Millions of dollars belonging to owners or their heirs are held by the Government Custodians and Courts. The article explains how these unclaimed monies get transferred to the Government Trust Accounts.
Agencies of State Government are holding thousands of dollars in unclaimed resources that have been passed on by credit unions and banks, courts, stockbrokers, businesses, public and insurance companies, etc. When the heirs or the owners do not make any contact with the holder of the asset during a period, the property can be stated as abandoned and gets transferred under the to the government trust account’s custody. The time is usually one to three years, and it is known as the "dormancy" period. The process of transfer is called as "escheat."
Many beneficiaries don't realize that they are entitled to get some unclaimed money, just because the successor didn't maintain or left any financial records behind. Poor record keeping is not merely the only reason since documents can get destroyed in floods, fires, and other adversities. Many people change their names following a marriage or divorce. Some of them do not inform holders about their new address after relocating to some other place; at times, they don't give details after the expiry of a postal forwarding order.
The accounting staff might make errors in computer or administrative work, for instance, a mistake in the number of a street address can bring out a decision to begin abandonment if the mail is received back as undeliverable. Though government makes an attempt in good faith to find the owners and their heirs, it's a huge issue which is verified by the quantity of unclaimed accounts and the millions of dollars that are waiting for its claimants.
As stated by the Securities and Exchange Commission, the unclaimed Investment Stocks include 10 Billion Dollars that are entitled to 3 Million owners. Life Insurance Companies declare that on the demise of policyholders, 25% out of the overall insurance policies are left unclaimed because heirs do not have any knowledge of the existence of the policy.
Missing properties that are in the custody of the Government Trust Accounts can be from the following sources:
Cashier and Travelers Checks, Rebates and Refunds, if you fail to cash these checks, then it do not adjourn your rights to collect. Although they're lost, it is still possible to reissue them.
Excess Loan Payments and Interest held in accounts such as- balance to the credit of the Accounts, Employee Savings Accounts, Trust Accounts, Layover Accounts, etc. are a vast source of unclaimed funds.
Every year Credit Cards, Prepaid Cards, Debit Cards, Gift Cards have unused balances of Millions of Dollars. Though they state "Use by" or "Good until", yet the most of them never expire.
Employee Salary or Benefits
It includes unused holiday, sick, and unpaid wages, profit sharing, bonuses, military pay and benefits, workers compensation, etc. are also some of the unpaid money sources.
One of the primary sources of unclaimed funds is investment securities like- stock certificates, stock split shares, shares from dividend conversions, interest & dividends, etc.
Some other sources from where your money can be transferred to the federal and state government unclaimed funds are insurance, home related deposits, medical, cash deposits, and proceeds from the court actions, etc. Billions of amounts from these sources remains in the government trust accounts.