Some People Really DO Find Money

Every once in a while, someone goes through an old drawer and makes a surprising discovery. Perhaps the individual is cleaning out the home of a deceased relative and finds a bank or credit union statement, canceled check or safe deposit box key. This is evidence that an account or other valuables once existed.

bank account files

But the discovery leads to some questions. Does the account still exist or was it closed? What's the value? Is the bank or credit union still in business? Who really owns the money? These are questions that financial institutions try to help customers answer every day. According to the Federal Deposit Insurance Corporation (FDIC), the process is pretty straightforward in the majority of cases. Here are ten considerations:

1. If you have the name of the bank, use an Internet search engine to determine if the bank is still in business. If it's open, give them a call and ask if the institution has a record of the account. They should, unless it's been closed for a very long time.

2. You'll need documentation. Banks aren't permitted to disclose personal information without proper identification and paperwork that gives someone a right to know. For example, if you have a copy of the death certificate, and perhaps a copy of the will showing you're the executor or a beneficiary, or hold a Power of Attorney document, banks should be able to assist you.

3. If the bank still has the records, an officer there may be able to tell if the account is still active and how much money is currently in the account. The officer may also know if the account was closed and when, or whether the money was handed over to the state government as abandoned funds at the end of a legal waiting period for inactive accounts.

4. The state may have the money. The easiest way to search for this money is to go right to the website missingmoney.com run by the National Association of Unclaimed Property Administrators. This site can link you to every member state's website for unclaimed funds. Other sites make these public records available online but often attach a fee to both the search and filing for documents.

5. If the bank has failed recently, the FDIC or other federal agencies handling the closure may have taken possession of the bank's assets. Under U.S. law, this money is returned to the states after 18 months, and safe deposit box contents are returned to the state after one year, at which time you can search for the unclaimed property online.

6. Fill out a claim form and submit proof of ownership to the state's office of uncollected funds in order to receive the money or property that it holds. The claim form generally lists the required documentation. The state's office will tell you if your documentation is sufficient and make recommendations if it's not.

7. After a period of time, states often sell unclaimed property. This is generally done only to reduce storage space. Public auctions are held, and property is sold to the highest bidder. Citizens with valid claims may be able to file paperwork to receive the proceeds from the sales of their assets — in the event the assets no longer belong to the state.

8. Remember that "an ounce of prevention is worth a pound of cure." The best way for your heirs to avoid a property search is to keep your financial records in one place and to keep a master list of your accounts. Update it every year with notes on closings, assets, etc. It may be wise to give a copy to a trusted relative, your accountant, or your attorney as a safeguard. When you close an account, shred all documents for it, unless they're in with your tax records. This prevents you from sending your relatives on an unproductive paper chase.

Also, cash all checks as soon as possible and respond to all printed requests for confirmation of account balances and shareholder proxies so that your accounts are kept current. Prepare a will to specify heirs for your assets, no matter how modest. With an account left unattended for years, interest may compound significantly.

9. Keep in mind that large sums remain unclaimed. According to the National Association of Unclaimed Property Administrators (NAUPA), "there are literally billions of dollars in unclaimed property, held by state governments and treasuries within the United States." In most states, these funds will remain available indefinitely to original depositors and their heirs.

10. States may be searching for you too. According to NAUPA, state treasurers and unclaimed funds offices often publish lists of unclaimed funds in newspaper advertisements and provide the list to other media outlets to encourage people to check for "found" money that may actually belong to them or to a departed relative.

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