Why Assets End Up Unclaimed and How to Keep Yours From Being One of Them

Every February 1, states across the country observe National Unclaimed Property Day, a reminder of a surprisingly common financial problem: billions of dollars in forgotten assets currently sitting with state governments, waiting for the people who actually own them to come claim them.

This day exists for one simple reason: to help you find money that already belongs to you and to prevent your assets from getting lost in the future. Understanding what unclaimed property is, how it happens, and how to protect yourself could mean recovering funds you didn’t even realize were missing… and making sure your family never loses track of what you worked so hard to build.

Unclaimed Property, Explained

When most people hear “unclaimed property,” they picture abandoned houses or some kind of hidden treasure situation. The reality is much less dramatic and far more common. It affects millions of Americans every year.

Unclaimed property is simply a financial asset that’s gone dormant because there’s been no activity or contact between the owner and the institution holding it for a certain period of time usually one to five years, depending on the state. When the company can’t reach the owner after that legally required window, it must turn the asset over to the state through a process called escheatment. The state doesn’t keep it forever, it becomes the caretaker until the rightful owner (or heirs) claims it.

And the assets that end up unclaimed are surprisingly ordinary. Think forgotten bank or credit union accounts, often opened years ago with small balances that didn’t feel urgent at the time. Uncashed checks and refunds also get lost easily, especially after a move.

Other common examples include old stocks, dividends, or mutual funds that were purchased decades ago and forgotten, life insurance payouts beneficiaries never knew existed, abandoned safe-deposit box contents, and even final paychecks from former employers. A job change plus a move and suddenly money that belongs to you ends up sitting with the state instead.

It’s not rare. It’s not weird. It’s just what happens when life gets busy and plans aren’t kept current.

Why Assets Go Missing and It Happens to Everyone

People lose track of assets for incredibly ordinary reasons and it usually has nothing to do with being irresponsible. Life just moves fast. Changing jobs can mean old retirement accounts get left behind in the shuffle. A name change after marriage or divorce can disconnect you from accounts opened under a prior name, especially if every institution wasn’t updated.

When someone dies, families often don’t even know what accounts or policies existed in the first place. Without a clear, comprehensive inventory, important assets get overlooked sometimes significant sums the person fully intended their loved ones to receive.

And the scale of this issue is enormous. Across all 50 states, governments collectively hold an estimated $70 billion in unclaimed property. States return billions each year to rightful owners, but the total keeps growing. More assets become unclaimed faster than they’re reunited with the people they belong to.

These numbers represent real people, people who worked hard, saved carefully, or were entitled to benefits they never received. And the problem isn’t going away on its own, because modern financial life is fragmented. Most of us have multiple banks, investment accounts, insurance providers, and employers over a lifetime. Accounts move online, paper statements disappear, passwords get lost, and unless someone knows what exists and how to access it, assets slip through the cracks.

That’s exactly why comprehensive planning and a clear system for tracking what you own matters so much.

The Reason Behind National Unclaimed Property Day

National Unclaimed Property Day was created with three simple goals. First, it encourages people to search state databases and reclaim assets that already belong to them. Second, it helps educate the public on how easily property becomes unclaimed because this issue isn’t about being careless, it’s about life getting busy and accounts getting forgotten. Third, it’s meant to prevent future losses through better organization and thoughtful planning.

February 1 was chosen on purpose as an early-year “reset” moment before tax season ramps up and before another year passes with assets sitting in state custody. States, consumer advocates, and financial professionals use the day to promote one clear message: Check. Claim. Prevent.

What You Can Do Now (It’s Easier Than You Think)

The most immediate step you can take right now is simple: check for unclaimed property in your name. Every state maintains a free, searchable database. Just visit your state treasurer or comptroller’s website, find the unclaimed property section, and search your name. It takes only a few minutes.

There isn’t one national database, so if you’ve moved over the years, make sure you search every state where you’ve lived or worked. The National Association of Unclaimed Property Administrators also maintains unclaimed.org, which links to every state’s database and makes multi-state searches easy.

When you search, try a few variations of your name, maiden names, middle initials, nicknames, or professional versions. Property can be listed under any of those. And if you find something that belongs to you, the claiming process is free. States don’t charge fees to return your property, though you’ll need to provide identification and documentation proving ownership. If you’re claiming assets for a loved one’s estate, you’ll also need items like a death certificate and whatever additional paperwork the state requires.

That said, the claiming process can be slow, frustrating, and sometimes claims are denied. Which is why the more important work is preventing assets from becoming “lost” in the first place.

That’s where comprehensive estate planning comes in. When you work with me, we create a clear, organized inventory of everything you own, bank accounts, investment firms, retirement accounts, life insurance policies, beneficiary designations, and more. We include account numbers, institution contact information, and approximate values. And yes, I can help you keep it updated over time.

I also recommend storing that inventory somewhere secure but accessible, and making sure at least one trusted person knows where to find it if you become incapacitated or when you die.

Finally, a simple rule: whenever you move, update your address with every financial institution. And when it makes sense, consider consolidating accounts because fewer accounts means fewer opportunities for something to slip through the cracks.

Why This Really Matters

National Unclaimed Property Day highlights a quiet but expensive reality: if no one knows what you own, where it’s held, or how to access it, your assets can easily disappear into bureaucracy. The point isn’t just to recover forgotten accounts. The real goal is to make sure nothing you worked so hard to build ever becomes “lost” in the first place.

This February 1, take a few minutes to search for unclaimed property. Then take the more meaningful step, get organized, create clarity, and make sure your assets stay with the people you actually want to benefit from them. Your future self (and your loved ones) will thank you.

How I Help You Protect What Matters Most

National Unclaimed Property Day is a good reminder that even the most organized, diligent people can lose track of assets in today’s complicated financial world. But you don’t have to leave this to chance or rely on a once-a-year nudge to protect what you’ve worked so hard to build.

As a Personal Family Lawyer® Firm, we help you create a comprehensive Estate Plan so your assets go exactly where you intend to the people you love, not into a state database as another unclaimed statistic. Once your plan is in place, you can breathe easier knowing your wishes will be honored, your loved ones supported, and your property protected.

And because life changes, we build in systems to review and update your plan over time so nothing gets lost, forgotten, or left behind. You shouldn’t have to carry that mental load alone.

This February 1, do more than just search for unclaimed property. Take the step that truly protects your family’s future.

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This article is a service of 20WestLegal LLC. We don't just draft documents; we ensure you make informed and empowered decisions about life and death for yourself and the people you love. That's why we offer a Planning Session, during which you will get more financially organized than you've ever been before and make all the best choices for the people you love. You can begin by calling our office in Sudbury, Massachusetts today to schedule an Estate Planning Session and mention this article to find out how to get this $750 session at no charge.

The content is sourced from Personal Family Lawyer® for use by Personal Family Lawyer® firms, a source believed to be providing accurate information. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, such advice services must be obtained on your own separate from this educational material.