed correctly if you didn’t file your taxes. Also included are refunds owed from the mortgage insurance paid to the U.S. Department of Housing and Urban Development, opening an FHA loan, and refunds from the Earned Income Tax Credit (EITC).
Security Deposits
Anyone that has ever moved before knows it can be a chaotic experience. Therefore, it’s common for all or some of a security deposit to be forgotten about and left on the table. Always remember to check with the landlord or property manager to ensure that you get what is rightfully yours.
The same can be said about any deposits made to utility providers or similar services where refundable deposits are mandatory.
Checks or Money Orders
Even though checks and money orders generally expire after a set amount of time from when they’re drafted, the uncashed balance can add up fast.
Insurance Policy Discrepancies
Just like tax refunds, accounting errors can also happen here, for example, let’s say that you switched insurance policies, and the provider failed to pay you any difference you’re owed. Those unclaimed funds could have gone towards your new policy but instead, they’ll be lost to error. The same thing can happen with a life insurance policy.
Trust Funds, Stocks, Bonds, and Certificate of Deposit Yields
Earnings from both long and short-term investments can also end up going unclaimed in the case of miscalculations, or if the person holding the account forgets about it and fails to cash in their funds.
Gift Cards
Holidays are a great time for ending up with a bunch of gift cards, but this is another place where you may not think you’re leaving a lot of cash disappear. Even if it’s only a dollar here or 2 dollars there, money that you leave on a gift card is money unclaimed.
Lawsuit Settlements
This is primarily regarding class-action cases where monetary winnings that you belong to you may not find their way into your wallet.
Pensions
If one’s provider goes out of business or even changes hands, this creates the perfect environment for benefits to go missing.
Safety Deposit Box Contents
Valuables, heirlooms, jewelry, collectibles, prized possessions, important documents, or other personal belongings that are kept tucked away in a safety deposit box can also go unclaimed if a bank changes hands or ends up going out of business. In cases like this, the owner of the box may end up never locating the box to claim their possessions.
Real Estate
Has there ever been any land or other type of property in your name that you didn’t know hasn’t been claimed? Believe it or not, real estate can also be a rather costly unclaimed asset.
What Happens to Unclaimed Assets?
We covered how money, funds, property, or other assets may go unclaimed but whether it’s account dormancy, clerical or mailing errors or a bank/institutional closure determines your next step. It could be something as simple as the owner of the funds cannot be located or contacted to even let them know about the money they’re missing out on.
These reasons only grace the top of the iceberg, but even in these cases, where do the unclaimed funds go?
If you think the business or bank inherits the funds, you’d be wrong. A business, bank, or other entity cannot legally retain the money for themselves if it does in fact belong to someone else, even in the case that the person cannot be found. Once there have been two to three years of account inactivity or the facility had no luck reaching the account holder, they’re obligated by law to turn over any assets to the correct state agency.
Escheatment
Escheatment is the process of handing over money to state agencies for safekeeping. Any funds that are not claimed by the correct person after that two-to-three-year dormancy period can be escheated. This can be done if the recipient forgets about funds in a bank account, fails to cash a check on time, or when the individual can’t be reached by the bank. In other cases, assets aren’t considered to become dormant until after five years have passed.
While the word “cheat” is hidden in there, escheatment doesn’t mean to cheat someone out of their money. The process is dedicated to protecting your assets until you’re able to be located or until you can find them. Custodial states, by law, are obligated to hold your property on your behalf.
The good news here is that if your money has been escheated to the agency in the state where you currently live, your money will most likely be held in perpetuity. It won’t be spent, and there is no expiration date set for you to claim your money.
If your money has been escheated, you will however first need to file a formal claim with the appropriate state agency to obtain it. At this point, it’d also be important for you to find out if there are other unclaimed funds to your name.
To do that, first, you need to search for any assets or funds in your name that you may not be aware of. After you have identified those assets, you can start the process of retrieving and collecting them.
Part II: Finding and Claiming Your Assets
If you’re ready to begin the search and collect any unclaimed assets, you may be happy to learn that it is a straightforward approach containing minimal steps:
- First, conduct a search for property or money in your name.
- Secondly, prove ownership of the assets.
- Thirdly, determine the appropriate agency in control of the assets.
- Lastly, file a formal claim for your funds.
Starting Your Search
If a company, financial institution, or organization has your unclaimed property, they are obligated to contact you before handing over the assets to the state government. Before they do this, they may first elect to employ the services of a third-party business that specializes in locating the proper owner.
If for some reason you cannot be located, but you do happen to have unclaimed property to your name, you will need to conduct your own search to find out more.
The National Association of Unclaimed Property Administrators (NAUPA), is a great place to start, allowing searches by the state for the appropriate government agencies that could be potentially harboring your unclaimed assets. Learn more at https://unclaimed.org
Another platform that offers a similar state-to-state search function, which also includes Puerto Rico and segments of Canada is www.MissingMoney.com
The Federal Deposit Insurance Corporation (FDIC) is great for searching for unclaimed funds that are connected to closed banking institutions. https://closedbanks.fdic.gov/funds/
The Internal Revenue Service’s search page may prove useful for searching for income tax refund statuses. Check it out here, www.irs.gov/refunds
The National Credit Union Administration website is useful when searching for unclaimed deposits, click here to check it out. www.ncua.gov/support-services/conservatorships-liquidations/unclaimed-deposits
The Pension Benefit Guaranty Corporation will help you search for and collect unpaid pension plan money owed to plan holders. Their website is https://www.pbgc.gov/search-unclaimed-pensions
The U.S. Bureau of the Fiscal Service is used to search for unpaid foreign claims that originated from outside the country. More info can be found at www.fiscal.treasury.gov/unpaid-foreign-claims/
The U.S. Department of Housing and Urban Development is great if you’re looking for FHA insurance refunds. If you happen to be in this boat, check out their site here! https://entp.hud.gov/dsrs/refunds/
The U.S. Department of Labor’s Wage and Hour Division will aid you in a search for unpaid wages. Check it out here https://webapps.dol.gov/wow/
The U.S. Securities and Exchange Commission is where you will go if you’re trying to see if any company owes you any money; their site is https://www.sec.gov/divisions/enforce/claims.htm
USA.gov’s page on unclaimed money enables anyone to start researching for funds that could be potentially owed to them. Are you among those people? Find out here www.usa.gov/unclaimed-money
Lastly, the U.S. Department of Veteran Affairs is designed to help find and claim lost funds attached to insurance policies for policyholders and beneficiaries. Find out more at https://insurance.va.gov/UnclaimedFunds
How Do I Claim Unclaimed Assets State by State?
One of the first steps you need to take is first making sure that you are indeed the rightful owner. For your funds to be returned, the state government or other agency will require that begin by filling out a claim form.
Every agency goes about this in its own way which means that you can’t just submit a universal application to receive your funds. Also, each state has its own online resource in place to aid the search for unclaimed assets, funds, or properties within their respected borders.
How Do I Claim any Unclaimed Tax Money that I may have From the IRS?
It’s always nice to get a refund after filing your taxes, but there are times when the IRS may owe you more than what you’ve received. They may even owe you money that has gone unclaimed for years that you have no idea even existed.
What Are Unclaimed Tax Refunds?
An unclaimed tax refund is the cash that’s owed to you by the IRS after you’ve filed your taxes, but for whatever reason, it goes unclaimed or never makes its way into your bank account or wallet. This could be due to:
- People who neglect to file an income tax return form for a deceased member of the family.
- Part-time employees who didn’t file even though some taxes were withheld by their employers.
- Tax refunds are undeliverable, either because the recipient has moved to a new location and changed addresses or can’t be found.
- Taxpayers or new filers may not even realize they were owed a tax refund.
- Those who may not have filed don’t realize that they could qualify for an earned income tax credit, which is made available to low- and moderate-income Americans.
- Workers who may not have filed because their gross earnings were well below the threshold, even if they made estimated tax payments.
- If you want to see if you qualify you can use the IRS online tool called the EITC Assistant, to find out if you qualify here: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant
How Do I Uncover and Receive any Unclaimed Tax Refunds?
If you want to find out if you have unclaimed tax refund money owed to you, the first place to look should be in your income tax return forms. Read over the information below to see what kind of options are available to you and what steps you should take next.
Review Your Records
Unclaimed tax refunds could happen just because you simply spaced out and forgot to file. It happens. In that case, start by checking to see if you’ve filed an income tax return for the last three years. Three years is the amount of time the IRS allows to file a tax return and claim a refund.
Contact the IRS
If a past tax return hasn’t been filed within the last three years, you can take care of everything by logging on to the Get Transcript Service through IRS.gov. Here is the link: https://www.irs.gov/individuals/get-transcript
Types of transcripts available include:
- Record of account transcripts
- Tax account transcripts
- Tax return transcripts
- Verification of non-filing letters
- Wage and income transcripts
On the IRS website, you can submit a request to obtain all the proper documentation that you may need to complete your income taxes, such as forms 1040 or 1040EZ, either by mail or online.
What Will I Need for Online Requests?
- Date of birth
- Email account
- Filing status
- Mailing address from latest tax return
- Social security number
- A mobile phone number linked to your name or a mailing address to physically receive an activation code.
- You’ll need a personal account number from a credit card, home equity loan, mortgage, home equity line of credit, or automobile loan.
What Will I Need for Mail Requests?
- Social Security Number or your ITIN (Individual Tax Identification Number).
- Date of birth
- The mailing address from the last tax return you filed.
Note: If your address has changed, download and complete IRS Form 8822 at https://www.irs.gov/pub/irs-pdf/f8822.pdf
Let’s say that you’ve completed the steps above and then you suddenly realize that you do need to go back and file income taxes for a previous year. This is what you need to do next:
Contact the IRS: Visit the Forms and Instructions page on IRS.gov to access the documentation you may need, such as the 1040. Click here for more: https://www.irs.gov/forms-instructions
Other: Contact former or current employers by phone, email, or mail to obtain copies of W-2s or 1099s, whichever you need, to begin the tax filing process.
Once you have obtained the proper information and have filled out all required forms, you then want to send your tax return to the address the IRS provides for your state. If you’d like to know where to send the return to, you can check it out here: https://www.irs.gov/filing/where-to-file-paper-tax-returns-with-or-without-a-payment
Recalculate to Correct Potential Errors
If there were any errors or miscalculations on past income tax returns, it may have you thinking that there is no refund available to you when in reality, there is. If you have filed returns for the last three years, go back and take a look at your files again to look for any potential discrepancies. Also, be sure to check if you qualify for the earned income tax credit.
If you have indeed filed all your tax returns in recent years, but you still have no idea of the amount of refund owed to you, all you need to do is request a copy of your recent records, and here’s how to do that:
- Online: Completing IRS Form 4506 at https://www.irs.gov/forms-pubs/about-form-4506
- Phone: 1-800-829-3676
If you’re absolutely positive of the amount owed to you but just haven’t received it yet, then you’re going to want to check out the IRS “Where’s My Refund?” page to request the funds. You’ll need the following information to make a request:
- Social Security Number or ITIN
- Filing status
- Exact refund amount
Here is the website, https://www.irs.gov/refunds
How Do I Stay Safe and Avoid Unclaimed Property Scams?
Third-party property search firms, also known as finders or locators, conduct their business by searching for unclaimed property that belongs to you, the people. They will have the resources available at their disposal to carry out a more thorough search for your funds that most consumers would likely overlook and miss altogether. Not all providers are honest or legitimate which means scammers are unfortunately a common occurrence in the industry.
In some states, third-party property locators must obtain a private investigator license to do business. Because of the risk of running into a scam, doing your homework, and checking out an agency’s license and where they received the license could help verify if they are a legitimate and honest business to work with.
It’s worth pointing out that anyone calling or contacting you who poses as a government entity with the offer of locating property or assets for any type of fee is likely a scammer. Always remember that government agencies won’t generally contact you about unclaimed assets. Always insist that the identity of the caller is verified and a legitimate call back number for the government agency they say they’re associated with is provided.
Scammers will go to great lengths to pull one over on someone. One of the telltale warning signs of a scam is receiving a call from a person who claims to somehow have your money already.
Consider asking these questions before employing an outside agency:
- Is the company legitimate? If you never heard of them before, or their services appear too good to be true, it’s worth a visit to their Better Business Bureau profile, or to reach out and contact your bank or a licensing firm to help determine if they’re legit and worth your business.
- Does the business in question have a proper mailing address or is it just a P.O. box? Did they provide you with appropriate contact information, such as an address, website, or phone number?
- Do the finder’s fees, surcharges or other estimates seem to be higher for the service compared to others? Note: DO NOT pay any type of fee in advance!
- How does the third-party service approach the escheatment process? Does it follow all the legalities of the unclaimed property laws?
- Has the company required or pressured you into the signing of non-disclosure contracts that may have caused you to reveal your identity to anyone at any point in the process?
- Has the third-party agency requested any sensitive personal or financial information? Information like your name, credit card number, bank account numbers, Social Security Number, or even passwords to other platforms. Note: Under no circumstances should you ever provide this information unless you have verified the agency or government office and can provide the information in a safe and secure means. Identity theft is a VERY real risk!
If you think you may have been the victim of fraud or would like to learn more about identity theft, contact your local state agency or the Federal Trade Commission at https://www.ftccomplaintassistant.gov/#crnt&panel1-1
How Do I Properly Avoid Lost Property in the Future?
Searching for these unclaimed assets and then hunting them down and proving that they are indeed yours can be a taxing and lengthy claims process. With all the resources and methods easily laid out in this guide, it should be a much more manageable venture.
Ideally, the best approach is to prohibit funds, assets, or properties from going missing in the first place and from becoming escheated into the pockets of state government agencies. It would be a good idea to keep this checklist of smart practices in mind:
- Keep solid contact information like your home address, phone number, and email up to date.
- Always notify banks, the Division of Motor Vehicles, or the Internal Revenue Service anytime you move or change your address.
- Always cash payroll and other types of checks as soon as you get them
- Review payment amounts. Sometimes money will go missing because of payment errors that have been overlooked.
- Consolidate your accounts. Combining accounts into one of fewer account(s) can make managing money or property far easier while also minimizing the chances of assets becoming unaccounted for.
I’m Ready to Get Started with my Unclaimed Assets Search:
As mentioned, keep your personal information up to date! Maintaining a record of current accounts can also help to prevent them from being unaccounted for, including:
- Checking/savings accounts
- Insurance policies
- Stocks and investments
- Utility and security deposits
Keep Accurate Records: Make a list of bank/credit union names, addresses, and safety deposit box numbers, and remember to keep safety deposit box keys and current account passwords in a safe place.
Maintaining a History: Keeping documents, account numbers, tax records, legal records, and anything else that you think fits into that category on file for at least 7 to 10 years. This will make things so much easier for you to reference if you keep track of all types of financial holdings. If you throw this information out prematurely, it can make it more difficult to locate the documentation needed to verify if owed money exists. The same things can be said about filing reclaimed assets on tax return forms.
Designate an Executor: By appointing a representative, such as a family member or valued friend, you may find it far more manageable to deal with accounts.
Closing
Hopefully, you learned something with this guide and now you find yourself armed with the knowledge to keep your hard-earned cash safe and maybe even find some unclaimed money of your own. There are a few key factors you should always remember and the first one is research! You could scour over guides all day but unless you research your unique situation, you’ll likely not find the answers you’re looking for. This guide is loaded with information to help you and if you can’t find it here, the links included in this guide would be your next step. Stay smart and keep your assets safely where they belong. In your account.