Unclaimed Money from Deceased Relatives – What You Need to Know

Unclaimed money from deceased relatives includes bank accounts, insurance payouts, stocks, and retirement funds that remain unclaimed due to missing records or outdated information. These funds are held by state agencies or financial institutions until a legal heir claims them. Searching databases, verifying ownership, and submitting a claim are key steps to recover these assets.

What is Unclaimed Money from Deceased Relatives?

Unclaimed money from deceased relatives refers to assets or funds left behind by a deceased person that have not been claimed by their rightful heirs or beneficiaries. This money typically consists of dormant bank accounts, insurance payouts, uncashed checks, stocks, bonds, and other financial assets that have not been transferred after the owner’s death.

According to the National Association of Unclaimed Property Administrators (NAUPA), state governments hold over $49 billion in unclaimed funds, with a significant portion originating from deceased individuals. These funds remain in state custody until a legal heir steps forward to claim them.

Unclaimed money often goes unnoticed due to missing documentation, outdated beneficiary information, or a lack of awareness among heirs. Financial institutions and government agencies typically attempt to contact the rightful owners, but if they fail, the assets are transferred to the state’s unclaimed property division.

How Can I Find Unclaimed Money from Deceased Relatives?

You can find unclaimed money from deceased relatives by searching official databases and contacting relevant agencies.

1. State Unclaimed Property Websites – Visit MissingMoney.com or your state’s unclaimed property office website to search by name.
2. National Association of Unclaimed Property Administrators (NAUPA) – Check the NAUPA website for state-by-state search options.
3. U.S. Treasury and IRS – Search for unclaimed savings bonds at TreasuryHunt.gov and unclaimed tax refunds at IRS.gov.
4. Pension Benefit Guaranty Corporation (PBGC) – Check for unclaimed retirement benefits at pbgc.gov.
5. Life Insurance Policy Locator – Use the National Association of Insurance Commissioners (NAIC) to search for unclaimed life insurance benefits.
6. Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) – Search for unclaimed deposits from closed banks at fdic.gov and credit unions at ncua.gov.
7. Court and Probate Records – Contact local probate courts to check for unclaimed inheritances.
8. Employer and Retirement Accounts – Search for lost 401(k) accounts using the Department of Labor’s Abandoned Plan Database.

Use legal documents such as wills, death certificates, and proof of relationship to claim the funds.

What Are the Steps to Claim Unclaimed Money from Deceased Relatives?

Claiming unclaimed money from a deceased relative requires verifying ownership, gathering legal documents, and submitting a claim to the appropriate agency. The process varies by state and institution but generally follows these key steps:

1.       Search for Unclaimed Property – Visit official sources such as MissingMoney.com, NAUPA, or state unclaimed property websites. Search using the deceased relative’s name and last known address to locate any unclaimed assets.
2.       Verify Ownership – Confirm that the unclaimed money belongs to your deceased relative by checking details like the name, previous addresses, and Social Security number. Some databases provide additional information about the source of the funds.
3.       Gather Required Documents – Collect essential documents to prove your claim:

•       Death Certificate – Confirms the person has passed away.
•       Proof of Relationship – Birth certificates, marriage certificates, or a will showing your connection to the deceased.
•       Legal Authority – If you are the executor or administrator of the estate, provide court-issued letters of administration or an order naming you as the rightful claimant.

4.       Complete a Claim Form – Obtain and fill out the official claim form from the state’s unclaimed property office or the agency holding the funds. Some states allow online submission, while others require a printed application.
5.       Submit the Claim – Send the completed claim form along with all supporting documents through the online portal or by mail to the appropriate state treasury office, financial institution, or agency.
6.       Wait for Processing – The agency will review your claim, verify your documents, and check for any additional requirements. Processing time varies, but it typically takes a few weeks to several months, depending on the complexity of the claim.
7.       Receive Payment – If the claim is approved, the agency will release the funds through direct deposit or check, depending on the method they use for payouts.

What Documentation Is Required to Claim Unclaimed Money?

To claim unclaimed money from a deceased relative, you must provide documents that verify your identity, relationship to the deceased, and legal authority to claim the funds. The required documents include:

1. Proof of Identity – A government-issued ID such as a driver’s license, passport, or state ID to confirm your identity.
2. Death Certificate – A certified copy of the deceased person’s death certificate to prove they have passed away.
3. Proof of Relationship – Documents showing your connection to the deceased, such as:

• Birth certificate (for children or parents of the deceased).
• Marriage certificate (for spouses).
• Will or trust documents (if named as a beneficiary).

• Letters of Administration (court-issued document proving you have legal authority).
• Probate court order (if applicable).
• Affidavit of Heirship (if probate was not required but you are a legal heir).

• Bank statements (for unclaimed bank accounts).
• Insurance policy documents (for life insurance payouts).
• Stock or bond certificates (for unclaimed investments).

All documents must be clear copies or certified originals, as required by the agency handling the claim.

Are There State-Specific Processes for Claiming Unclaimed Money?

Yes, each state has its own process for claiming unclaimed money, including different requirements, dormancy periods, and claim submission methods.

1. State Unclaimed Property Websites – Most states have an official unclaimed property division where you can search and file claims. Use MissingMoney.com or NAUPA to find the correct state website.
2. Dormancy Periods – States have different dormancy periods before funds are considered unclaimed, typically 1 to 5 years, depending on the asset type.
3. Claim Submission Methods – Some states allow online claims, while others require mail-in forms with notarized documents.
4. Required Documentation – While most states require proof of identity, death certificate, and proof of relationship, some may also require notarized affidavits, court orders, or additional legal documents.
5. Processing Times – The time to process a claim varies by state. Some states process claims within a few weeks, while others take several months, especially if probate is involved.

Check your state’s unclaimed property office for specific guidelines and requirements.

When Should I Seek Professional Help for Unclaimed Money?

You should seek professional help for unclaimed money when the claim process is complex, requires legal intervention, or involves large sums. Common situations include:

1. Complicated Probate Cases – If the estate was never settled, or there are multiple heirs disputing ownership, a probate attorney can help navigate the legal process.
2. Missing or Insufficient Documentation – When key documents like a will, trust, or proof of relationship are unavailable, a legal professional can assist in obtaining or proving eligibility.
3. Large or High-Value Claims – If the unclaimed assets involve substantial funds, stocks, or real estate, consulting an attorney or financial advisor ensures proper handling.
4. Multiple State Claims – If the deceased had assets in multiple states, a professional can help manage claims across different jurisdictions.
5. Tax Implications – A CPA or tax attorney can provide guidance if the unclaimed money affects estate taxes or personal tax liabilities.
6. Dealing with Government Agencies or Insurance Companies – When agencies delay, deny, or complicate the claim process, a legal expert can help resolve disputes.

Hiring an attorney, estate planner, or unclaimed property specialist may speed up the process and reduce legal risks.

What Happens to Unclaimed Money If Not Claimed?

Unclaimed money remains under the custody of state or federal agencies until it is claimed by the rightful owner or heirs. The outcome depends on the laws governing unclaimed property:

1. Transferred to State Unclaimed Property Funds – After the dormancy period (typically 1 to 5 years), funds are transferred to the state’s unclaimed property office, where they remain available for claim indefinitely in most states.
2. Held Indefinitely by Some States – Most states do not take ownership of the funds, meaning heirs can claim the money at any time. Check state laws through NAUPA.
3. Escheatment to the State – In some cases, particularly for abandoned real estate or some financial accounts, the state may take permanent ownership if no claim is made for several decades.
4. Use by the State – While the money is held, states often use it for public services or state budgets, but it remains available for rightful claimants.
5. Federal Funds Remain Accessible – Federal agencies such as the IRS, Social Security Administration, and U.S. Treasury continue to hold unclaimed funds, which can be claimed at any time.

Unclaimed money does not automatically go to other heirs or beneficiaries without a legal claim. Checking state and federal databases regularly ensures rightful owners do not lose access to these funds.

How Should I Manage Inherited Unclaimed Money?

Managing inherited unclaimed money requires careful planning to ensure financial stability, legal compliance, and tax efficiency. Following these steps helps maximize the benefits and avoid unnecessary complications:

1. Confirm Ownership – Verify that the money legally belongs to you by checking the official claim approval and confirming that all required legal documents are in place.
2. Understand Tax Implications – Consult a CPA or tax attorney to determine if the inheritance is subject to estate taxes, capital gains taxes, or income tax obligations. Different types of inherited assets may have specific tax treatments.
3. Deposit the Funds Securely – Open a secure bank or investment account to store the funds safely. Keeping large sums in cash is risky, and depositing the money in an FDIC-insured account ensures security.
4. Create a Financial Plan – Consider investment options like stocks, bonds, mutual funds, or real estate to grow the inheritance over time. A financial advisor can help structure a plan that aligns with long-term goals.
5. Settle Outstanding Debts – Use part of the inheritance to pay off high-interest debts, such as credit cards, loans, or medical bills, to reduce financial burden and improve credit standing.
6. Update Estate Planning Documents – Review and update your will, trusts, and beneficiary designations to reflect the newly acquired assets. This ensures that the money is distributed according to your wishes in the future.
7. Consider Charitable Contributions – Donating a portion of the funds to charities or causes can provide tax benefits while supporting meaningful initiatives.

Properly managing inherited unclaimed money ensures financial security, tax efficiency, and legal protection for both you and your heirs.

How Can I Prevent Unclaimed Money Through Estate Planning?

Preventing unclaimed money through estate planning involves organizing assets, keeping documents updated, and ensuring heirs can access funds easily. By taking proactive steps, you can ensure that your money and property are properly transferred to your beneficiaries without unnecessary delays.

1. Create a Will or Trust – A legally valid will or trust ensures that your assets are distributed according to your wishes. A trust can help bypass probate, reducing delays and preventing funds from being lost in the legal process. Without a clear estate plan, money may go unclaimed if heirs are unaware of accounts or property.
2. Keep Beneficiary Designations Updated – Regularly review and update beneficiary information for bank accounts, retirement funds, insurance policies, and investment accounts. Failing to update designations can lead to outdated information, preventing rightful heirs from accessing the funds.
3. Consolidate Financial Accounts – Reducing the number of bank accounts, investment portfolios, and insurance policies makes asset tracking easier for heirs. Too many scattered accounts increase the risk of forgotten or unclaimed funds.
4. Maintain a Detailed Asset List – Document all financial accounts, insurance policies, pension plans, stocks, real estate holdings, and other assets along with relevant account numbers, contact details, and institution names. Store this list in a secure but accessible place and inform a trusted family member or executor.
5. Inform a Trusted Individual – Make sure a spouse, child, attorney, or executor knows where your financial records and estate planning documents are kept. Lack of communication is a common reason money goes unclaimed after death.
6. Utilize Payable-on-Death (POD) and Transfer-on-Death (TOD) Accounts – Setting up POD or TOD designations for bank accounts, brokerage accounts, and real estate allows direct transfers to beneficiaries without requiring probate. This ensures that money is passed on immediately after death.
7. Keep Contact Information Updated – Notify banks, insurance companies, government agencies, and financial institutions of any changes in address, phone number, or email to prevent miscommunication that could lead to unclaimed funds.
8. Regularly Review and Update Your Estate Plan – Reevaluate your estate plan every few years or whenever significant life events occur, such as marriage, divorce, birth of a child, death of a beneficiary, or changes in financial status. Keeping documents up to date ensures that your wishes are carried out correctly.

Proper estate planning not only helps prevent assets from becoming unclaimed but also ensures a smooth transfer of wealth to your beneficiaries without legal complications.