Unclaimed funds are one of the many compelling reasons to have a proper estate plan and to keep one’s family or loved ones informed.
In Florida, and across the United States, unclaimed property, including money and securities, can end up in the hands of the state through a process known as escheat. This may occur when assets are left unclaimed for a prolonged period or when there are no known heirs or beneficiaries. The types of property affected can range from forgotten bank accounts and uncashed checks to the contents of abandoned safe deposit boxes, which might include watches, jewelry, coins, stamps, or other personal items.
More than $58 billion in unclaimed assets currently sit with state governments across the U.S., awaiting rightful owners. In Florida alone, approximately $2 billion is being held by the Department of Financial Services. These assets may be claimed by the rightful owners, or their heirs, at any time.
What Are Unclaimed Funds?
Unclaimed funds, also referred to as unclaimed property, are assets that have had no owner-generated activity or contact for an extended period—typically five years in Florida. These may include:
- Dormant bank accounts
- Uncashed checks
- Insurance benefits
- Stock dividends
- Utility deposits or refunds
- Court settlements
- Safe deposit box contents
Notably, the contents of storage units, or assets hidden within a residence (such as money stashed in books or under mattresses), are not included in state-held unclaimed property databases.
Why Do Funds Become Unclaimed?
Assets often become unclaimed for reasons such as:
- Failing to update contact information after moving
- Forgetting about an old account or insurance policy
- Losing or failing to cash checks
- Passing away without notifying heirs about the existence of certain assets
Importantly, there is no statute of limitations on claiming escheated property in Florida. Legal heirs can recover property even decades later, although Florida law does not require the state to pay interest on such recoveries.
How to Search for Unclaimed Funds
The process of searching for and claiming unclaimed property is now easier than ever. The National Association of Unclaimed Property Administrators (NAUPA) provides free tools such as:
These platforms direct users to the appropriate state-managed databases. To make a claim, individuals must provide legitimate proof of identity and entitlement.
As an example, the largest single payout on record occurred in 2011, when a Kansas City woman recovered $6.1 million from long-forgotten stock held by her ancestors.
The Estate Planning Connection
Many of these issues can be avoided with proper estate planning and by informing one’s family or beneficiaries. When estate documents, such as a Last Will & Testament, Revocable or Irrevocable Trust, or Lady Bird Deed, are carefully prepared, they provide clear direction for the distribution of a person’s assets upon death. This minimizes confusion, helps prevent assets from going unclaimed, and reduces the likelihood that property will end up in state custody.
An effective estate plan ensures that:
- All known assets are identified and distributed according to the Florida resident’s wishes;
- Family members are aware of one’s financial affairs;
- One’s legacy is preserved for the people they care about most.
Florida’s former Chief Financial Officer, Jimmy Patronis, has emphasized the importance of reclaiming unclaimed property, stating that 1 in 5 Floridians has money waiting to be claimed. To raise awareness, the state launched the “Florida Treasure Hunt” initiative, which last year alone returned $349 million to rightful owners or their survivors.
Conclusion
Unclaimed property is more common than most people realize. While state programs help individuals recover these forgotten assets, preventing escheat through proactive estate planning is far better than attempting to reclaim property after the fact. By preparing a comprehensive estate plan and keeping loved ones informed, a Florida resident can help ensure that their legacy is preserved and their assets remain in their family’s hands—not in the state’s coffers.
The foregoing is a brief and general overview of the topic and the need for specific and experienced legal and tax advice is emphasized.
If you have questions about creating an estate plan or any related legal matter, contact the experienced attorneys at CASERTA & SPIRITI in Miami Lakes, Florida.