How to Reclaim Abandoned Assets Seized by States
State governments collectively seized more than $4.7 billion from 117 million "abandoned" U.S. bank accounts, pension accounts, safe deposit boxes, stocks and savings bonds last year, according to the National Association of Unclaimed Property Administrators. In total, this group, which represents state treasurers' offices, estimates approximately $33 billion of unclaimed money sits in various states' treasuries, and these states are earning the interest that rightfully belongs to individual citizens or their heirs. Only a fraction of seized assets are ever reclaimed. There's a good chance some of these assets could be yours, and you can reclaim them.
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Instructions
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Find out whether you or a relative has assets seized by states by consulting the websites listed in the Resources section of this article. Many people don't even realize they are missing their money or valuables. Under current law, any accounts held in U.S. banks or other financial institutions become the property of the state if they have been dormant for 3 years. Congress enacted the law to protect consumers' inactive accounts from being eaten up by the many fees the banks charge each year. However, this law has become a windfall for state treasuries, which can use the money until it is reclaimed.
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Understand the process for recovering seized assets can be difficult, especially if assets belonged to a deceased relative, even if you are the rightful heir. The paperwork can be formidable. When filing a claim with the state, you will need the number associated with the account provided on the state's unclaimed property list. You can download the claim forms from each state's website or write to the state address provided on the website to receive the form by mail.
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Claim your own assets by submitting a completed, signed affirmation statement (claiming the assets as your own). Provide a current photo ID of yourself (and any joint account holder). Provide your Social Security number and that of anyone else listed on the account. You'll also have to show proof that you were associated with the last known address listed on the account as well as proof from the institution where the account was held that you are the owner. You may be required to have all the information you send notarized. You also may have to provide additional information once the state receives your claim, and it can take months to complete the process.
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Be prepared for a longer and more complicated claim process if you are reclaiming seized assets as an heir, executor or trustee of a deceased person. You'll have to provide proof of your relationship with the deceased, death certificate, will or trust document, ID of the deceased, and all the other information listed in step 3 for yourself and the deceased. In some cases, you may need the assistance of an attorney to move the claim along. The requirements for each state are provided on each state's website, usually from the state controller's office page.
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Begin the process as quickly as you can. Even though the states are supposed to act as custodians for these assets, some states sell the assets off soon after receiving them, especially if they are jewelry, collectibles or other noncash assets from safe deposit boxes. Some states also are stepping up the seizure process, demanding that financial institutions turn over the unclaimed assets sooner than the standard 3-year period.
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Tips & Warnings
Check the websites in the Resources section often if you suspect there are seized assets. The lists are updated twice a year, but there are backlogs in many states, so there may be a delay in listing seized assets.
You also can check the website of any state you may suspect of having seized assets to which you are entitled. Look under "Unclaimed assets."
States are required to make a good faith effort to contact holders of seized accounts after receiving the assets, but many people report they did not know about the missing assets, even though they still resided at the address listed on the accounts. Don't wait for a state office to contact you.
