States Receive Record Amounts of Unclaimed Property
October 22, 2012 Blog Post by Kathleen Moyer, Managing Partner – Compliance Services
While states work to locate owners of unclaimed funds, the state treasuries hold billions of dollars that is reported annually by various businesses. For example, the state of Connecticut is currently holding $602 million of unclaimed property. The state received $73 million of unclaimed property in 2012 and returned a record amount of $83 million during the same year to 18,381 owners. Some states like Wisconsin are holding over $411 million in safe keeping, while New York is holding $12 billion and California is holding $6 billion. With the October 31 and November 1 reporting due dates just round the corner, record levels of unclaimed property across the United States will end up in the state treasuries.
An estimate of $33 billion in unclaimed property is held by state treasuries across the United States, and a fraction (about $2 billion) of this is returned to the rightful owners every year. Although the exact dollar amount of unclaimed property in the United States is not known, experts estimate that federal and state governments are holding more than $400 billion in unclaimed funds (a large portion of this amount is said to consist of unclaimed funds held by the treasury of the United States).
Unclaimed funds can range from unclaimed savings and checking accounts, uncashed checks, outstanding insurance proceeds and various investment accounts. These unclaimed funds come from various businesses such as, banks, insurance companies, utility companies, hospitals and even retailers and manufacturing companies. However, unclaimed funds also include the contents of safety deposit boxes, stocks and bonds, which some states will auction off and hold the proceeds for safe keeping till the owners are located. While states’ policies may differ, they all require businesses to forward all unclaimed funds to the state when the funds have remained unclaimed after a defined period of time.
Have you ever lost track of a final pay check from an old employer, forgot to collect your security deposit from your last apartment in college, left an outstanding balance on your gift card or ask whether your parents had a life insurance policy or annuity? These are some questions that may be asked and the answer could determine whether the states have your unclaimed property. Some best practices for individuals include, making sure that you cash checks issued to you, update addresses with your banks, doctors’ offices, etc. to ensure you are reachable should you be due a refund. Keep your information written down in a safe place for your spouse should you be unable to take care of family matters. For safe piece of mind for you and your family, keep track of your assets. Make sure that information is listed in your will, so when you pass away your family can close your affairs with the information they need. In closing, check the states’ unclaimed property website (www.unclaimed.org or www.missingmoney.com) to see whether they have funds belonging to you and your relatives.