Every year on February 1, states across the country observe National Unclaimed Property Day. As an estate planning attorney, I see this day as an important reminder of a financial issue that surprises many families: billions of dollars in assets are sitting with state governments, waiting to be claimed by their rightful owners.
These are not rare or unusual assets. In many cases, they belong to everyday people who worked hard, saved responsibly, and simply lost track of an account or benefit over time. Understanding how unclaimed property happens – and how to prevent it – can help you recover money that already belongs to you and protect your family from unnecessary complications later.
What “Unclaimed Property” Really Means
When people hear the term unclaimed property, they often imagine abandoned homes or hidden treasure. In reality, unclaimed property is far more common – and far more ordinary.
Unclaimed property is typically financial assets that have had no activity or contact for a certain period of time, usually one to five years, depending on state law. When a financial institution cannot reach the owner after making required attempts, it must transfer the asset to the state. This process is called escheatment.
Importantly, the state does not own this property. The state simply holds it in safekeeping until the rightful owner – or their heirs – come forward to claim it.
Common examples include:
- Old bank or credit union accounts
- Uncashed checks or refunds
- Forgotten stocks, dividends, or investment accounts
- Life insurance proceeds beneficiaries didn’t know existed
- Contents of abandoned safe-deposit boxes
- Final paychecks from former employers
These assets are far easier to lose track of than most people realize.
How Assets Become Lost – Even When You’re Careful
Most unclaimed property is not the result of carelessness. It usually happens because life changes.
People change jobs and forget about small retirement accounts. They move and forget to update their address. They change their name after marriage or divorce and never notify every financial institution. Accounts increasingly exist only online, without paper statements, making them easier to overlook.
After someone passes away, family members may not know about every account or policy the person owned. Without a clear system for tracking assets, important funds can be missed entirely – even when the deceased fully intended those assets to benefit loved ones.
Across the United States, tens of billions of dollars are currently held by state governments as unclaimed property. While states return billions to owners each year, more assets become unclaimed faster than they are recovered. This tells us one thing clearly: without planning, this can happen to anyone.
Why February 1 Matters
National Unclaimed Property Day exists for three reasons:
- To encourage people to search for and reclaim assets that belong to them
- To educate the public on how easily property becomes unclaimed
- To help families prevent future losses through better organization and planning
February 1 is intentionally placed early in the year – before tax season and before another year passes with assets sitting untouched. The message is simple: check, claim, and prevent.
What You Can Do Right Now
The first step is easy: search for unclaimed property in your name.
Every state has a free, searchable unclaimed property database. You can search through your state’s treasury or comptroller website. If you’ve lived or worked in more than one state, you should search each one. There is no single national database, but unclaimed.org provides direct links to every state’s official site.
When searching, try variations of your name, including maiden names, middle initials, or nicknames. If you find property, the claim process is free, though it may require documentation to prove ownership. Claims for deceased loved ones typically require additional paperwork, such as death certificates and proof of authority.
While reclaiming property is worthwhile, the most important work is preventing this from happening in the first place.
How Estate Planning Helps Prevent Unclaimed Property
As an estate planning attorney, one of the most valuable things I help clients create is a complete and organized inventory of their assets. This includes bank accounts, investment accounts, retirement plans, life insurance policies, beneficiary designations, and contact information for each institution.
This information should be stored securely but be accessible to trusted people if something happens to you. I also recommend reviewing and updating this inventory regularly, especially after major life changes.
Simple steps like keeping addresses updated, consolidating accounts when appropriate, and making sure someone you trust knows where to find your information can make a tremendous difference.
The Bigger Picture
National Unclaimed Property Day highlights an uncomfortable truth: if no one knows what you own, where it is, or how to access it, your assets can easily get lost in bureaucracy.
The goal isn’t just to reclaim forgotten money. The real goal is to make sure nothing you worked for ever becomes lost at all.
Taking a few minutes to search for unclaimed property is a good start. Taking the next step – organizing your financial life and putting a proper estate plan in place – is what truly protects your family.
How I Help Protect What You’ve Built
As an estate planning attorney, I help families create comprehensive Life & Legacy Plans that keep assets out of limbo and in the hands of the people they’re meant to support. My approach doesn’t end when documents are signed. I build in systems to review and update plans as life changes, so nothing slips through the cracks.
This February 1, don’t just search for unclaimed property. Take the step that ensures your assets are never lost in the first place – and that your loved ones are protected when they need it most.
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. The Life & Legacy Planning Session 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 15-minute introductory call today.