It’s surprising to learn that about one in ten Americans have unclaimed property waiting for them, with over $3 billion returned to rightful owners each year, according to the National Association of Unclaimed Property Administrators (NAUPA). Whether it’s from forgotten bank accounts, inheritances, or even old paychecks, unclaimed money is more common than many realize.
Understanding Unclaimed Money
What Causes Money to Go Unclaimed?
As life gets busier and financial situations become more complex, it’s easy to lose track of resources. Unclaimed money often arises from overlooked bank accounts, inheritances, or even refunds from class action lawsuits. State governments actively work to return this money, with New York State alone holding $16.5 billion in lost funds.
Why Money Becomes “Abandoned”
Funds are deemed abandoned when there is no activity in an account for a year or more. Financial institutions and companies are legally required to turn over these funds to state governments, who then attempt to return them to the rightful owners.
Steps to Find Unclaimed Money
Starting Your Search
The best starting point is MissingMoney.com, a database endorsed by many state treasuries for a multi-state search of unclaimed funds. If your state does not participate in MissingMoney.com, you can directly visit your state’s treasury website.
Checking for Federal Unclaimed Money
While there is no unified federal repository for unclaimed funds, individual agencies such as the IRS or the Department of Veterans Affairs may hold unclaimed money. For instance, veterans can check the VA’s website for unclaimed insurance funds.
Common Sources of Unclaimed Funds
- Bank Accounts and Safe Deposit Boxes: Check with your state’s unclaimed property office.
- Pensions: For unclaimed pensions from defunct companies, visit the Pension Benefit Guaranty Corporation’s website.
- Savings Bonds: Billions in matured, un-cashed U.S. savings bonds are waiting to be claimed. Visit TreasuryDirect for details.
- Life Insurance: If a relative has passed away, check with their life insurance company for potential benefits.
- 401(k) Plans: The National Registry of Unclaimed Retirement Benefits can help locate forgotten 401(k) funds.
- Unpaid Wages: The Department of Labor can recover back wages not paid by employers.
- Tax Refunds: The IRS’s ‘Where’s My Refund’ tool can help locate undelivered refunds.
- Veteran’s Benefits: Veterans and their dependents may have unclaimed benefits through the Department of Veterans Affairs.
Tips for Claiming Your Funds
Review the Source: Make sure you’re using government or reputable non-profit websites for your search.
Beware of Scams: Legitimate sites will not charge for searching or claiming funds.
Consider Professional Help: If significant amounts are involved, especially in cases like estates or large investments, consulting with a financial advisor may be beneficial.
Using Unclaimed Money Wisely
Finding unclaimed money can provide a financial boost, whether for paying off debts or enhancing your savings. For large sums, particularly from sources like life settlements or retirement funds, careful financial planning can help maximize the benefits of these newly discovered resources.
By actively searching for and claiming any unclaimed money, you not only recover what is rightfully yours but also potentially ease your financial burdens, contributing to a more secure financial future.
