There is a letter on your mailbox. On the top is stamped “Notice of Abandoned Property.” You jump a beat. What does this imply? Getting into difficulty?
Breathe in. This is good news perhaps.
What Is Abandoned Property?
The money or items that somebody forgot are abandoned property. Perhaps you relocated, and forgot to close a bank account. Or there is a security deposit that was never returned. There are cases when individuals inherits the money unknowingly.
Employers, banks, and insurance companies retain this stuff over years. They give it to the state when they are unable to locate its owner. This is referred to as escheatment.
Why Did You Get This Notice?
The state found property that might belong to you. They checked records and found your name or address connected to it. This happens when:
- Old bank accounts sit dormant
- Insurance policies pay out but can’t find beneficiaries
- Paychecks go uncashed
- Utility deposits never get refunded
- Safe deposit boxes get forgotten
What the notice indicates is that somebody owes you money. How much? That is a matter of what they found.
Don’t Panic About Scams
Now here is the tricky part. There is a difference between the appearance of real notices and those of the scams. A notice that is delivered by the unclaimed property office of your state is the legitimate one. They do not even ask for money in advance. They shall not require personal details on the phone.
Scammers love to copy these notices. They’ll ask for fees to “process” your claim. Red flags include:
- Urgent deadlines
- Requests for credit card info
- Promises of huge payouts
- Poor grammar or spelling
In any case of doubt contact the unclaimed property office in your state.
How to Claim Your Property
Every state has its program. Majorities are having websites to search free. You will have to demonstrate that you are the rightful owner.
Common documents include:
- Driver’s license or ID
- Social Security card
- Proof of address
- Death certificate (for inherited property)
It is a time-consuming process. Do not rely on immediate outcome. There are the claims that require additional documentation or verification.
What If You Ignore the Notice?
There is nothing wrong that would take place when you neglect it. The state keeps the money. There is no time limit in most states, and you can claim it later. But what is the use of waiting? Money is money.
Others are concerned with taxes. The majority of the impounded property is not taxed when you redeem it. Interest accrued when it was in the ownership of the state might be. Ask a tax expert when in doubt.
Prevent Future Abandoned Property
You can stop this from happening again:
Keep records updated. Tell banks when you move. Close accounts you don’t use. Cash checks quickly.
Check on old accounts. Review statements for accounts you rarely use. Small balances can trigger abandonment rules.
Tell your family. Make sure loved ones know about your accounts and policies. This helps prevent inheritance issues.
Use automatic transfers. Set up small transfers between accounts to keep them active.
The Bottom Line
A notice of abandoned property is not a threat. It is a chance. You have lost money, and a person has found it. The procedure to get a claim is free and legal.
Take a look at the unclaimed property site in your state today. You would be surprised what you would come across. The position that I had five years before? They may still be in debt to you. The apartment that you were renting in college? Your deposit is possibly awaiting. Notice of Lease Non-Renewal: Complete Guide for Landlords and Tenants
Why wait till doubt makes you forego your claim. What can be worse than you’re not coming across anything. The greatest part is. You find money you have forgotten you have. Notice of Landlord Entry: Your Complete Guide
Act today. Review your name on the internet using your state database site. It is free and it takes five minutes. You will be glad you did.
