There may be money out there that belongs to you.
Billions of dollars go unclaimed every year, and for many Americans, the odds of finding their lost money is like playing the lottery. And yet that money may be as close as a website search and a claim form.
"There's so much unclaimed property out there," said Mario Hernandez, financial center leader for Bank of Texas. "A lot of people don't realize how much money they have just sitting there."
There is more than $20 billion in unclaimed property in the U.S., according to the National Association of Unclaimed Property Administrators. Unclaimed property is defined as "property or accounts within financial institutions or companies in which there has been no activity generated (or contact with the owner) regarding the property for a period of time."
That period of time is usually about three years, after which the property becomes "unclaimed," and must, by law, be turned over to the state. One in seven Americans might be owed a share of those billions of dollars in state and federal treasuries.
Each state has its own unclaimed property office responsible for holding and returning unclaimed money to its rightful owners, including:
- Money from bank accounts
- Insurance policies
- Utility deposits
- Tax refunds
- Even lost wages
Even if your property does end up in state coffers after being unclaimed, recovering it may be as simple as filing a claim, depending on the state and the property value.
Early in his banking career, Hernandez found out about the Texas comptroller's unclaimed property website. He searched and discovered that he had four unclaimed paychecks. "It wasn't much," he said, "but I was ecstatic. I wanted to share the wealth."
He shared the link with his clients at the bank, and many were immediately successful in finding their own forgotten money.
"I had about six people call me to thank me for the tip," he said. "One client found $1,000. For some, it was just the extra bump they needed to get them through to the next paycheck."
How to search for your own unclaimed property
The Association's website, Unclaimed.org, has a free tool with links to every state's unclaimed property database. To search the national database, provide your name and address. You can also search by company name or type of unclaimed property. To search state databases, you will typically need to provide your name, address and Social Security number.
If you find that you have unclaimed property, you will need to file a claim with the appropriate state or federal agency. The claim process can vary depending on the type of unclaimed property and the state or agency involved. The length of processing time will vary by complexity and which agencies are involved.
How to keep track of your property
Hernandez recommends a few ways to protect yourself from losing your money in the first place:
- Keep records of all of your financial accounts and investments.
- Update your address and contact information with your financial institutions and other companies that hold your money or accounts.
- Review your bank statements and other financial statements regularly to make sure that all of the activity is accurate.
- If you change jobs, contact your former employer to make sure you have received all the money you are owed, including your final paycheck and any accrued vacation pay.
- Transfer 401(k) or retirement accounts associated with former employers to your current employer or an individual retirement account (IRA). This will limit the number of accounts you need to track.
Hernandez is a big advocate of using technology to keep track of your accounts.
"I always tell clients that online banking is the best tool for you if it's used properly," he said. "You'll be able to see your accounts and see what's going on at any time."
Types of unclaimed property
Unclaimed property can come from a variety of sources, including:
- Dormant bank accounts
- Abandoned safe deposit boxes
- Savings bonds
- Forgotten retirement accounts
- Insurance policies
- Utility deposits
- Tax refunds
- Unpaid or lost wages
- Pensions
- Stocks and bonds
- Unpaid dividends
- Gift certificates
- Refunds from overpayments
- Deposits from rental properties
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