How to Claim Money From a Closed Bank Account

When a bank account remains inactive for an extended period, funds do not vanish or become profit for the financial institution. Banks are legally obligated to transfer these dormant balances to the state’s unclaimed property division. This process, known as escheatment, protects consumers’ money and keeps it accessible. This article guides readers through locating and claiming money from closed or inactive bank accounts.

Where Unclaimed Bank Account Funds Go

Escheatment is the legal process transferring abandoned financial assets from private entities, like banks, to state government custody. This transfer occurs after a specified dormancy period, typically three to five years, depending on the asset type and state regulations. Its purpose is to protect consumers by preventing financial institutions from retaining these funds indefinitely.

Once escheated, these funds are held by the state treasurer’s office or a similar department, not the original bank. The state acts as a custodian, safeguarding assets until the rightful owner or their heirs claim them. Therefore, your primary contact for dormant funds will be the state’s unclaimed property division, not the original bank.

This process applies to a wide array of financial assets beyond traditional checking or savings accounts. It includes contents from safe deposit boxes, uncashed checks (dividends or payroll), matured certificates of deposit, and money orders. The scope of unclaimed property is broad, encompassing various forms of financial value that may have been overlooked or forgotten.

Searching for Your Funds

To search for unclaimed funds, utilize official state unclaimed property websites. Each state maintains a comprehensive, public database of escheated assets. You can find these by searching online for “[State Name] Unclaimed Property” for any state where you or a deceased relative lived, worked, or conducted financial transactions.

The National Association of Unclaimed Property Administrators (NAUPA), unclaimed.org, is a recommended starting point for a nationwide search. This site provides links to official unclaimed property databases for all U.S. states and territories, streamlining multi-jurisdictional searches.

When searching, enter various identifying information to maximize matches. Include your full current name, any previous names (like maiden names), or common misspellings used on old records. Also, search using past addresses where you resided, as funds may link to where the account was originally opened or last active. If searching for a deceased relative, include their full name and any known previous names or addresses.

Search results typically provide the source of funds, such as the transferring bank or financial institution. While exact monetary amounts are sometimes withheld for security, results often indicate value within a general range (e.g., “under $100” or “over $1,000”). This initial information helps confirm a potential match before proceeding with a formal claim.

Required Information for Claiming

Before initiating a claim for unclaimed funds, gather specific documentation proving your identity and connection to the dormant account. State unclaimed property divisions require this to prevent fraudulent claims and ensure funds return to rightful owners. Preparing these documents in advance can expedite the claim review process.

You will need personal identification, such as a government-issued driver’s license or passport. Proof of your Social Security Number is also required, via your Social Security card or official tax documents. Additionally, proof of current and past addresses is necessary, often satisfied with utility bills, bank statements, or other official mail linking you to the unclaimed property address.

You must demonstrate your direct connection to the funds. This may involve providing the original bank account number, old bank statements, passbooks, or check stubs bearing your name and account details. Any documentation directly linking you to the specific financial institution and account holding the unclaimed funds will strengthen your claim.

If claiming funds for a deceased individual, additional documentation is necessary to establish your legal right to the property. This includes the deceased person’s death certificate and proof of your relationship (e.g., birth certificate, marriage license). You will also need legal documentation proving authority to act on behalf of the estate, such as Letters Testamentary, Letters of Administration, or a Small Estate Affidavit, depending on the estate’s value and jurisdiction.

The Claim Submission Process

After locating potential unclaimed funds and gathering all necessary supporting documentation, formally submit your claim to the state’s unclaimed property division. The submission process varies by state, but most offer convenient methods. Many states provide an online portal to complete the claim form digitally and securely upload scanned copies of your required documents.

Alternatively, some states may require printing, completing, and mailing the claim form with photocopies of supporting documents. Carefully review and follow specific instructions provided by the state’s unclaimed property website for your claim, as requirements can differ based on property type or claimant relationship.

After your claim is submitted, the state typically provides an acknowledgment of receipt, often through email or postal mail. This confirms your claim has entered their review queue. The review period can vary significantly by state, from a few weeks to several months, depending on claim volume and complexity.

During the review, the state may contact you to request additional information or clarification if anything is unclear or missing. Promptly responding to these requests can prevent processing delays. If your claim is approved, funds are typically disbursed via a check mailed to the address provided on your claim form. Keep copies of all submitted documents and any correspondence with the state for your records.