When Sarah Jenkins lost her father unexpectedly, her family was left with not only the grief of his passing but also the daunting task of managing his financial affairs. Amid sorting through paperwork and estate documents, Sarah’s attorney suggested conducting an escheated property search.
The results were surprising: her father had unclaimed funds from an old savings account and a life insurance policy that the family had no idea existed. Thanks to this search, the Jenkins family recovered thousands of dollars that could have easily remained lost to the state.
What are Escheated Searches?
An escheated search involves looking for unclaimed property that was turned over to the state after being abandoned or unclaimed for a specific period. This property can include bank accounts, stocks, uncashed checks, life insurance payouts and even the contents of safe deposit boxes. When individuals fail to claim these assets — often due to a lack of knowledge or oversight — the property is escheated to the state.
Each state maintains a database of unclaimed property, and these databases are often accessible online.
Why Conduct an Escheated Search After a Loved One’s Death?
When a loved one passes away, it’s easy to miss assets that are not immediately apparent. In some cases, the deceased may not have disclosed the existence of certain accounts, investments or other financial assets. Conducting an escheated search ensures that no property is overlooked, which can be crucial for:
- Maximizing the Estate’s Value: Unclaimed property can significantly enhance the overall value of the estate, benefiting heirs and beneficiaries.
- Ensuring Fair Distribution: Identifying all assets helps ensure that the estate is distributed according to the deceased’s wishes or, in the absence of a will, according to state laws.
- Avoiding Legal Complications: Recovering escheated property early in the probate process can prevent delays and disputes among heirs.
Tips to Prevent Escheated Property in Your Own Estate Plan
- Keep Records Up to Date: Maintain an accurate and comprehensive list of all financial accounts, investments and assets. Update this list regularly and share it with a trusted family member, estate executor or your estate planning attorney.
- Consolidate Accounts: Simplify your finances by consolidating accounts where possible. Fewer accounts reduce the risk of assets being forgotten or overlooked.
- Review Beneficiary Designations: Ensure that all accounts, insurance policies and retirement plans have current and correct beneficiary information.
- Work with an Estate Planning Attorney: A professional can help you create a comprehensive estate plan and conduct a thorough escheated search, reducing the likelihood of assets being missed or escheated.
Unclaimed property doesn’t just represent lost money; it’s also a lost opportunity to provide for your loved ones. By keeping thorough records, updating your estate plan and educating your heirs, you ensure that your hard-earned assets are preserved and passed on as intended. Additionally, addressing these issues now prevents your family from the stress and uncertainty of recovering escheated property during an already difficult time.
The Jenkins family’s story is a reminder that even small oversights can lead to significant financial losses. Conducting an escheated search after a loved one’s passing — and taking proactive steps to avoid unclaimed property in your own estate — is a simple but powerful way to safeguard your legacy.
