In this article, you’ll discover what unclaimed property is, how to find it, and why proper estate planning can ensure your heirs receive their inheritance. Let’s get clear on what unclaimed property is and how it could impact you and your family.
What Is Unclaimed Property?
Unclaimed property refers to financial assets that have been abandoned or forgotten for a specific period, typically three to five years. The financial institutions can’t hold on to your money indefinitely. If no one comes forward to claim the assets, the law requires these assets to be turned over to the state for safekeeping.
Typical forms of unclaimed property include:
● Forgotten checking or savings accounts
● Uncashed dividends or payroll checks
● Abandoned stocks, bonds, or brokerage accounts
● Unclaimed life insurance proceeds
● Refunds and trust distributions
● Forgotten certificates of deposit and annuities
Often, these assets end up unclaimed because someone dies and their loved ones have no idea that the assets exist. It’s far more common than you may think, to the tune of approximately $60 billion across the U.S.
What the Process Looks Like
Step 1—Check multiple states. Conduct a search in your current state of residence and any other states where you’ve lived, worked, or conducted business.
Step 2 – Search variations of your name. Try different spellings and include your middle name or initial to ensure a thorough search. If your name has changed over the years, you must also check your former names. Again, search all variations of your name in states where you’ve lived, worked, or conducted business.
Step 3 – File a claim. If you find property owed to you, you must file a claim form (usually online) with the state holding your assets. You’ll need to file a form in every state where your assets are held; there is no one-form-to-rule-them-all.
Step 4 – Gather documentation to prove your identity and the identity of your loved one(s). Be prepared to provide documentation to prove your identity and your right to the property. This may include proof of address (at any address you’ve lived), proof of name change, or proof of marriage or divorce. You’ll need to provide similar documentation for your loved ones if you have a claim to their property.
Finally, be patient. Depending on the state and the complexity of your claim, the claim process can take weeks, months, or even years.
The Easy Way to Ensure Your Assets Aren’t Lost
A well-crafted Life & Legacy Plan includes a comprehensive inventory of assets that stays updated over time so your loved ones know exactly what you have when something happens to you.
Our Life & Legacy Planning process starts with education about what would happen to the assets you have and how you want them distributed after you die. From there, we’ll go through the many options available to you so you can pick the right plan that works for you and your family. If you’ve already created your Life & Legacy Plan with us, you already know how important it is to keep your asset inventory updated, so keep an eye out for our reminders to review and update your plan. However, if you know now that you need to update your plan due to a life change or a change to your assets, don’t hesitate to call us right away.
Ready to Secure Your Assets? We Can Help
By reading this article and educating yourself, you’re already on the path to protecting your assets for your loved ones. We can guide you the rest of the way.
AB Law, PLLC is a full-service business law and estate planning firm that serves clients throughout Texas. All consultations are free and no question is too silly, ridiculous, or complex. https://calendly.com/ablawpllc www.ab-firm.com