Whether it’s finding $20 in your jeans, scoring a sweet bonus at work, or opening up that birthday card from grandma, getting unexpected money is always a blessing. But what if I told you that more than 30 million Americans have unclaimed money and assets that they either never knew existed, or simply forgot about?
There’s an estimated $70 billion, yes- billion dollars in unclaimed funds in the U.S., and approximately 1 in 7 folks are entitled to this cash. Could you be one of them?
If there’s unclaimed money out there in your name, you’re entitled to it! Today, we’re going to show you the process of how to search for missing money, and how to claim any lost cash that you might be entitled to. The whole process takes less than 5 minutes, so there’s no excuse for delaying!
What is unclaimed money?
Unclaimed money is cash or property that has been left inactive or unattended for an extended period of time. This could be like a refund check that was never cashed, some old stock that you forgot about, or perhaps an uncashed paycheck. If the people or entity currently holding those funds cannot reach you within a certain time frame, the money must be turned over to the state.
Unclaimed funds can be physical property, for example, lockbox contents from an old apartment, or funds from bank accounts, rebates, uncashed paychecks, tax returns, life insurance benefits, customer overpayments, and more! Basically, if a party owes you money and is unable to reach you, those assets flow into the unclaimed money system, which you must then reclaim through your state’s program.
Missing money example:
Let’s say you cancel your cable subscription and move to a new house. In canceling your service, the cable company might owe you a tiny refund – maybe for some retroactive pro-rata billing, or a modem refund fee or something.
Now let’s say the cable company tried reaching out to you, but the address they have on file is your old one. And let’s say they also had the wrong cell number and email for you too… How can they give you a refund when they can’t find you?
After several attempts to give you a refund, the cable company gives up… They hold the money owed for many years (they legally can’t just keep it), and then finally after years of holding that cash, they turn it over to the state. That gets it off their balance sheet.
The state holds that money, and waits for you to “find it.”
How do people just forget where their money is?!
I know, it’s confusing to think that people just disregard money like this. But, there are many reasons why funds might remain unclaimed for an extended period of time.
For example, someone may have an old 401k account from a previous employer they never knew about. Perhaps it only has $40 in it because they only worked there for 2 weeks. Or, maybe someone could be owed a life insurance benefit, and the company may not have had the contact information available to reach them.
Often, people who have moved a lot in the past are likely to have unclaimed money waiting for them. If you didn’t leave a forwarding address, a check could have easily been mailed to the wrong place, never ending up in your hands. It’s not always a case of being forgetful. Some folks never knew they were entitled to this money in the first place!
How to Search for Missing Unclaimed Money
OK, are you ready to search and see if YOU have any unclaimed money? It’s really easy and kind of exciting – kind of like treasure hunting!!!
The quickest way to search for unclaimed funds is to search on your state-specific website. NAUPA has a list of links to every state’s site here. Just scroll down, select your state, and enter your name (or business name if you’ve owned a business in the past!).
Next, it will then reveal all the unclaimed accounts and assets associated with your search.
Remember to search every state you have lived in or conducted business in. Each state maintains its own database, so you need to check every one separately. You should also search your maiden name if you have been married or underwent a name change!
There’s a very cool aggregate website, MissingMoney.com. It searches most states, but the individual states have a more thorough search capability.
It’s also 100% free to search for unclaimed funds, and totally legitimate! Don’t get tricked into paying anything for searches – this is a free service offered by each state’s controller’s office.
Even if you don’t find anything now, these databases are updated often, so you’ll likely want to add this to your yearly financial to-do list.
How to Claim Missing Money
So you’ve found unclaimed money in your name… Woohoo, drinks are on you tonight! But how do you claim and access that cash?
Well, every state has a slightly different procedure for claiming money, but they are all relatively straightforward. If unclaimed funds show up under your name, there should be a button you can press that says “claim.” Then, follow the prompts on the screen and provide any necessary information.
You’ll likely need to verify your identity using your social security number, driver’s license, or passport. The state wants to know that you’re actually YOU before giving you the cash.
For small owed amounts, the state may have a very simple refund procedure. But if you have a massive amount of unclaimed funds, expect a very thorough identity check!
After they verify who you are and that the claim is legit, they will send you a check or return your assets. This can take as little as 2 days, or some states have a 30-60 day process. The good news is that you’re soon to be reunited with those funds!!
Why it’s important to check for unclaimed money
According to the National Association of Unclaimed Property Administrators, or NAUPA, 1 in 7 people have unclaimed funds waiting for them. While the assets could be worth a few pennies or six figures, the average claim value is $2,080. That’s not chump change!
You don’t want to procrastinate checking for unclaimed funds. If you have money waiting for you, it’s losing value with each year that passes. The cash in that old forgotten savings account isn’t being adjusted for inflation!
Every minute your money sits there, you’re missing out on the opportunity to use it to build wealth. For example, if you invested that $2,080 average claim in broad low-cost index funds, it could be worth $20,930 in 30 years! Every dollar has the potential to grow your wealth in a meaningful way.
Plus, at the end of the day, you are entitled to that money! You earned it, and checking for unclaimed funds is an important way to advocate for yourself and your finances.
What should you do with unclaimed money?
If you’re lucky enough to discover unclaimed cash, what’s the best way to use this money?
Well, if you’re working towards any big financial goals, like saving up a down payment, or working to pay off debt, you can always use this cash to help you reach your money goals more quickly. Or, you could sock it away in a tax-advantaged retirement account like a Roth IRA so that money can grow for your future income needs.
But, if you really don’t know what to do with that cash, be sure to check out the Money Gears. They can provide you with some clarity on what the best financial moves are for your current circumstances.
Blowing your unclaimed money on a new VR headset sounds fun. But it’s a choice that you’ll probs regret later. Be smart with your windfalls! Pay off debt or invest that cash!
The Bottom Line:
If there’s unclaimed money out there with your name on it, now’s the time to search for and claim that cash. Every dollar has the potential to set you up for a more secure financial future, so don’t put this important financial to-do off any longer!
Ps. Bonus points if you search for unclaimed money in your friend’s and family member’s names. Getting them a surprise check is a win, too! They might just buy you an iced cold craft beer to say thanks 😉
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