National Unclaimed Property Day: Why Estate Planning is More Than Just Documents

Every year on February 1st, we observe National Unclaimed Property Day - a reminder of the staggering $60 billion in forgotten and abandoned assets currently held by state governments across America. And this isn’t just spare change we’re talking about. These are life insurance policies, forgotten bank accounts, uncashed checks, retirement funds, and other valuable assets that have lost their connection to their rightful owners.

In my Personal Family Lawyer® Firm, we regularly see the consequences of overlooked assets and inadequate estate planning. Let’s explore how assets are lost and become “unclaimed,” how to prevent your assets from ending up in this $60 billion pool, and, most importantly, how to ensure your hard-earned assets reach your loved ones the way you want.

How Assets Become “Lost”

You might wonder how billions of dollars in assets could go missing. The truth is, it happens more easily than you’d think. Think about this: you become incapacitated or die, and someone in your family (either someone you named legally or someone chosen by a judge) has the job of finding all of your assets. Would they be able to find everything? How easy would it be for you to find everything? You know what you earned, the accounts you set up when you worked for that one company that set up a retirement account for you, got that insurance policy, etc.

When someone passes away without an updated estate plan (including a comprehensive asset inventory), we commonly see that their loved ones often have no idea what assets exist or where to find them. Those assets could eventually end up in state custody instead of going to the people you love. That money could be used to fund your children’s education, invest in a loved one’s business, or enhance the lives of the people you love most.

“Traditional” or “old school” estate planning often contributes to the problem. With an estate plan drafted by a financial advisor or lawyer who sells a will or trust rather than a comprehensive plan (or from a DIY tool like cheap legal or AI), you typically receive a set of documents to review and sign. You might take these documents home, put them on a shelf or in a drawer, and never look at them again. There’s usually no inventory of your assets, which means that some of your assets could be lost or overlooked and end up part of that $60 billion in unclaimed property.

Why an Asset Inventory and Regular Review is Crucial

As a Personal Family Lawyer® firm leader, we know that effective estate planning isn’t a one-time event - it’s a lifelong process that includes an inventory of what you have, regular updates to your inventory, and the legal documents that go along with it. My process begins with a Life & Legacy Planning® Session, where you’ll create an inventory of your assets, ensuring nothing gets overlooked or forgotten. This inventory includes not just the obvious assets like your home and bank accounts but also:

·       Life insurance policies

·       Retirement accounts from all previous employers

·       Investment accounts

·       Business interests

·       Valuable personal property

·       Intellectual property rights

·       Digital assets and cryptocurrency

Digital assets present a particular challenge in today’s world. Cryptocurrency, online banking accounts, social media profiles, and digital business assets can be especially difficult for loved ones to track down and access without proper planning. Many people don’t realize that without proper documentation and access instructions, their digital assets could be lost forever, even if their family and friends know they exist.

When you work with me, I’ll also help you keep your inventory updated throughout your life. We regularly review your Life & Legacy Plan to ensure your asset inventory stays current and properly aligns with your goals, wishes, and values. This comprehensive approach helps prevent your assets from becoming lost so they can go to the people you want in the way you want.

Beyond the Financial Impact

While creating an asset inventory is crucial, our Life & Legacy Planning process goes several steps further. It’s not enough to simply list what you own¾you need to ensure these assets are properly titled, beneficiary designations are up to date, and your loved ones know how to access everything when the time comes. We support you with it all. We will also be there for your loved ones when you no longer can.

In addition, there’s another crucial part of planning that’s often omitted from traditional or DIY planning. It’s the realization that the value of many assets isn’t financial. Family photographs stored in the cloud, emails containing important family history, and digital collections of music or art can have tremendous sentimental value. Yet without proper planning, these too can become “unclaimed property”¾inaccessible to the people meant to inherit them. When these invaluable family legacies are lost, they become another kind of unclaimed property, though their value can’t be measured in dollars.

Remember, proper estate planning isn’t just about having the right documents¾it’s about taking all the steps needed to make things as easy as possible for your loved ones. It’s the greatest act of love you can give to the people you cherish most.

Your Next Step

As your Personal Family Lawyer® Firm, we can help you create a comprehensive Life & Legacy Plan that includes a complete asset inventory, regular reviews, and updates to ensure nothing gets lost or forgotten. We’ll also help you create a Life & Legacy Interview so your most valuable assets¾your values, traditions, and love - get passed on to the people you love most. Let’s work together to protect your legacy.

Schedule your complimentary 15-minute consultation today and learn how we can help you create the right plan for your family. (859) 344-6742

This article is a service of Freedom Law Services. We don’t just draft documents; we ensure you make informed, empowered decisions about life and death for yourself and the people you love. That’s why we offer a Family Wealth Planning Session™. During the session, you will get more financially organized than ever before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this valuable session at no charge.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you seek legal advice specific to your needs, such advice services must be obtained independently, separate from this educational material.