What Happens to Unclaimed Money If No One Claims It?

• Author: Jacob Greene
• Posted: 2024-12-27

Unclaimed money does not disappear, and it is not lost forever. Instead, it is turned over to the state when no one claims it. There are specific laws that govern the disposition of unclaimed property, and every state has its own process. Financial institutions have a limited amount of time to turn over these assets, and the state controller then liquidates them.

The process is simple. In states like Massachusetts, you can visit the state's unclaimed property website to search through its database. Alternatively, you can use a private firm to help you locate unclaimed property. These companies usually charge a fee for the service. You must fill out the required forms and provide any supporting documentation, and you must do this before the money can be accessed.

Unclaimed money usually gets transferred to the state in which the assets were held. The state may determine that the funds have increased in value and therefore are taxed as ordinary income. The state can also create processes to enable legal owners of unclaimed property to recover them. Typically, unclaimed money is worth no more than $100.

Unclaimed funds can be cash, checks, money orders, security deposits, or contents of safe deposit boxes. Unclaimed funds can also come from individuals. Individuals often have unused gift cards, unclaimed account balances, or uncollected sales commissions. Unclaimed money may also come from unclaimed life insurance policies, investments, or other assets. Business owners who are in possession of such property must do their best to track down the owners or risk losing the asset.