Lost Money, Found: How to Reclaim Your Unclaimed Assets
Did you know about one in every seven people in the U.S. has unclaimed property or assets (like forgotten bank accounts or security deposits) being held by a state government, according to the National Association of Unclaimed Property Administrators (NAUPA)? Understanding how to uncover and reclaim these funds is crucial. The journey to reclaiming assets starts with recognizing what qualifies as unclaimed property and knowing where to look.
What Is Unclaimed Property?
Unclaimed property refers to financial assets forgotten or left unclaimed by their rightful owners. Unlike real estate or vehicles, unclaimed funds typically include:
- Bank Accounts – Checking and savings accounts with long periods of inactivity.
- Investments – Neglected stocks, bonds, and brokerage accounts.
- Insurance Proceeds – Life insurance benefits a beneficiary may not be aware of.
- Dividends & Interest – Payments that have gone uncashed.
- Gift Certificates – Unredeemed store or promotional balances.
- Payroll & Refund Checks – Uncashed paychecks, rebates, or refunds.
- Safe Deposit Boxes – Abandoned tangible property that has value.
- Trust & Escrow Accounts – Unclaimed distributions that beneficiaries should have received.
How Do Funds Become Lost?
Financial assets become unclaimed due to a variety of reasons, such as:
- Moving to a new address without updating account information.
- Changing a name due to marriage or divorce.
- Forgetting about old accounts or investments.
- Failing to cash checks in time.
When assets remain untouched for a dormancy period (typically between one and five years), financial institutions are required to turn them over to the state. Governments then manage these funds and provide methods for individuals to reclaim their lost assets.
How Can I Find and Claim Unclaimed Property?
State governments have made significant efforts to streamline the process of recovering unclaimed property, ensuring that searches and claims are free and accessible. You can follow these steps to see if you have unclaimed property.
- Search Online – Visit MissingMoney.com, the official site endorsed by NAUPA, to search for unclaimed property across 49 states, the District of Columbia, Puerto Rico, and Alberta, Canada. Individual state websites also offer search tools.
- Verify Ownership – If you find a match, carefully review the details and provide any necessary documentation to confirm your ownership.
- Submit a Claim – Follow the state’s instructions, which typically require proof of identity and rightful ownership.
- Repeat Annually – Since new properties are added to databases regularly, it’s a good idea to search each year.
In addition to state-held unclaimed property, some federal agencies and organizations also hold unclaimed funds. Here are some resources to help you locate and claim these assets.
- Unpaid Wages – If you believe an employer owes you back wages, search the Department of Labor’s database for unclaimed wages.
- Pensions from Former Employers – The Pension Benefit Guaranty Corporation (PBGC) maintains a database of unclaimed pensions from private companies that have ended their defined pension plans.
- Retirement Plans from Former Employers – The Employee Benefits Security Administration (EBSA) maintains a database for workers and beneficiaries looking for private company retirement plans that may still owe them benefits.
- Bank Failures – The Federal Deposit Insurance Corporation (FDIC) provides information on unclaimed funds from failed financial institutions.
- Credit Union Failures – The National Credit Union Administration (NCUA) lists unclaimed deposits from liquidated credit unions.
- Savings Bonds – Use TreasuryHunt.gov to find matured savings bonds that have stopped earning interest.
- VA Life Insurance Funds – The U.S. Department of Veterans Affairs (VA) maintains a database for unclaimed insurance funds owed to veterans or their beneficiaries.
- FHA Mortgage Insurance Refunds – If you had a Federal Housing Administration-insured mortgage, you might be eligible for a refund. Check the Department of Housing and Urban Development (HUD) database to see if you are owed a refund.
How Do Unclaimed Funds Impact My Taxes?
While discovering unclaimed property can feel like an unexpected financial windfall, it is important to consider the potential tax implications. The tax treatment of reclaimed assets depends on their nature and amount.
- Taxable Assets – Capital gains from stocks, interest income from investment vehicles, and certain retirement distributions may be subject to federal and state taxes.
- Tax-Exempt Assets – Some municipal bonds and specific retirement plans may not incur tax liability.
Consulting a CPA can help clarify any tax obligations or benefits associated with reclaimed assets.
Reclaiming unclaimed property is easier than many people realize and could lead to the recovery of valuable assets. As always, your Blue Trust financial advisor is here to support you and answer any questions you may have. If you do not have a Blue Trust advisor and are interested in speaking with one, please reach out to info@bluetrust.com or call 800.841.0362.