Unclaimed property, often referred to as abandoned property, encompasses financial assets or accounts within financial institutions or companies that have seen no activity or contact with the owner for a specified period.
This article will explain what unclaimed property checks are, how they come to be, and the steps you can take to claim them.
What Exactly is Unclaimed Property?
Unclaimed property refers to any financial asset that has remained inactive or without contact from the owner for a certain period, known as the dormancy period. Once this period elapses, the property is considered unclaimed and, by law, must be turned over to the state. Unclaimed property can be either intangible, such as uncashed paychecks or stocks, or tangible, like the contents of safe deposit boxes.
When Does Property Become “Unclaimed”?
Property becomes unclaimed after a designated dormancy period with no activity or contact from the owner. This period varies depending on the type of property and state regulations but generally ranges from one to five years. Once the dormancy period expires, the financial institution or company holding the property is required to report it to the state’s unclaimed property office.
Types of Unclaimed Property
Unclaimed property comes in various forms. Here are some of the most common types:
- Checking or savings accounts
- Stocks
- Uncashed dividends or payroll checks
- Refunds
- Traveler’s checks
- Trust distributions
- Unredeemed money orders or gift certificates (in some states)
- Certificates of deposit
- Customer overpayments
- Utility security deposits
- Mineral royalty payments
- Contents of safe deposit boxes
- Insurance payments or refunds and life insurance policies
- Annuities
What is an Unclaimed Property Check?
An unclaimed property check is a payment issued by a state’s unclaimed property office to the rightful owner of unclaimed property. When a financial institution or business reports unclaimed property to the state, the state takes custody of the assets. If you successfully claim the property, the state will issue you an unclaimed property check, representing the value of the unclaimed assets.
How Unclaimed Property Checks are Generated
Unclaimed property checks are generated through a series of steps:
- Reporting: Financial institutions and businesses report unclaimed property to the state after the dormancy period expires.
- Collection: The state’s unclaimed property office collects and safeguards these assets until claimed by the rightful owner.
- Claim Submission: Owners or heirs submit claims to the unclaimed property office, providing necessary documentation to prove their ownership.
- Verification: The state verifies the claim and documentation to ensure the claimant is the rightful owner.
- Issuance: Once the claim is approved, the state issues an unclaimed property check to the claimant.
Steps to Claim Unclaimed Property
If you believe you have unclaimed property, here’s how you can claim it:
- Search for Unclaimed Property: Use state and federal databases to search for unclaimed property in your name or the name of a deceased relative.
- Submit a Claim: File a claim with the appropriate state or federal agency, providing necessary documentation to prove your identity and your right to the property.
- Verification: The unclaimed property office will review and verify your claim and documentation.
- Approval and Issuance: If your claim is approved, the state will issue an unclaimed property check, representing the value of the unclaimed assets.
- Receive Your Check: The check is typically mailed to the address provided in your claim form.
Why You Should Check for Unclaimed Property
Checking for unclaimed property can help you recover assets that you may have forgotten about or never knew existed. Many people are unaware of the unclaimed property they have, which can result from old bank accounts, uncashed checks, insurance benefits, and more. Regularly checking for unclaimed property ensures that you can reclaim what is rightfully yours.
For more detailed information on unclaimed property and how to navigate the claim process, check out these helpful articles:
- Is Unclaimed Property a Trap?
- Is Unclaimed Property Legit?
- How to Claim Unclaimed Property
- Who Can Claim Unclaimed Money from Deceased Relatives?
An unclaimed property check is a means for rightful owners to recover lost or forgotten assets. Understanding what unclaimed property is, how it becomes unclaimed, and the process to claim it can help you ensure that you reclaim any financial assets that belong to you. Regularly checking state and federal databases for unclaimed property can help you stay on top of any assets that may be waiting for you to claim.