Unclaimed Money From Deceased Relatives

Unclaimed money is money that has not been claimed by any heir or beneficiary, and has been turned over to the state. You may have some unclaimed money or unclaimed inheritance from deceased relatives without you knowing it. Deceased relatives may not have been organized with their finances and may have purchased insurance policies and annuities, forgetting about them. Some executors or administrators may have neglected to search for unclaimed funds or may have searched for it, but at the time of search, was still not with New York State’s Office of Unclaimed Funds.

Turning over unclaimed assets to the state

All companies are required to turn over unclaimed assets to the state. These unclaimed assets can take the form of bank accounts, life insurance policies, certificates of deposit, savings bonds, dividend or payroll checks, IRA accounts, 401K retirement plans, safety deposit box contents, securities, pension benefits, and uncashed checks.

Usually, property is deemed abandoned in New York when there has been no activity in the account for a set period of time, usually between two to five years, depending on the property. For this reason, an administrator or executor may have been appointed, but if the deceased had no record of owning such property, the executor or administrator may not know of such amount. Even if the executor or administrator checked the unclaimed funds, it would not be there because property is turned over in the Office of Unclaimed Funds between two to five years after the cessation of activity in the account. If you are an heir, it is to your advantage to keep on checking the proper websites to see if you are the rightful heir to unclaimed assets, money or inheritance.

The unclaimed assets or unclaimed inheritance

You can search for unclaimed assets or unclaimed inheritance here:

New York State Comptroller

https://ouf.osc.state.ny.us/ouf

Life insurance policy finder in New York

https://myportal.dfs.ny.gov/web/guest-applications/lost-policy-finder

Unclaimed IRAs (search by state)

https://unclaimed.org/search/

Search tips

When searching for unclaimed money or inheritance, use the last name first and the first initial of the first name. This will narrow your search accordingly. It will still be broad enough that even if your deceased relative’s name was misspelled wrongly, you will be able to find it. If your deceased relative has two first or two last names or a hyphenated name, you can try both names together with a hyphen (e.g. Smith-Washington), with a space (e.g. Smith Washington), or without a space (e.g. SmithWashington). You can also try looking for the nickname. If the name is frequently misspelled, use the misspelled name.

How to withdraw unclaimed money or inheritance

In New York, unclaimed money or inheritance must be claimed by the executor or administrator, especially if the claim exceeds $1000. If you are the designated beneficiary, however, you will be entitled to the unclaimed money or inheritance without need of appointment of a personal representative of the estate.

The state will provide you with the procedure to claim the unclaimed money or inheritance. Usually, they will require a copy of the death certificate (which you can get from the Department of Health), proof of address or ownership connecting owner to the address or funds, letters of testamentary or administration issued by the court certifying your appointment, dated within the last six months, or a small estates affidavit and table of heirs (for properties less than $50,000).

In New York, there are billions of lost money that have not been claimed. Search to see if you are entitled to it. You can input the names of deceased relatives to ensure you are not missing out any windfall that you may be entitled to.

How Money Becomes Unclaimed

Money becomes unclaimed through various pathways:

• Forgotten accounts. The owner opens an account and forgets about it. The bank loses contact when the owner moves, dies, or simply stops checking.
• Life insurance policies the family doesn't know about. The insured purchased a policy, never told the family, and the insurer eventually loses contact.
• Old employer pensions. A former employee never claims pension benefits, often because they moved or lost the original paperwork.
• Stock dividends. Shareholders move without updating their address. Dividends accumulate uncashed.
• Refund checks. Tax refunds, insurance refunds, utility deposits, and other refunds sent to outdated addresses.
• Safe deposit boxes. Boxes whose fees go unpaid eventually have contents turned over to the state.
• Court awards. Class action settlements, judgments, and other court-awarded funds.

After a holding period without contact (typically 2-5 years for various asset types), the holder must remit the funds to the state under "escheat" laws.

Federal Unclaimed Property Sources

In addition to state-level unclaimed property, several federal sources may hold unclaimed funds:

• Treasury Direct. Matured savings bonds that have not been cashed.
• Treasury Hunt. The Treasury's database of matured but unredeemed savings bonds.
• FDIC. Failed bank account balances not claimed by depositors.
• NCUA. Failed credit union account balances.
• HUD. Refunds on FHA-insured mortgages.
• IRS. Refund checks that could not be delivered.
• PBGC. Unclaimed pension benefits from terminated pension plans.
• Department of Veterans Affairs. Unclaimed life insurance for veterans.

Comprehensive searches should check both state and federal sources because different types of assets end up in different places.

The Five-Year Holding Period in New York

New York's Abandoned Property Law sets specific holding periods after which property must be reported and remitted to the state Comptroller's Office of Unclaimed Funds. The general rule is five years for most categories, though some categories have shorter periods:

• Wages and payroll: one year.
• Money orders: seven years.
• Travelers checks: fifteen years.
• Bank accounts: five years from last contact.
• Life insurance proceeds: three years from when proceeds became payable.
• Brokerage accounts: five years from last contact.

During the holding period, the holder may make efforts to contact the owner. If those efforts fail, the funds are remitted to the state after the holding period expires.

The Right of the State to Hold the Funds

The state holds unclaimed funds indefinitely on behalf of the rightful owner or their heirs. The funds do not become state property — they remain claimable by the owner or by heirs after the owner's death. The state earns income from investing the funds but does not consume the principal.

This perpetual right means there is no deadline for claiming unclaimed funds. A claim filed today for funds remitted decades ago is still valid if the claimant can prove their entitlement.

Documentation Required for Claims

Documentation requirements vary by claim type but typically include:

• Proof of identity. Government-issued ID for the claimant.
• Proof of the deceased's identity. Death certificate and birth certificate.
• Proof of relationship. Documents showing the connection between the deceased and the claimant.
• Proof of authority. Letters testamentary or letters of administration for estate representatives; small estates affidavit for modest claims.
• Address documentation. Showing the connection between the owner of the funds and a known address (utility bills, tax returns, voter records).
• Specific documentation for the asset type. Bank statements, insurance policies, stock certificates, or other documents specific to the type of asset.

Larger claims may require additional documentation. Claims over $1,000 in New York typically require formal estate representation (letters testamentary or administration) even where small estates affidavits might suffice for smaller claims.

Common Claim Scenarios

Common scenarios where unclaimed property comes into play:

Scenario 1: Deceased relative's bank account. A family member discovers that a deceased aunt had a bank account they didn't know about. The funds have been remitted to the state. The family member must establish their right to inherit (typically through probate or administration) and then claim the funds from the state.

Scenario 2: Unclaimed life insurance. The deceased had a life insurance policy that was never cashed. The proceeds were eventually remitted to the state. The beneficiary or estate can claim the funds with appropriate documentation.

Scenario 3: Old stock holdings. The deceased owned shares in a company that have since paid dividends and the dividends went unclaimed. The estate can claim the dividends and potentially the underlying shares.

Scenario 4: Forgotten safe deposit box. The deceased had a safe deposit box whose fees went unpaid. The contents were eventually turned over to the state. The estate can claim the contents.

Beware of "Asset Recovery" Services

Some companies offer to find and recover unclaimed assets for a percentage of the funds recovered. While some of these services are legitimate, many take a substantial cut for work that the family could do themselves for free. Before paying for such services:

• Search the free databases yourself first.
• Understand exactly what services are being offered and what fee will be charged.
• Verify that the company is legitimate and not just sending solicitations based on public records.
• Recognize that fees of 30-50% are excessive for what is essentially data lookup.
• Consider whether an attorney's flat or hourly fee would be more cost-effective than a percentage-based recovery service.

Tax Implications of Recovered Funds

Recovered unclaimed funds have tax implications:

• The funds may be taxable to the recipient if they would have been taxable to the original owner.
• Insurance proceeds generally retain their tax-free character.
• Bank account funds (including accrued interest) may include taxable interest.
• Inherited funds may receive a step-up in basis for tax purposes.
• Estate tax may apply if the recovered amount, combined with other estate assets, exceeds applicable thresholds.

Consult a tax advisor when recovering significant unclaimed funds to ensure proper reporting and to take advantage of available tax benefits.