Understanding Unclaimed Funds and Why You Should Search for Yours Today It’s Unclaimed Funds season again, when financial institutions and other corporations make state-mandated attempts to reunite people with money they’ve lost track of, before handing it over to the state comptroller’s offic e. What Is Unclaimed Property? Unclaimed property refers to money or other assets that have been left inactive or untouched by the rightful owner for a certain period of time known as the “dormancy period”, which is usually one to five years. Common examples include: Paychecks or vendor payments Security deposits Savings or checking accounts Unused gift card balances Insurance payouts Stock dividends Safe deposit box contents If the company or institution holding that money hasn’t heard from the owner after the dormancy period has been met, the law requires them to try to contact the owner in writing. If they don’t succeed, they are required to turn the money over to the state to hold as custodian for the owner until the owner claims it, a process known as escheatment. Why Do Institutions Print Names in the Paper? Businesses like banks, insurance companies, and even your old employer are required to follow state laws regarding unclaimed property. If they don’t, they can face penalties and interest charges or even audits. That’s why many companies take the process seriously and work hard to stay in compliance. Because every state has its own unclaimed property law, companies that operate or have customers in multiple states must keep track of different dormancy periods, due diligence steps, and reporting requirements. The laws in many states, including New York, require companies to make a good-faith effort to notify the owner before turning unclaimed funds over to the state. One way they do that is by sending letters or emails. But if those efforts don’t work, or if the company doesn’t have a valid address, the next step in New York is to publish the owner’s name in a local newspaper. You might see your name on one of the many lists published throughout the year in the Daily News. Check the lists for instructions on how to start the process of claiming your cash. What Happens After the State Gets the Money? Once unclaimed property is turned over to the state, the state becomes the custodian for the funds. States maintain searchable online databases, and in most states, you can file a claim at any time to get your money back. There is no fee to claim what’s yours. What Does This Mean for You? The bottom line: you might be owed money, and you might not even know it. That’s why it’s worth checking periodically to see if your name appears in state unclaimed property databases or newspaper notices. It’s quick, free, and potentially rewarding. Here are some tips for maximizing your chances of finding your unclaimed funds: Search under your full name, maiden name, and common misspellings. Try searching in every state where you have lived or worked. Don’t assume that small amounts aren’t worth claiming. Every dollar counts, and this is your money. If you find something, follow the steps to properly file a claim and submit proof of identity. Take a few minutes today to search the new lists published by companies that are trying to reunite funds they are holding with their rightful owners before handing them over to the state. Then, search your name at www.unclaimed.org to see if a state is holding onto any money for you. In New York, you can also search the State Comptroller’s database at ouf.osc.state.ny.us You just might find money you didn’t know you had. —Luke A. Sims, CPA Partner at MarketSphere Consulting, LLC. MarketSphere Consulting, LLC is not an accounting or a law firm, and the information herein is not intended to be, and shall not be, construed as accounting or legal or advice. ...read more read less