Why So Much Money Ends Up as Unclaimed Property and What That Means for You

This February 1, states across America observe National Unclaimed Property Day, chosen to remind you about a surprisingly widespread financial problem: billions of dollars in forgotten assets currently held by state governments, waiting for their rightful owners to claim them.

This observance exists for one practical reason: to help you reclaim money and assets that already belong to you and to prevent future losses before they happen. Understanding what unclaimed property is, how assets become lost, and what you can do to protect yourself could mean recovering funds that could be put to good use, and ensuring your family never loses track of what you've worked hard to build.

When most people hear the term "unclaimed property," they might imagine abandoned real estate or forgotten treasures hidden in old storage units. The reality is far more ordinary, and it affects millions of Americans every year.

Unclaimed property refers to financial assets that have gone dormant because there's been no activity or contact between the owner and the institution holding the funds for a certain period, typically between one and five years depending on state law. When a company can't reach the owner after this legally required time, it must turn the asset over to the state through a process called escheatment. The state doesn't own the property permanently but becomes the caretaker until someone claims it.

The types of assets that become unclaimed are surprisingly common and include forgotten bank or credit union accounts, often opened years ago with minimal balances that seemed too small to worry about. Uncashed checks or refunds frequently go missing after someone moves without updating their address.

Other examples include stocks, dividends, or mutual funds purchased decades ago and forgotten, life insurance payouts that beneficiaries never knew existed, contents of abandoned safe-deposit boxes, and even payroll checks from former employers. When someone changes jobs and moves without leaving a forwarding address, that final paycheck can easily become unclaimed property.

People lose track of assets for remarkably ordinary reasons that have nothing to do with irresponsibility or carelessness. Changing jobs means potentially losing track of old retirement accounts amid the chaos of starting a new position. Name changes through marriage or divorce can disconnect you from accounts registered under a previous name, especially if you don't notify every institution about the change.

When a loved one dies, family members often don't know about every account or policy the deceased held. Without a comprehensive list of assets or a system for tracking financial information, important accounts simply get overlooked. This may account for significant sums that the deceased wanted their loved ones to have, and which could have made a difference in their lives.

The scope of this problem is staggering. Across all 50 states, governments collectively hold an estimated $70 billion in unclaimed property. According to the National Association of Unclaimed Property Administrators, states return billions annually to rightful owners, yet the total amount held continues to grow each year. This means that despite ongoing awareness efforts, more property becomes unclaimed faster than it gets reunited with owners.

These statistics represent real people who worked hard for their money, saved diligently, or were entitled to benefits they never received. The problem isn't going away on its own because modern financial life has become increasingly fragmented. Most people maintain relationships with multiple banks, investment companies, insurance providers, and employers throughout their lives, creating numerous opportunities for assets to fall through the cracks. Accounts are managed online, without paper statements, and unless loved ones have knowledge of the accounts, plus the passwords to access them, assets will get lost.

National Unclaimed Property Day was established with three clear goals. First, it encourages people to search state databases and reclaim lost assets that belong to them. Second, it educates the public about how easily property becomes unclaimed, helping people understand the problem isn't just about irresponsibility. Third, it aims to prevent future losses through better financial organization and planning.

February 1 was chosen intentionally as an early-year date, serving as a "clean-up and reset" moment before tax season begins and before another year passes with assets sitting idle in state custody. States, consumer advocates, and financial professionals use the day to push a simple message: "Check. Claim. Prevent."

The most immediate action you can take right now is to search  (or, “check”) for unclaimed property in your name. Every state maintains a free, searchable database of unclaimed property. Visit your state treasurer or comptroller's website and look for the unclaimed property section. The search takes just a few minutes and requires only your name and the state where you've lived.

There is no one database to search for property, so if you've moved during your life, search in every state where you've resided or worked. The National Association of Unclaimed Property Administrators maintains a website at unclaimed.org with links to all state databases, making it easy to search multiple states quickly.

When searching, try variations of your name including your maiden name if applicable, nicknames you may have used professionally, and names with and without middle initials. Companies may have listed your property under any of these variations. If you find property that belongs to you, the claiming process is free. States don’t charge fees to return property to rightful owners, though you may need to provide identification and documentation proving ownership. If you’re claiming property for a loved one’s estate, you’ll also need to provide a death certificate, proof of your identity and other identifying documents the state requires.

The claiming process is arduous and time consuming - and states can deny claims. Therefore, the more important work involves preventing future losses. The right estate planning can help. When you work with me, I’ll support you to create a comprehensive list of all your financial accounts, including banks, investment firms, retirement accounts, life insurance policies, beneficiary designations, and any other assets you own. You’ll include account numbers, contact information for each institution, and approximate values. I can even help you update this inventory annually.

I also recommend that you store your inventory in a secure but accessible location, and make sure at least one trusted person knows where to find it and how to access it if you become incapacitated and when you die.

Finally, it’s a good rule of thumb to update your address and contact information with every financial institution whenever you move. Consider consolidating accounts where it makes sense, as fewer accounts mean fewer opportunities for something to slip through the cracks.

National Unclaimed Property Day shines a light on a quiet but costly truth: if no one knows what you have, where it is, or how to access it, your assets can disappear into bureaucracy. The goal isn't just to reclaim forgotten assets. The real goal is to make sure nothing you worked for ever becomes "lost" in the first place.

This February 1, take a few minutes to search for unclaimed property. Then take the more important step of organizing your financial life so your assets stay with the people you intend to benefit from them. Your future self and your loved ones will thank you.

National Unclaimed Property Day reminds us that even the most diligent people can lose track of assets in our increasingly complex financial world. But you don't have to leave this to chance or rely on a once-a-year reminder to protect what you've worked so hard to build.

As a Personal Family Lawyer® Firm, we help you create a comprehensive Life & Legacy Plan that ensures your assets reach the people you love instead of becoming another state statistic. Once you've created your plan, you can rest easy knowing your wishes will be honored, your loved ones cared for, and your property protected. I also have systems in place to review and update your plan regularly as your life changes, taking the burden off your shoulders while ensuring nothing falls through the cracks.

This February 1, do more than just search for unclaimed property. Take the step that truly protects your family's future.

Click here to schedule a complimentary 15-minute discovery call to get started.

This article is a service of a Personal Family LawyerⓇ Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy PlanningⓇ Session, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own, separate from this educational material.

Proper estate planning can keep your family out of conflict, out of court, and out of the public eye. If you’re ready to create a comprehensive estate plan, contact us to schedule your Life & Legacy Planning Session. Even if you already have a plan in place, we will review it and help you bring it up to date to avoid heartache for your family. Schedule online today.