Thanks for voting!Post by Eric L. & Heather S., Savings Advocates
This may sound a little archaic, but each of our 50 states has its own guidelines to seize leftover or misplaced cash and property through an equally archaic process with a hard-to-pronounce name: escheatment (es-cheat-ment).
Let’s break it down with a little history lesson. Escheatment is the legal process each state uses to seize what’s considered abandoned property. It dates back to British common law – meaning, before the United States existed. Yeah, you heard us, that far back. Hard to believe the process is alive and well, albeit tweaked for these modern times.
So what can your state seize? It varies from dormant bank accounts, uncashed payroll checks, stocks, stock dividends, bonds, bond interest, insurance proceeds, utility refunds, contents of safety deposit boxes, even gift cards. Yes, the law has changed from the days of knights and serfs (wow, we just used the word “serf”), but the reality of escheatment is still the same. No contact with your possessions and assets for a prolonged period of time sends up a red flag to your individual state’s government that maybe you’re dead, on the lam or just don’t care about your property. Best way to avoid losing what’s rightfully yours? Know what you have. Sign in, call in or drop in at least once a year to either update your personal information or let them know you’re alive and well. Wouldn’t you rather keep track of your stuff vs. being forced to track it down?
Did we jog your memory for a long-lost checking account or safe deposit box? Not sure where to go from here? Check out the National Association of Unclaimed Property Administrators’ website to see how you can claim funds in your individual state. Also awareness is key, so tell your friends and family about escheatment and how to avoid it.
Tags: Escheatment, Unclaimed Property
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In many ways, I think that escheatment works quite well as public policy. The alternative for unclaimed assets would be to leave them with whoever is controlling them. This way the banks are motivated to keep in touch with their accountholders. Without escheatment SOME banks (not ING) would probably TRY to get people to forget that they had an account so the bank could keep the money.
I also have an example from my own life where escheatment may prove useful. Recently I had a relative die suddenly and unexpectedly. As executor for his will, we had the problem that we might not know what banks he had deposits in! Because of excheatment, we know that in a couple of years we can at least search the state unclaimed properties lists (thanks for the link!) to see if anything shows up there.
Besides which, checking in on your savings at least once a year seems like it’s a pretty good idea anyway. Even if you plan to leave it to earn interest (hey… ain’t savings grand?) it’s still a good idea just to check, and once a year isn’t too much of a burden even for a procrastinator like me.
Great link! That literally to two seconds to check… no free money for me
i know this is entirely unrelated to your article, but since this is a blog for savers, i just wanted to remind readers that estimated taxes are due to the IRS today, September 15th. generally you are required to pay them if you are self-employed or if your employer does not withold at least 90% of what you owe for the year.
here’s a short post on meeting that deadline: http://moneyunderyourfuton.wordpress.com/2009/09/15/estimated-taxes-due-today/