Windfall: the joy of unclaimed property

You’ve probably seen the ads that encourage you to search for unclaimed money. It sounds like a scam, but there’s some truth to this one. State governments are holding more than $40 billion nationwide for people like us. Tennessee alone holds $994 million.

I searched for unclaimed money in my own name and found none (naturally), but I did locate $450 for my mother, and $350 for one friend and a whopping $864 for another. (I’m a good friend.)

It’s free and easy to search, so why not give it a try? Here’s how:

Why would I have unclaimed money?

Each state has an agency that holds unclaimed property. When a business owes you money, it must try to return the money to you. If it cannot find you, the business must surrender the money to the state agency in charge of unclaimed property.

The most common scenario: You move but forget to close out a small bank account or fail to ask the power company to return your deposit. That money just sits there until you return to claim it.

If you’ve moved even a few times—especially if you’ve got family in the military—I urge you to check.

How to claim the money

Every state’s website has a free unclaimed property search, so search this website in every state in which you have ever lived. You can search for yourself or anyone else, but you will only be able to claim money in your own name.

In Tennessee, it’s https://treasury.tn.gov/Unclaimed-Property/Claim-Unclaimed-Property/Find-Your-Missing-Money

Once you navigate to that state’s website, you’ll do a quick name search. The results are returned immediately—usually a list of names and cities. If you’re listed there, the website gives you simple instructions to claim the money. Typically, you fill out a form and sign it (an affidavit) and mail it to the agency with documentation such as a copy of your driver’s license to verify your identity. (A few states allow you to submit the affidavit and documentation online and receive your funds by direct deposit.)

All states participate in a nationwide database, but there is a lag time for reporting to this database, so it’s best to search the nationwide website and then follow up with each state’s website to be sure. To search nationwide, go to http://www.unclaimed.org/

Once your claim is processed, the check comes in about four weeks.

Avoid scams

It’s free and simple to claim your money, so there’s no need to pay a third party to help you with this task.

Some legitimate websites, such as creditkarma.com, will help you search, but only a few states have partnered with them. It’s best to go directly to the state’s website, and of course make sure the website ends in .gov.