How Long Does a State Hold Unclaimed Money?
This guide explains how long unclaimed money is held by state programs and what happens to it over time. It covers common holding periods, why funds become unclaimed, and how people can check and recover property through official state processes.
What does it mean when a state holds unclaimed money?
Unclaimed money refers to financial assets that were turned over to a state after the original owner could not be contacted. States hold these funds in custodial trust, meaning the money still belongs to the rightful owner or their heirs.
Holding unclaimed money allows states to safeguard assets like forgotten bank accounts, uncashed checks, or insurance proceeds until someone comes forward to claim them.
Holding unclaimed money allows states to safeguard assets like forgotten bank accounts, uncashed checks, or insurance proceeds until someone comes forward to claim them.
Why does unclaimed money end up with the state?
Unclaimed money is usually transferred to a state after a period of inactivity and failed contact attempts. Common situations include:
- Bank accounts with no activity for several years
- Uncashed payroll, refund, or dividend checks
- Insurance benefits that were never claimed
- Utility deposits after a move
- Overpayments or credits from businesses
How long states hold unclaimed money and how it works
Step 1: Property becomes inactive
Financial accounts or payments go unused for a set period, often several years, depending on the type of property.
Step 2: Property is transferred to the state
After required notifications, the holder transfers the unclaimed funds to the state’s unclaimed money program.
Step 3: State holds funds indefinitely
Most states hold unclaimed money indefinitely until the rightful owner or heirs file a valid claim. The state acts as a custodian, not the owner.
Are state unclaimed money programs legitimate?
Yes. State unclaimed money programs are official government programs established by law. Their purpose is to protect lost or forgotten assets and reunite them with their owners.
Searching state databases and filing a claim is free. States do not require payment to look up or recover unclaimed money.
What to expect over time
Unclaimed money is typically held by states without an expiration date. There is usually no deadline for owners to come forward.
Once a claim is submitted, processing times can vary. Some claims may be resolved in a few weeks, while others take longer depending on verification requirements and documentation.
Tips for checking and claiming unclaimed money
- Search states where you currently live and where you lived previously
- Use variations of your name, including maiden names or initials
- Keep records of past addresses and employers
- Respond promptly if a state requests additional documentation
- Check periodically, as new property is reported each year
Next steps to take
You can begin by checking official state databases to see if unclaimed money is held in your name