You Might Be Richer Than You Think
Did you know that approximately one in ten Americans has unclaimed money waiting to be recovered? The average claim is worth around $1,000, though some lucky individuals discover larger sums. If you've ever moved, changed jobs, switched banks or had a relative pass away, you might have money waiting for you somewhere in the system. Keep reading to learn what unclaimed money is, and how to find and claim these forgotten funds.
What is Unclaimed Money?
Unclaimed money refers to financial assets that have been abandoned or forgotten by their rightful owners. When organizations like banks, insurance companies, employers and government agencies cannot locate the owner of certain funds, they are legally required to turn these assets over to state unclaimed property programs after a specified dormancy period, typically three to five years. These entities must make reasonable attempts to locate the rightful owners before surrendering the property to the state.
Common sources of unclaimed money include forgotten bank accounts, uncashed payroll checks, unredeemed stocks and bonds, insurance benefits, utility deposits and tax refunds. Unlike abandoned physical property, which may eventually be auctioned, monetary assets remain available for claim indefinitely in most states. The government holds these funds in trust until the rightful owner or heir comes forward with proof of entitlement.
State Unclaimed Property Programs
The most comprehensive way to search for unclaimed money is through state unclaimed property offices. Each state maintains a database of unclaimed assets turned over by businesses and financial institutions operating within its borders. The majority of lost money is found through these state programs.
Begin your search in states where you have lived, worked or conducted business. Since property is reported to the state of the owner's last known address, searching your current and former states of residence should be your first step. Most state unclaimed property websites offer free searches that require only your name to get started. For a nationwide search covering all states, visit the National Association of Unclaimed Property Administrators website at unclaimed.org or its consumer site, MissingMoney.com. These platforms provide links to official state databases and allow multi-state searches in participating states.
Federal Government Programs
While states handle most unclaimed property, the federal government also holds substantial unclaimed funds in various programs. Unlike state programs, federal unclaimed money must be searched through specific agencies rather than a central database.
Tax refunds represent another major source of unclaimed federal money. Each year, thousands of tax refund checks are returned to the IRS as undeliverable, usually due to outdated addresses. You can check for undelivered refunds through the "Where's My Refund?" tool on IRS.gov or by calling the IRS directly. Unclaimed refunds typically remain available for claim for three years from the original filing deadline.
Banking and Investment-Related Unclaimed Money
Financial institutions frequently report dormant accounts to state unclaimed property offices, but checking with organizations directly can sometimes yield faster results. If you've moved without updating your address with banks or investment firms, your accounts may have been declared dormant.
The Federal Deposit Insurance Corporation (FDIC) holds unclaimed funds from failed banks and savings associations. If you had an account at a financial institution that was closed by the FDIC, you can search the FDIC's unclaimed funds database. Similarly, the National Credit Union Administration (NCUA) maintains records of unclaimed deposits from liquidated credit unions.
Insurance-Related Unclaimed Money
Insurance policies represent a substantial source of unclaimed funds, particularly life insurance benefits that beneficiaries never collected. Many people are unaware they've been named as beneficiaries on policies purchased by relatives or friends. The Insurance Information Institute estimates that billions in life insurance benefits remain unclaimed nationwide.
If you believe you might be the beneficiary of a life insurance policy but don't have the documentation, you can start by checking state unclaimed property offices, as unclaimed benefits are eventually turned over to the state. For more direct searches, services like the National Association of Insurance Commissioners' Life Insurance Policy Locator Service can help match consumers with policies. This free service submits requests to participating insurance companies to check their records for any policies matching the provided information.
Employer-Related Unclaimed Money
Previous employers may be holding unclaimed wages, bonuses, commission payments or benefits. This often happens when final paychecks are issued after an employee has already departed or when profit-sharing distributions occur after employment ends.
Start by contacting the human resources or payroll departments of your former employers directly. If the company has gone out of business or been acquired, try to track down the successor company or the entity managing the closed business's affairs. Bankruptcy trustees often hold funds for distribution to former employees of liquidated companies.
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