Receiving an inheritance, whether expected or unexpected, can significantly improve your financial outlook.
However, through poor oversight or lack of planning, an inheritance could become temporarily displaced. You might have unclaimed money from deceased relatives waiting for you without even knowing it. But who can claim this unclaimed money? In this comprehensive guide, we’ll explore the eligibility, process, and steps to take to recover unclaimed assets from deceased relatives.
Understanding Unclaimed Money from Deceased Relatives
Unclaimed money refers to assets or funds that have not been claimed by the rightful owner for an extended period. These assets can include bank accounts, real estate, vehicles, certificates of deposit, bonds, stocks, retirement accounts, insurance policies, annuities, contents from safe deposit boxes, royalties, and utility deposits. When the owner passes away, these assets may go unclaimed if the beneficiaries are unaware of their existence.
Who Can Claim Unclaimed Money?
The short answer is that beneficiaries and heirs of the deceased can claim unclaimed money. Here are the primary categories of people who can claim unclaimed assets:
1. Named Beneficiaries
If you are named as a beneficiary on an asset, such as a life insurance policy, 401(k) plan, IRA, or payable-on-death account, you can automatically claim these assets. You’ll need to provide proof of identity and a copy of the death certificate to access the funds.
2. Legal Heirs
In cases where no beneficiary is named, the unclaimed assets pass to the legal heirs under state inheritance laws. Legal heirs can include the spouse, children, parents, siblings, or other relatives of the deceased. The exact order of inheritance is determined by state law.
3. Executors and Administrators
If you are the executor or administrator of the deceased’s estate, you have the authority to claim unclaimed assets on behalf of the estate. This often involves gathering documentation and navigating legal processes to ensure the assets are distributed according to the will or state laws of intestacy.
Steps to Claim Unclaimed Money from Deceased Relatives
If you suspect that you have unclaimed money from deceased relatives, follow these steps to track it down and claim it:
1. Make an Inventory
Start by listing the types of assets you believe may be unclaimed. This can include bank accounts, real estate, insurance policies, retirement plans, investment accounts, and other assets.
2. Search Online Databases
Several online resources can help you locate unclaimed assets. Key websites include:
To know how to find the unclaimed property, here you have our guide: How to Find and Claim Unclaimed Property.
3. Contact State and Local Agencies
Check with your state’s unclaimed property office, typically part of the state treasury department. You can also review local property tax records for any real estate or vehicles that may have belonged to your deceased relative.
4. Submit a Claim
Once you locate unclaimed assets, follow the state’s process for submitting a claim. This usually involves filling out a claim form and providing documentation such as a death certificate, proof of identity, and proof of relationship to the deceased.
Legal Considerations
Understanding the legal framework surrounding unclaimed assets is crucial. Here are a few key points to consider:
No Time Limit to Claim
Most states do not impose a time limit for claiming unclaimed property. This means you or your heirs can claim it at any time, even decades later.
Heirs Can Claim Property
If the original owner is deceased, heirs can claim the property with the necessary documentation. This may require legal proof of heirship, such as a death certificate and an affidavit of heirship.
Safe and Secure
States are responsible for safeguarding unclaimed property, ensuring it remains safe until claimed by the rightful owner or heirs.
Preventing Unclaimed Property
To avoid future unclaimed property situations, consider discussing estate plans with your relatives. Ensure that all assets have named beneficiaries and that important documents are accessible. Working with a financial advisor can also help in creating a comprehensive estate plan to manage assets effectively.
Unclaimed money from deceased relatives can be a significant financial resource if properly claimed. By understanding who can claim these assets and the steps involved, you can ensure that your inheritance is not left unclaimed. If you believe you have unclaimed assets, take the necessary steps to search for and claim them. For more guidance on managing your inheritance, consider consulting with a financial advisor.
Don’t let unclaimed property remain in the hands of the state. Take action today to reclaim what is rightfully yours and ensure your financial future is secure.