If you ever get that weird feeling that you have money lying around and you do not know where you placed it, then you are probably right. When you call your bank and they leave you on hold for hours, you might have the urge to cry. You do not want to crack open your piggy bank yet. Today might be your lucky day.
According to the National Association of Unclaimed Property Administrators (NAUPA), one in seven people across the nation have forgotten money that is waiting to be claimed, or unclaimed money. The United States federal government currently has billions of dollars in unclaimed money or properties. You might be one of the fortunate people who has unclaimed money that you do not know about.
Before you rush to buy a new car or book a flight to the Bahamas, you should find out what unclaimed money is. Additionally, you should know where unclaimed money can come from. This article will tell you all about unclaimed money and its types.
What is Unclaimed Money?
You are definitely confused now, since “unclaimed money” is not a familiar term for most people. It is not free money, but it is just as great as free money. Unclaimed money or unclaimed property refers to any funds or properties that inactively reside in financial institutions or agencies for a year or more. Simply put, if you are the person who spreads out their investments, then you will need to look through all of your financial assets. For money and property to be considered unclaimed, the property must remain inactive for a certain period of time. The inactivity period is also known as the dormancy period. Once the dormancy period passes, the state has the legal right to take over the property or funds.
Fortunately, you will be able to save yourself from a bunch of paperwork. The National Association of Unclaimed Property Administrators (NAUPA) offers a search engine that will help you locate unclaimed money.
What are the Different Types of Unclaimed Money?
There are different types of unclaimed money. This means that you will be able to find unclaimed money in different financial institutions. Many people tend to forget about every single financial property or account, especially if they have a widespread portfolio. You can find unclaimed money in the following entities:
- From Your State
- From Your Employer
- Through Insurance
- From Tax Refunds
- Through Banking and Investments
- From a Bankruptcy
- Through International Unclaimed Money
- From Undelivered Tax Refund Checks
1. Unclaimed Money in Your State
As mentioned in the title, it sounds like the state is holding your money hostage. But, that is not the case. More often than not, businesses forward money to state-run agencies, when they are unable to reach the owner. In that case, the state stores unclaimed financial properties and accounts that come from insurance policies, your state government, or bank accounts.
2. Money from Employers
Your boss did not rip you off, even if your last day did not go so well. You can receive two types of unclaimed money from your employer: unpaid wages or pensions from previous employers. In terms of unpaid wages, if your employer broke any labor laws, then the Department of Labor (DoL) may be able to reclaim your back wages. On the other hand, you can find pensions from previous employers through businesses that went out of business or when their structured pension plans expired. Simply put, this means that if the company you worked for went out of business or ended a pension plan, then you may be able to receive money out of it.
3. Money from Insurance
When it comes to unclaimed insurance funds, you will find that there are also two forms of insurance funds. These two types are: VA Life Insurance Funds or FHA-Insurance Refunds. If you are a veteran that has served our country, then you have the chance to find unclaimed insurance funds from the United States Department of Veterans Affairs (VA) website. You can find funds from the VA as a present or former policyholder, or if you are one of their beneficiaries.
But, make sure that you keep in mind that the VA website does not include any funds that are from the following insurance policies: Service-Members’ Group Life Insurance (SGLI) or having Veterans’ Group Life Insurance (VGLI) policies from 1965 until now.
Additionally, you might be able to find a refund with the Federal Housing Administration or FHA-Insurance Refunds. The only condition is that you must have an FHA-insured mortgage. You will find these refunds available through the United States Department of Housing and Urban Development (HUD).
4. Money from Tax Refunds
This is actually very common, where you file your taxes and find out that the federal government owes you a tax refund. The Internal Revenue Service (IRS) might owe you money, in the case that you did not claim your tax refund or if you did not receive your tax refund.
5. Money from Banking and Investments
There is always a possibility that an investment does not pan out. In the case that it happened to you, then you should not feel too bad. If you are one of those people who like to take risks and you decide to invest all your money, then you might be able to find unclaimed money. You will find that there are different types of unclaimed money from banking and investments, which are: bank failures, credit union failures, and saving bonds.
The first type of unclaimed money is through bank failures. If a financial institution or a bank fails, then you might be in luck and find a hidden treasure chest from the bank failure. (It is not really a hidden treasure, but it is unclaimed money). If you want to know whether or not a financial institution has failed, then you can find out through the Federal Deposit Insurance Corporation (FDIC).
As for the second type of unclaimed money from banking and investment, you can find it through credit union failures. The Securities and Exchange Commission (SEC) provides a list of enforcement cases, which shows you whether an individual or entity owes their investors money. Finally, you can find unclaimed money through savings bonds. If you had a savings bond that stopped earning interest, then you will find unclaimed money waiting for you. You can find uncashed savings bonds that are matured through the Treasury Hunt website.
6. Unclaimed Money from a Bankruptcy
You can receive unclaimed money from a bankruptcy, as well. A bankruptcy creditor is an individual who needs money from a business owner that has declared bankruptcy. There are several instances that the business owner that declared bankruptcy owes money to the creditors and it remains unclaimed. Additionally, there is a possibility that the bankruptcy court did not distribute the funds, making it unclaimed.
7. International Unclaimed Money
As for international unclaimed money, U.S. nationals have the possibility to find money that foreign governments owe them. If you faced any property loss as a United States citizen, then you might find unclaimed money.
8. Undelivered Federal Tax Refund Checks
If you managed to move away without informing the IRS or the United States Postal Service (USPS), then you might not have received your refund check yet. The IRS stores the refunds in storage until you decide to claim them. If you want to find out whether you have unclaimed money in the form of tax refunds, then you can find out through the IRS website. Through the website, you will find a search engine that will tell you everything you need to know about your tax refund.
But, there is a possibility that you are eligible for a federal tax refund and you did not manage to file a return. In this case, the refund is unclaimed money. You might not have filed a return, but you can still gain something when you do file a return. If federal taxes are taken out of your wages or if you are eligible for the Earned Income Tax Credit (EITC), then you can qualify for undelivered federal tax refund checks.
Additionally, there is a possibility that your salary lies below the filing requirement. This might be why you did not file a tax return. But, you still have the chance to file a return within the three year deadline to receive your refund.
How Can You Track Unclaimed Money?
State treasurers and other state officials are responsible for managing and administering programs for unclaimed properties. These programs created efficient and effective methods to locate owners of the unclaimed money. Each state government can use different methods to find and reach owners of unclaimed properties and accounts. These methods include: outreach programs, official government websites, public data, and the national database. Through the database, states provide online searches for all owners to find out whether they have unclaimed properties or not.
Additionally, states can cross-check public databases to look for owners and reach out to them. You might find that your state orchestrates public outreach events to help individuals look for any unclaimed financial accounts or properties. This way, you can find out if you have unclaimed money online and offline.
Oftentimes, states use the national database to find unclaimed properties and their owners. The national database provides everyone access to look for unclaimed money in several states at the same time. You will be able to find unclaimed financial accounts or properties through the national database, as well as the contact information for the officials who are responsible for your unclaimed money in the state you live in.
Conclusion
Overall, unclaimed money is inactive financial accounts or properties that the state took over after a certain period of time. You can receive unclaimed money through different ways. These ways are as follows:
- From Your State
- From Your Employer
- Through Insurance
- From Tax Refunds
- Through Banking and Investments
- From a Bankruptcy
- Through International Unclaimed Money
- From Undelivered Tax Refund Checks
You will be able to find out if you have unclaimed money through different means. Thanks to state governments, you will be able to find unclaimed money from online databases, public outreach programs, and official government websites.
