Heirs Claiming Unclaimed Money: What Families Need to Know
When someone passes away, financial accounts, refunds, or other assets may remain unclaimed. In many cases, those funds are transferred to a state’s unclaimed property program until a rightful owner or legal heir comes forward. Heirs claiming unclaimed money must follow specific legal and administrative steps to prove their relationship and entitlement.
This guide explains how the process works, what documentation is typically required, and what families should realistically expect when filing a claim through an official state program.
This guide explains how the process works, what documentation is typically required, and what families should realistically expect when filing a claim through an official state program.
What It Means for an Heir to Claim Unclaimed Funds
When a person dies and leaves behind dormant bank accounts, uncashed checks, insurance proceeds, or other financial assets, businesses may eventually transfer those assets to the state under unclaimed property laws. The funds remain legally owned by the original owner — or, after death, their estate or heirs.
Heirs claiming unclaimed money are individuals legally entitled to inherit assets from a deceased person. This may include spouses, children, siblings, or other relatives, depending on state inheritance laws and whether a will exists.
It is important to understand what this process is and is not:
Heirs claiming unclaimed money are individuals legally entitled to inherit assets from a deceased person. This may include spouses, children, siblings, or other relatives, depending on state inheritance laws and whether a will exists.
It is important to understand what this process is and is not:
- It is a formal claim through a state-run unclaimed property program.
- It is not automatic inheritance without documentation.
- It does not replace probate or override a valid will.
Why Heirs Often Discover Unclaimed Property After a Death
Unclaimed money frequently surfaces during estate settlement or years later when families conduct a search. Common situations include:
- Dormant bank accounts
A checking or savings account may have become inactive before the individual passed away. After a dormancy period, the bank transfers the funds to the state. - Uncashed payroll or refund checks
If a check was never deposited, it may eventually be reported as unclaimed property. - Life insurance proceeds
A beneficiary may have been unaware of a small policy, especially with older employer-provided coverage. - Utility deposits or security deposits
Refunds owed at the time of death may not have been collected. - Stocks or dividends
Investment accounts without recent activity may be escheated to the state.
How the Official Claim Process Works for Heirs
Step 1: Locate the Property in the Correct State
Unclaimed property is held by the state where the original owner last lived or where the reporting company is located. Heirs should search:
- The state of the deceased person’s last known address
- Any states where the person previously lived or worked
Step 2: Submit Required Documentation
When filing a claim as an heir, documentation typically includes:
Incomplete documentation is one of the most common reasons claims are delayed.
- Certified copy of the death certificate
- Proof of identity (government-issued ID)
- Proof of relationship (birth certificate, marriage certificate, etc.)
- Estate documents, if applicable (will, probate order, letters testamentary)
Incomplete documentation is one of the most common reasons claims are delayed.
Step 3: State Review and Verification
After submission, the state reviews the claim to confirm:
- The claimant’s identity
- The claimant’s legal standing as heir or estate representative
- That no competing claims exist
Understanding the Role of Official State Programs
Every U.S. state operates an official unclaimed property program under its treasury or financial administration office. These programs are government-run and regulated under state law.
Key points families should know:
Key points families should know:
- Searching for unclaimed money is free.
- Filing a claim is free.
- States do not charge a percentage fee to release funds.
- There is no deadline in most states for heirs to claim property.
How Long the Process Takes and What to Expect
States generally hold unclaimed funds indefinitely, meaning heirs can file a claim years after the property was reported.
However, the review process can take time. Typical factors that affect timing include:
However, the review process can take time. Typical factors that affect timing include:
- Whether probate documentation is required
- Whether multiple heirs must be identified
- Whether records are incomplete or outdated
- Whether additional verification is requested
Practical Guidance for Families Filing a Claim
- Search every state where the deceased lived or worked.
- Use the full legal name and any known prior names.
- Gather certified copies of key documents in advance.
- Confirm whether probate was opened before filing.
- Check if you need a small estate affidavit under your state’s laws.
- Respond promptly to any state follow-up requests.
- Keep copies of everything submitted.
- Ensure mailing addresses are current and accurate.