Unclaimed Assets Await Rightful Owners

Billions of dollars in unclaimed assets are languishing in state and federal coffers, waiting for the rightful owners to make their claims. The mysterious money has been building for more than 200 years--with an estimated $75 billion pouring in last year alone.

Growing publicity about unclaimed assets and the increased popularity of the Internet has fueled an online--and offline--treasure hunt for the funds. Net navigators are scouring government sites and databases hoping their names will be among those who are owed assets.

Computer users are also using online resources to track family histories, because heirs can make claims on money still owed to deceased relatives. Directories such as Ancestors.com are the place to begin the hunt for names of forebears, and Switchboard.com can track addresses.

The search requires plenty of old-fashioned offline work, too. Compiling documents, making phone calls, and writing claim letters are essential. Efforts can pay off, though. An unemployed Montana man found $21,000 in benefits from an old retirement fund his father had forgotten about.

Reality is more often like the story of a former Canadian mine worker who is seeking a $129 paycheck he forgot to collect several years ago. Or that of retiree Bob Jones of Billings, Montana, who searches for assets mostly for the fun of it.

A few words of caution are in order, too. While commercial search firms often offer to track funds for a percentage of what is recovered, in most cases ordinary people can do it themselves. The search can be slow and painstaking, though, so patience and perseverance are key.

Forgotten funds

Where does the money come from? Believe it or not, most of it is unclaimed because of forgetfulness. People often move and simply forget about small bank accounts, final paychecks, uncollected pensions, tax returns, security deposits, utility deposits, escrow accounts, and more.

After a period of dormancy (usually three to seven years, depending on the type of asset), the government collects the assets and begins a search for the rightful owners. Usually government property officers place ads in newspapers seeking the owners. Most of the money goes unclaimed for decades--in some cases centuries--accruing interest!

"It is worth anyone's time to look for hidden family assets," said asset hunter David Folsom. "The odds are better than Lotto, and it's not that difficult."

Folsom, author of Assets Unknown: How To Find Money You Didn't Know You Had, offers a comprehensive and commonsense approach to the finding lost funds. Recall any paychecks, security deposits, insurance settlements, or other assets that were never received. Compile birth certificates, Social Security numbers, marriage licenses, and death certificates to prove identity and ancestry. Review the appropriate procedures for filing claims in various states and federal agencies. And look in all the right places.

Hiding places

Unclaimed property offices in all 50 states are the most common hiding places for unclaimed assets. The National Association of Unclaimed Property Administrators is an excellent starting point. It lists state offices and provides directions for filing claims.

NAUPA president Marcela Easley noted that unclaimed property officers are anxious to connect missing money to rightful owners. A letter with full married name, maiden name, Social Security number and addresses for the state should get a response in a matter of weeks, she said.

"There is a real increase in the number of people looking for money," Easley said. "States are being much more proactive about finding the owners."

The federal government holds untold billions in pensions, insurance checks, tax returns, and veteran benefits. The federal bureaucracies are more complicated to deal with, and their Web sites often lack information about filing claims.

The Pension Benefits Guarantee Corporation site features a directory of 2,700 people owed a total of $10 million from terminated pension plans. To date, 275 pensioners have successfully claimed $1.1 million in benefits, with awards ranging from $6 to $66,000. For those who find their name in the directory, the site offers details for filing a claim.

The U.S. Department of Veteran Affairs is the repository of thousands of disability accounts and benefit packages returning military personnel didn't bother to collect. Folks with relatives who served in conflicts dating back to the Civil War could be the heirs.

The Federal Housing Authority owes refunds to homeowners who prepaid their mortgage insurance, only to sell their homes. The original home buyers--or the heirs--are still entitled to a refund. The Web site is not helpful, however; an FHA case number and daytime phone should be sent to the Department of Housing and Urban Development, Disbursement Branch, P.O. Box 44372, Washington, D.C. 20026-4372.

There are more offline sources to check as well. A tidy $2 billion in unredeemed savings bonds, treasury bonds and T-bills sits in the U.S. Treasury. Inquires about savings bonds should be sent to the Bureau of Public Debt, Parkersburg, West Virginia 26106. Queries about T-bills and treasury bonds should be taken up with a Federal Reserve bank, preferably in person.

The Internal Revenue Service is holding money for thousands of taxpayers who have not received recent refund checks. Call (800) 829-1040. And for unclaimed Social Security checks, call the Social Security Administration at (800) 772-1213.

Above all, the search should be enjoyable--not rushed. These assets have been sitting around for years, and they'll be there a little longer.

If you have an interesting experience while out fortune hunting, or do manage to find your pot of gold, come back by and drop us a line telling us about your adventure.

Happy Hunting!

Fortune hunter

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