How Does Money Become ?Unclaimed Money?
Escheat Laws are laws that require companies and financial institutions to turn over account owners money after a 3 years of inactivity and after they have not been able to contact the account owner with the contact information on file for an account.
This means peoples bank accounts are being closed, heirs are not receiving inheritance, stocks are being liquidated, safety deposit box contents are being sold all without the unclaimed money account owner even knowing it! This may have even happened to your money!
How to Protect Your Money and Accounts
There are simple administrative things you can do to ensure your money does not end up in the hands of the government listed as unclaimed money.
1. Create and keep a record of ALL companies or institutions that hold your money or pay you money.
Include the following for each record: Company Name, Phone Number and Account Number
- Banks for all checking, savings and safety deposit boxes including accounts you may have opened for your child or children
- investment Companies
- Insurance Companies
- Employers
- Companies with which you have a pension or retirement
- Companies with which you own stock
- Information on CD's and trust funds
- Companies holding Utility deposits and escrow accounts
2. Provide a copy of this record to your executor, spouse and/or heir. This way in the unfortunate case of your death, your family will not be tasked with sorting through your records and possibly loosing money, which you intended to leave to them.
3. Make sure all institutions and companies holding or owing you money have your updated contact information.
You can do this by sending a simple letter to the companies.
Here is a sample letter. To use this letter simply copy and paste the letter into a document. Then fill in the required information and mail it to the company.
((INSERT Date))
((INSERT Company Name))
((INSERT Department You Are Contacting i.e. Customer Service))
((INSERT Company Address))
((INSERT Company City, State & Zip))
RE: Records and Information for Account # ((Insert Account Number))
To Whom It May Concern:
My name is ((INSERT Your Name Here)). I am the owner of the above referenced account.
I would like to verify the contact information on my account is correct and up to date. Please respond via letter stating the information is accurate on your records.
My current address is ((INSERT Your Current Address Here)).
My current contact phone numbers are as follows:
Home: ((INSERT HOME PHONE HERE))
Cell: ((INSERT CELL PHONE HERE))
Work: ((INSERT WORK PHONE HERE))
In case of my death I would like to ensure you have noted the money, interest and ownership of this account is transferred to ((INSERT Name of Heir)) my ((Insert Relationship to Heir, i.e. Wife or Next of Kin or Daughter, etc.)).
The contact information for ((INSERT Name of Heir)) is as follows:
Address: ((INSERT Heir's Address))
Phone: ((INSERT Heir's Phone Number))
Alternate Phone: ((INSERT Heir's Alternate Phone Number))
Please let me know if you require any additional information on this account.
Sincerely,
((SIGN YOUR NAME HERE)) ((TYPE YOUR NAME HERE))
4. Send this letter out each time your address or telephone number changes or in the event you would like to change your heir.
These 4 simple steps will ensure your money does not end up listed as missing money and in the hands of the government.
Are You Currently Owed Missing Money?
To check and see if you or your family has money listed as missing money you can conduct a free search in an unclaimed money database.
The search will tell you if you have unclaimed money listed in your name. You can also search the names of your family and friends.
If the search indicates you are owed missing money the site will tell you how and where to submit your claim for the money.
After claims are verified the unclaimed money check is sent usually within 2 to 16 weeks.
