Is Unclaimed Property A Scam?
You may have seen ads or come across a post somewhere mentioning how you can claim lost or unclaimed property. Perhaps someone even reached out to you personally.
It sounds like something that’s too good to be true, in other words sketchy, but it’s not a scam.
You are right to be cautious but there’s actually much more to it. It’s important to find out the facts for yourself.
What Does Unclaimed Property Mean Exactly?
Unclaimed property refers to anything with monetary value that the state considers abandoned. This does not only include physical property but also cash and cash equivalents such as money in bank accounts, uncashed checks, stocks and bonds.
The laws as to the procedures and timeline may vary from state to state but typically businesses and local governments have to turn over abandoned property to the state after some time has passed, usually after a few years. They cannot just hold on to your property themselves but have to turn it over to the state for safekeeping.
Note that federal government agencies have their own rules. As they are not under state jurisdiction, they keep the property within their respective departments but also have procedures in place to identify and manage unclaimed property.
Do You Need to Pay Someone to Find Unclaimed Property?
This is where you need to be extremely cautious. Strictly speaking, you do not need to pay anyone to find your unclaimed property. In fact, government officials have been known to advise against it.
The process to search for and claim your unclaimed property yourself is so simple, there really shouldn’t be any need to pay anyone to do it for you.
If you are in touch with someone asking you for payment, chances are they contacted you directly. Don’t feel obligated to hire them. If you have already contracted with them, be aware that your state may have laws in place to limit the amount of money they can charge for their services (e.g. max 10% of the total value). For more information, please be sure to contact the office of your state treasury.
Can I Claim Someone Else’s Unclaimed Property?
It depends on what is meant by that. Most states allow third parties to assist in the search for unclaimed property and as an ‘investigator’ you may be entitled to a fee. Be sure to check with your local state treasury to verify requirements as they apply to you.
On the other hand, if the question is whether you can search for unclaimed property belonging to persons who are related to you, that is actually quite common. Specifically, unclaimed property is often linked to deceased individuals and if you are one of their heirs, you can certainly contact the state to find out how to initiate a claim.
Where Can I Search For Unclaimed Property?
Most jurisdictions have streamlined the process to search for and claim unclaimed property.
Typically, you can initiate a claim directly on their website. Just so you know, you may be asked to provide documentation to prove your identity.
Here’s a table listing government websites you can use to find your unclaimed property.
*Note that government websites usually include .gov as a domain extension. A few state governments have contracted with private companies to outsource some of this work and do not include .gov but in those cases you can usually still call state officials to verify.
What Happens To Unclaimed Property If Nobody Claims It?
Typically, it continues to be accounted for in state records. However, physical property such as the contents of safe deposit boxes may be auctioned off eventually. The rules vary from state to state.
