Unclaimed Property - Why Does the State Have My Money?

You've probably seen it somewhere. Maybe one of your friends posted it on social media. Perhaps you saw an article about it. The state you live or lived in just might have some money or other property that belongs to you – unclaimed property. I thought I’d put together a brief Q&A to highlight the major points of what unclaimed property is and how it works.

What is unclaimed property? It can be things such as money (cash or checks), investments, and tangible items that didn’t make it to their rightful owner.

How did the state end up with it? All 50 states have unclaimed property laws on their books. Businesses are required to report unclaimed property on a form prescribed by the state. They have to list each item along with pertinent information such as the rightful owner’s name, last known address, social security number, description of unclaimed property, etc. Examples of items include uncashed checks, abandoned safe deposit box contents, and abandoned bank accounts with a balance. They submit the form along with remittance of the total value of the abandoned property. If the item is tangible, it’s surrendered to the state. The state now has the money or tangible item.

When does a business have to report an item as unclaimed? It depends on the state and the item. For Arizona, a check is considered unclaimed if it hasn’t been cashed for 1 year. Safe deposit box items are deemed abandoned if the owner doesn’t claim the items 3 years after the lease period on the safe deposit box ended. Check with your respective state’s laws for their “presumptions of abandonment”.

How does the state ensure businesses are reporting unclaimed property? Not too long ago, the answer to this question would be, “Not much”. If you think about it, it would take nothing short of an audit of EVERY business in the state to determine compliance. That’s a lot of manpower. So, audits are selective. Businesses that have never filed an unclaimed property report, especially established businesses, raise a red flag to the state. Many states have also imposed severe penalties for noncompliance – so severe that it’s in the organization’s best interest to file. It’s not a perfect, fool-proof system, but it’s an improvement.

How do I find out if I have any unclaimed property? Go to www.missingmoney.com. It’s a centralized website where you can search multiple states’ databases for unclaimed property. Not every state participates, but the site gives you links to the non-participating states’ unclaimed property websites.

I have property to claim. What’s next? Complete the claim form provided by the state that has your property and follow any instructions that come with it. You might be required to submit additional documentation. The Missing Money website has all the resources you need to help you get your property back.