Tips for Finding and Claiming Funds
If you are like most people, you have probably thought about what you would do if you won the lottery, or perhaps came into an inheritance from a long-lost relative. It probably never entered your mind that the source of such fortune might just be yourself. According to the National Association of Unclaimed Property Administrators (NAUPA), nearly $42 billion is waiting to be claimed from state unclaimed property programs. That number is up from $32.8 billion in 2010.
According to the Georgia Department of Revenue, more than 224,000 people in the state had unclaimed money or property being held in 2015. Could one of them be you? Many Georgia residents who have found themselves the lucky recipient of unclaimed funds had no idea the funds were missing. In most cases, individuals move, change jobs or fail to inform their bank or insurance company of their new addresses. Their unclaimed money goes to either the state or federal government waiting to be claimed.
National Database
The good news is that most states participate in a national database which makes it much easier for individuals to search for unclaimed assets. You can search the NAUPA-endorsed and free website MissingMoney.com to find your family’s missing, lost, and unclaimed property, money and assets. Common types of unclaimed property include:
- Bank accounts and safe deposit box contents
- Insurance policies, CDs and trusts funds
- Uncashed checks and wages
- Stocks, mutual funds, bonds and dividends
- Utility deposits and escrow accounts
- Tax refunds
The site makes it very easy to for account holders – or their heirs – to track down missing assets. They do not even need account numbers. If an account holder can prove their claim, they can recover the cash, but not the interest earnings or investment gains the account might have earned while the fund was considered to be unclaimed.
Lost Life Insurance Policies
A word about “lost” life insurance policies—these may take some extra effort to claim. Claims made by survivors will be payable according to state and federal law. For life insurance policies, you generally need the name and Social Security number of the deceased and a copy of the death certificate.
While life insurance companies that can’t find the beneficiary must turn over the benefits to the state unclaimed property program, the company doesn’t always know that the policy owner has passed away.
If you don’t have the actual policy, you may need the assistance of an attorney or financial professional.
Smith & Howard Wealth Management recommends that individuals complete a "Love Letter," which contains all the information your family members would need to know about how to locate your accounts, as well as how you want your wishes to be carried out. While the “Love Letter” is not a legal document, it contains basic information that can be equally as important as that contained in other estate planning documents. A copy of the document is available for you to download here.
State Requirements and Trends
Every state has an unclaimed property program that dictates how financial institutions and companies have to turn assets over to the state once they have lost contact with the rightful owner for one year or longer. Once an account is considered abandoned, it is converted to cash and taken over by the state.
The Georgia Department of Revenue’s Unclaimed Property Program website is free to use and includes instructions for owners of unclaimed property, including personal claims, business claims and estate/heir claims.
As states increasingly look for sources of revenue, some are attempting to shorten the dormancy requirements before the accounts can be deemed to be abandoned. Some have shortened the time from five to seven years down to three.
According to Dana Terry, president of the Unclaimed Property Professionals Organization, “States are increasingly reverting to inactivity criteria to claim unclaimed funds, so it is important that consumers understand the importance of maintaining interaction with the companies that hold their financial assets.” Terry advises individuals to check the site but also maintain regular interaction with the companies that hold their financial assets.
6 steps for finding and claiming lost property (Source: CNBC)
- List all the states where you might have held accounts, along with your addresses in each state.
- Go to MissingMoney.com and click on your first state.
- Fill your name into the form and follow the directions.
- Repeat with any variations of your name, such as a maiden name or shortened version of your first name.
- Repeat with each state on your list.
- Repeat with Delaware, Massachusetts and Maryland – states where many financial services firms are registered – as some dormant accounts are listed at the firm's address instead of the original account holder's.
Beware of Scammers
While there is no charge for using MissingMoney.com, private companies charge fees to locate rightful owners. Legitimate companies will only ask you to pay after you receive your property, and state laws limit the amount they can charge. It is best to start with state and federal databases and check with the Federal Trade Commission’s consumer information site.