Imagine finding out you’re entitled to thousands of dollars, only to be told you can’t have it. This is exactly what happened to Dale Benerofe from Georgia when she discovered $23,000 in unclaimed property from her deceased parents. Her story highlights an important issue that affects millions of Americans: unclaimed property.
In this blog, we’ll explore what unclaimed property is, how you can locate it, and why proper estate planning could have helped Ms. Benerofe receive her inheritance. Let’s start by understanding unclaimed property and how it could impact you and your family.
What Is Unclaimed Property?
Unclaimed property refers to financial assets that have been abandoned or forgotten for a specific period, usually three to five years. When no one claims these assets, financial institutions must turn them over to the state for safekeeping.
Common forms of unclaimed property include:
- Forgotten checking or savings accounts
- Uncashed dividends or payroll checks
- Abandoned stocks, bonds, or brokerage accounts
- Unclaimed life insurance proceeds
- Refunds and trust distributions
- Forgotten certificates of deposit and annuities
Many of these assets go unclaimed because someone passes away and their loved ones are unaware of their existence. It’s more common than you might think, with approximately $60 billion in unclaimed property across the U.S.
Consider this: if something happened to you tomorrow, would your family know exactly what you have and where to find it? Many people aren’t sure, and this uncertainty means their assets might end up in the state’s unclaimed property department. According to the National Association of Unclaimed Property Administrators, about one in seven Americans has some form of forgotten property. With billions of dollars at stake, it’s possible you might have unclaimed property.
What the Process Looks Like
Finding and claiming unclaimed property can be challenging. Here’s a step-by-step guide:
- Check Multiple States: Search in your current state and any other states where you’ve lived, worked, or done business.
- Search Name Variations: Use different spellings and include middle names or initials. Check former names if applicable.
- File a Claim: If you find property owed to you, file a claim form with the state holding your assets. Each state may require a separate form.
- Gather Documentation: Provide proof of identity and your right to the property, such as proof of address, name changes, or marriage and divorce records. Be ready to provide similar documentation for deceased loved ones.
The process can be lengthy, taking weeks, months, or even years.
A Real-Life Experience and Cautionary Tale
Dale Benerofe’s story illustrates the difficulties of claiming unclaimed property. After discovering $23,000 that should have passed to her from her parents, she faced frustration. Despite filing a claim with the Georgia Department of Revenue and providing required documentation, she couldn’t provide her father’s driver’s license, which had long been lost. Over a year later, she is still fighting for the money, finding the process disheartening and far from what her parents would have wanted.
The Easy Way to Ensure Your Assets Aren’t Lost
The best way to avoid such issues is through Life & Legacy Planning. A comprehensive estate plan ensures that your assets are documented, updated, and easily accessible for your loved ones. If Ms. Benerofe’s parents had a Life & Legacy Plan, the $23,000 would have been passed on without the stress of dealing with state bureaucracy.
My Life & Legacy Planning process begins with educating you on what will happen to your assets and how you want them distributed. We’ll explore various options and create a plan that suits you and your family. With a thorough inventory of your assets – kept private and updated throughout your life – you’ll have peace of mind knowing your loved ones can access your assets when needed, without the risk of losing them to the government.
If you’ve already created a Life & Legacy Plan with us, remember to keep your asset inventory updated. If you’ve had a life change or need to update your plan, contact us right away.
Ready to Secure Your Assets? We Can Help
Unclaimed property is a serious issue, but by educating yourself, you’re already on the path to protecting your assets. We’re here to guide you through the process and ensure your loved ones are taken care of.
At Cheever Law, APC, we don’t just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love, starting with a valuable and educational Life & Legacy Planning Session. This will allow you to get more financially organized and make the best choices for the people you love. If you have already completed your estate plan, we will review that plan at your Life & Legacy Planning Session to ensure that it will work the way you intend and address any holes or gaps that may be present if circumstances have changed since you executed your plan.
To learn more about our one-of-a-kind systems and services, contact us or schedule a no-obligation 15-minute introductory phone call today.