PFT #92 - Personal Finance Tip of the Week: Try Escheating to Find Unclaimed Property

Okay, you’ve got to be escheating me. What on earth does that mean?

The definition derives from medieval times, in feudal law. When a landowner (tenant of a fief) died without an heir or committed a felony, a process was needed for the ownership of the land.

In modern times it is the right of a government to take ownership of estate assets or unclaimed property in the event there are no heirs or beneficiaries.

In layman's terms, you may have a variety of financial assets that you can claim and this includes uncashed payroll checks, inactive stocks, court funds, dividends, checking and savings accounts, and estate proceeds.

So how does this occur?
A few common ones derive with the death of the account holder or forgetting about an account.Let’s say someone moved out of an apartment in the middle of a month and paid a full water bill to the city. This person would be owed a half-month back; however, the rebate check was sent to the old address. Hence, the check goes uncashed and ends up unclaimed property. So let’s go through a few ins and outs.


1. Escheatment laws vary by state, but typically it takes about five years for the state to claim someone’s assets



2. Unclaimed property is not taxed while it is filed as unclaimed; however, the property may be
officially recognized as taxable income when it is reclaimed.

3. Some unclaimed funds such as investments from a 401(k) or an IRA can be reclaimed tax-
free.

So how much money is out there? In New York, the state returns $1.5 million in unclaimed property to people who file claims. As of July 2021, the state had $17 billion in unclaimed property. In addition, the IRS has millions in unclaimed federal tax refunds.

So How Do I Find My Money?
Simply go to missingmoney.com which is a national database and if you find your name with some goodies on them follow the instructions. It’ll feel like you gave a gift back to yourself.

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Episode Transcript

(00:06):
Hello everyone, I am David andyou're listening to the personal finance Tip of
the Week and this week's topic ison a sheeting. Okay, you have
to be a sheeting me. Sowhat on earth does that really mean?
The definition derives from medieval times infeudal law. When a landowner or tenant

(00:30):
of a thief died without an airor committed a felony, a process was
needed for the ownership of the land. In modern times, it is the
right of a government to take ownershipof a state assets or unclaimed property in
the event that there are no heirsor beneficiaries. In layman's terms, you
may have a variety of financial assetsthat you can claim and this includes uncash

(00:54):
payroll checks, inactive stocks, courts, funds, dividends, checking and sayings,
accounts, and a state proceeds.So the question is how does this
occur? A few common examples arewith the death of an account holder or
forgetting about an account. For example, let's say someone moved out of an

(01:15):
apartment in the middle of the monthand paid a full month's water bill to
the city. This person would bezero to half month back. However,
the rebate check was sent to theold address. Hence the check goes uncashed
and ends up in unclaimed property.Okay, so let's go through a few
ins and outs on this subject.Number one. Achievement laws vary by state,

(01:38):
but typically it takes five years forthe state to claim someone's assets.
Number two. Unclaimed property is nottax while it is filed as unclaimed.
However, the property may be officiallyrecognized as taxable income when it is reclaimed.
Number three. Some unclaimed funds,such as investments from a four oh

(01:59):
one K or an IRA, canbe reclaimed tax free. So for context,
people ask how much money is outthere? In New York. The
state returns about one and a halfmillion dollars each year to people who file
claims. As of July twenty one, the state had seventeen million in unclaimed
property. In addition, the IRShas millions of unclaimed federal tax refunds.

(02:23):
Now, the last and the funquestion is how do I find the money?
Simply go to missingmoney dot com,which is a national database, and
if you find your name with somegoodies on them, follow the instructions.
It'll feel like you gave a giftback to yourself. So that will do
it for the personal finance tip ofthe week. Until next time, I am David