Unclaimed property refers to a broad spectrum of assets. A property is only defined as unclaimed or abandoned if there has been no contact with owner for an extended period of time. Each state has its own set of rules regarding these time lengths. They are usually referred to as the dormancy period. They may also vary based on the type of unclaimed property in question. For instance, un-cashed dividends, unclaimed inheritance or the contents of a safety deposit box.
Claiming unclaimed property
Anyone who has legal or equitable interest in the property can claim the assets. In most cases, working with a reputable reclamation company will help you to recover the assets very quickly.
Types of Unclaimed Property
Even though unclaimed property largely refers to any type of unclaimed funds, assets and properties, it may also include:
-The contents of a safety deposit box
- -Mutual funds and other securities
- -Unclaimed inherited items such heirlooms and valuable collections
- Types of Unclaimed Funds or Unclaimed Money
Unclaimed money is virtually the most common form of unclaimed property. The funds can include a variety of items. It doesn’t necessarily have to be money. The following are some examples of unclaimed money that people usually retrieve:
- -Checking and saving accounts
- -Payroll or un-cashed dividends
- -Insurance refunds or payments
- -Traveler’s checks
- -Certificates of deposit
- -Utility security deposit
- -Customer overpayments
- -Mineral royalty payments
- Types of unclaimed assets
Even though the list of unclaimed money is quite long, there are still many other kinds of unclaimed funds that may be retrieved from federal custodians. In most cases, people will associate the term unclaimed assets with unclaimed property. They forget that the two things are a bit different. Unclaimed assets refer to a broad spectrum of unclaimed or abandoned property; it does not specifically refer to actual money. The items only have cash a value. Examples include:
- -Life insurance policies
- -Trust distributions
- -Unredeemed gift certificates or money orders
- -Unclaimed safety deposit box
- -Inheritance Distribution
Why do unclaimed properties exist?
There are various reasons why unclaimed assets or unclaimed property exist. They usually include:
- -If there was a change of residence or business premises and the new address was not provided or completed.
- -If a check was received and accidentally misplaced, discarded, forgotten or destroyed.
- -When an owner dies without a will detailing all their assets. This usually leaves relatives unaware of different bank accounts, stocks or safety deposit boxes left by the deceased.
- -If there was a clerical error that altered the name or address of a recipient leading to undelivered mails.
- -If the owner forgot about the money or assets in question.
- -In certain situations, parents may open accounts in the names of their minor children and end up forgetting about them. The children will not be aware of these accounts until they receive some sort of public or private notification that they do actually exist.
- -Unclaimed properties may be the result of a business acquisition, dissolution, merger or bankruptcy.
- -A customer may send remittances to an account with no clear indication as to which account the payment should be made. They can also overpay on an account.
With all the information provided above, you will be able to know and understand all the aspects surrounding unclaimed properties.