General Information
Finding lost, abandoned, or unclaimed property is a genuine need for many family members who have taken on responsibility for the financial affairs of an older person. Unclaimed property may consist of dormant savings and checking accounts, contents of safe deposit boxes, life insurance policies, utility deposits and undistributed dividends, uncashed checks, securities, dividends, insurance refunds or claims, oil royalties, wages, utility refunds/ deposits, and bail bonds. Finding this property may be of critical importance if the original owner has forgotten, or is able to communicate, where these assets may be.
There's a lot to find. To give you some idea of the possible scope of assets which might be affected, take a look at the Unclaimed Asset Checklist created by Unclaimed Assets Inc. (a great source of information on this subject). US states hold over $10 billion in unclaimed property, the US Pension Benefit Guarantee Corporate reports $19 million in unclaimed pension benefits, the Bank of Canada has $132 million in unclaimed bank accounts, British Columbia reports about $30 million in unclaimed money, and that's only a part of what's out there! Most lost accounts are small amounts, but there are stories like Ed Anderson of Salt Lake City who found $112,000 that belonged to him from bank stocks his father had invested in.
If it looks like a gold rush, it is! Even government agencies are promoting it as a "Treasure Hunt." So be aware that fraudulent activity abounds in this arena. Mail Group Associates sent out postcards to millions of senior citizens claiming that they have information that the addressee is entitled to unclaimed property, and for $14.98 they can obtain information on how to claim their property. What the recipients don't realize is that they won't receive information telling them how much they are entitled to, or even verify that they are entitled to unclaimed property. Instead, they are told how to contact the states and file a claim, information which is already available to the public for free. The State of Illinois has filed a complaint against Mail Group Associates for violation of the Consumer Fraud Act.
In the USA, holders are required to send abandoned property to the state specified in the owner'€™s last known address. Holders include, but are not limited to, financial institutions, insurance companies, oil and gas companies, hospitals, clinics, business corporations, state and local governmental entities, and retailers. The obligation to report and remit unclaimed property is triggered when there has been no owner-generated activity for a state-defined period of time, generally around five years. This period of inactivity is referred to as a €œdormancy period. Each state is involved in unclaimed property as a service to the citizens of its state, so that there is a single place to look for forgotten funds. The state also makes an effort to locate owners and/or heirs, and guarantees that this money will be held forever until claimed by the rightful owner.
Not all property is in these state databases, so further searching may be necessary. Property of federal agencies is held by the relevant federal agencies. Lost stock certificates may be held by the issuing company, since dormancy is hard to pinpoint. Pension benefits may be found via the Pension Search database of the U.S. Pension Benefit Guarantee Corporation, or by contacting the former employer directly. Life insurance benefits may be available, but may require direct contact with the insurance company.
When searching for lost assets, you will want to search any state or country where the owner has lived or had any personal or business dealings. You'll need the owner's name, social security number, and some proof of your relationship to that owner, such as a birth certificate or marriage license.