Why So Much Money Ends Up as Unclaimed Property and What That Means for Your Family

Every year, billions of dollars quietly sit with state governments, waiting for someone to claim them.

Not because the money was abandoned.
Not because the owners didn’t care.
But because no one knew it was there, or no one knew how to access it.

February 1 is National Unclaimed Property Day, a reminder of a problem we see more often than most families realize. Money, accounts, and even personal property can slip through the cracks when life changes, someone moves, or a loved one passes away.

At Freedom Law Services, we help families make sure what they’ve worked hard for doesn’t get lost in a system that was never designed to protect your legacy. Understanding how unclaimed property happens is the first step toward preventing it.

What “Unclaimed Property” Really Means

When people hear “unclaimed property,” they often picture abandoned houses or forgotten land. In reality, unclaimed property is usually much more ordinary and much easier to lose track of.

Unclaimed property is money or assets that have had no activity for a period of time, typically one to five years depending on state law. When a bank, employer, insurance company, or financial institution can’t reach the owner, they are legally required to turn the property over to the state. This process is called escheatment.

The state does not own the property. It simply holds it until someone proves they are entitled to it.

Some of the most common types of unclaimed property include:

• Old checking or savings accounts you forgot about

• Uncashed refund checks or payroll checks

• Security deposits from a prior rental

• Stocks, dividends, or mutual funds purchased years ago

• Life insurance benefits beneficiaries never knew existed

• Contents of abandoned safe-deposit boxes

We’ve seen families surprised to discover money that belonged to a parent or spouse sitting with the state for years. Not because anyone did anything wrong, but because no one knew where to look.

How Assets Get Lost Even When You’re Responsible

Unclaimed property doesn’t just happen to disorganized people. It happens to families who are busy living their lives.

Jobs change. People move. Accounts are opened online and managed digitally. Paper statements disappear. Passwords are forgotten. Names change due to marriage or divorce.

Then, when someone dies, loved ones are left trying to piece together what exists and where it is. Without a clear inventory or plan, accounts can be missed entirely.

Across all 50 states, governments are currently holding an estimated $70 billion in unclaimed property. Each year, states return billions to rightful owners, yet the total amount continues to grow. That tells us something important: this problem is becoming more common, not less.

Modern life is fragmented. Most people have multiple banks, investment firms, retirement accounts, insurance policies, and employers over a lifetime. If no one knows what exists or how to access it, assets don’t automatically find their way to your family.

Why National Unclaimed Property Day Exists

National Unclaimed Property Day was created to encourage three things.

First, it reminds people to search for property that may already belong to them.

Second, it educates families about how easily assets become unclaimed, even when intentions are good.

Third, and most important, it highlights the need for better planning so families don’t lose track of what matters most.

February 1 is intentionally early in the year. It’s a reset moment. Before tax season. Before another year goes by with assets sitting idle instead of helping the people they were meant to support.

The message is simple: check, claim, and prevent.

What You Can Do Right Now

The quickest step you can take today is to search for unclaimed property in your name.

Every state maintains a free, searchable database. You can search by name on the treasurer or comptroller’s website for each state where you’ve lived or worked. If you’ve moved over the years, search every state tied to your past addresses or employment.

There is no fee to claim property. If you find something that belongs to you, the state may ask for identification and documentation to confirm ownership. If you are claiming property for a deceased loved one, you will likely need a death certificate and proof of your authority to act on behalf of the estate.

That process can be time-consuming, and claims are sometimes denied. Which is why prevention matters far more than recovery.

How Estate Planning Prevents Assets from Becoming “Lost”

At Freedom Law Services, we focus on making sure your family never has to go searching for what you already owned.

A well-done Life & Legacy Plan includes a clear, organized inventory of your financial life. That means documenting bank accounts, investment accounts, retirement plans, life insurance policies, beneficiary designations, and other assets. It also means identifying where those records are kept and who can access them when needed.

We help families:

• Create and maintain a complete asset inventory

• Store information securely but accessibly

• Designate trusted decision-makers

• Review and update plans as life changes

Just as important, we make sure your plan works when it’s needed. Too many families discover too late that documents alone don’t guarantee clarity or access. Systems matter.

We also encourage simple habits that reduce risk over time, like keeping contact information updated with financial institutions and consolidating accounts when appropriate. Fewer accounts mean fewer opportunities for something to be forgotten.

The Bigger Picture for Your Family

National Unclaimed Property Day shines a light on a quiet truth. If no one knows what you have, where it is, or how to access it, your assets can disappear into bureaucracy.

The real goal isn’t just reclaiming forgotten money. It’s making sure nothing you worked for ever becomes lost in the first place.

Taking a few minutes to search for unclaimed property is a smart first step. Taking the time to organize your financial life is the step that truly protects your family.

How We Help You Protect What Matters Most

As a Personal Family Lawyer® firm, Freedom Law Services helps families create comprehensive Life & Legacy Plans that keep assets out of court, out of conflict, and out of state custody.

We don’t just draft documents. We help you make informed decisions, organize your financial life, and put systems in place so your loved ones are never left guessing.

This February 1, do more than check a database. Take the step that ensures your family’s time, money, and memories stay exactly where you want them.

Book a free 15-minute Discovery Call with Freedom Law Services today in our Crestview Hills, KY office. Together, we’ll create a Life & Legacy Plan that protects your time, your money, and most importantly, your family.

Call us at (859) 344-6742 or visit www.FreedomLawServices.com/call-today to book your discovery call today.

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 which 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.