Well, let’s dive in. Unclaimed property, also known as abandoned property, refers to financial assets or intangible property that have been inactive for a specific period of time, and the owner cannot be located. This property is typically held by businesses or financial institutions on behalf of the rightful owner.
How Does Property Become Unclaimed?
There are several reasons property might become unclaimed. Here are some common scenarios:
- Change of Address: The owner moves and forgets to update their contact information with the holder of the property.
- Inactivity: The owner has a dormant account with no activity for an extended period.
- Uncashed Checks: A check is issued but never cashed by the recipient.
- Lost Owner: The owner may have passed away without a will or their whereabouts are unknown.
What Types of Property Can Be Unclaimed?
A wide variety of financial assets can be considered abandoned property. Here are some of the most common types:
- Checks: Uncashed wages, commissions, vendor payments, or refund checks.
- Deposits: Security deposits, utility deposits, or other refundable deposits.
- Financial Instruments: Stocks, bonds, dividends, or matured certificates of deposit.
- Insurance: Unclaimed life insurance benefits, annuities, or health insurance payouts.
- Other: Royalties, customer credits, unclaimed rebates, money orders, traveler’s checks, or even certain types of retirement accounts or employee benefits (depending on the state).
It’s important to note: Not all types of property are reported as unclaimed in every state. Some states may exclude gift cards or store credit. Always check your state’s specific regulations to see what types of property must be reported as unclaimed.
Dormancy Periods and State Regulations
The amount of time before property becomes unclaimed varies by state. In most cases, the dormancy period ranges from 3 to 5 years for most property types. However, some states have shorter dormancy periods, especially for unclaimed wages or salaries (often 1 year).
How to Claim Abandoned Property
If you think you might have abandoned property, you can easily search for it through the National Association of Unclaimed Property Administrators (NAUPA) website. NAUPA provides a central resource to search for abandoned property across all states. You can also visit your state’s unclaimed or abandoned property website directly.
By claiming your property, you can be reunited with funds that may be rightfully yours. Contact us to learn more about how we can help you navigate the complicated world of unclaimed property compliance.