Can You Claim Unclaimed Money From Deceased Relatives?

Relatives can often claim unclaimed money belonging to a deceased family member. This money, which can include forgotten bank accounts, uncashed checks, insurance payouts, or utility deposits, is held by state governments until rightful heirs come forward. Each state operates a program to safeguard these assets.

Discovering Unclaimed Funds

The first step in recovering assets from a deceased relative involves searching for any unclaimed funds they may have left behind. Each state maintains its own unclaimed property program, typically managed by the state treasury or comptroller’s office, which holds these assets. Searching these state databases is a primary method for discovery. It is advisable to search in any state where the deceased person lived, worked, or conducted significant financial transactions.

A consolidated resource for this search is MissingMoney.com, a free website endorsed by the National Association of Unclaimed Property Administrators (NAUPA). This portal allows for a simultaneous search across most participating states, simplifying the initial discovery process. While MissingMoney.com provides a broad overview, directly checking individual state unclaimed property websites can sometimes yield more comprehensive results or offer additional search functionalities.

Beyond state-held property, other avenues exist for locating unclaimed funds. For instance, the Pension Benefit Guaranty Corporation (PBGC) maintains a searchable database for unclaimed pension benefits from private-sector defined benefit plans that were terminated. Additionally, uncashed insurance policies, forgotten safe deposit box contents, and even old stock certificates can represent unclaimed assets.

Assembling Claim Documentation

Once potential unclaimed funds are identified, gathering the correct documentation is essential before submitting a claim. Claimants must provide proof of the deceased’s identity and passing, as well as establish their own identity and legal right to the funds. A certified death certificate for the deceased is universally required, along with their full legal name, last known address, and Social Security number. These details help confirm the property belonged to the decedent and connect it to their records.

Claimants must also verify their own identity. This typically involves submitting a government-issued photo identification, such as a driver’s license or passport, and proof of current mailing address. Establishing the claimant’s relationship to the deceased and their legal authority to claim the funds is important.

If the deceased had a Last Will and Testament, Letters Testamentary, issued by a probate court, grant the named executor the legal authority to manage the estate and claim assets. Conversely, if the deceased passed away without a will, a court-appointed administrator would obtain Letters of Administration, which confer similar authority to handle the estate according to state intestacy laws. In situations where formal probate is not required, such as for smaller estates, an Affidavit of Heirship or a court order determining heirship may be necessary to prove the claimant’s legal standing as an heir. For assets with direct beneficiaries, like life insurance policies, proof of beneficiary status is usually sufficient. Specific documentation requirements can vary based on the state and the value or type of the unclaimed property.

Navigating the Claim Submission Process

With all necessary documentation assembled, the next step involves submitting the claim to the appropriate state unclaimed property division. The process typically begins by initiating a claim, often through an online portal on the state’s unclaimed property website or by downloading and mailing a physical claim form. Claimants must accurately complete the submission fields, providing information that directly correlates with the documentation already gathered.

Once the form is filled out, the prepared documentation, such as the certified death certificate and letters of authority, must be attached. Many states now allow for online uploading of these documents, which can expedite the process. Some claims may require notarization of the claimant’s signature on the form, particularly for higher value claims, to verify identity and intent. After submission, a confirmation, often with a tracking number, is usually provided, allowing claimants to monitor the status of their claim online.

Processing times vary, ranging from an average of 30 to 90 days for straightforward cash claims. More complex claims, such as those involving heirs, multiple owners, or securities, can take longer, potentially up to 180 days or even more if extensive research into corporate activity is required for securities. State agencies may request additional information during this period to validate the claim, so providing complete and accurate initial submissions is important.

Managing Disbursed Funds

Upon successful approval and disbursement, the handling of the reclaimed funds depends on who submitted the claim. If an executor or administrator claimed the money, it generally becomes part of the deceased person’s estate. These funds are then distributed according to the deceased’s Last Will and Testament or, if no will exists, by the state’s intestacy laws. This distribution ensures the assets pass to the rightful heirs as legally designated.

Distributing funds to multiple heirs requires careful adherence to legal requirements, often necessitating the establishment of an estate bank account. Any interest earned on the property while it was held by the state may be subject to income tax. Certain types of unclaimed property, such as capital gains from stocks, can also be taxable. Claimants should consult with a qualified tax professional to understand any potential tax implications specific to their situation. This guidance ensures compliance with tax laws and proper reporting of any taxable earnings. Its original source and any accrued earnings can affect tax obligations for the estate or the recipients.