Unclaimed Inheritance from Wills

Locating unclaimed inheritance from Wills can be a time-consuming process, but it doesn't have to be. It's just a matter of learning where the information is located and the process for claiming money or property.

Unclaimed inheritance from wills can stem from many reasons. People often execute their last will and testament and never update them. This can make locating heirs difficult if they change their name or relocate to another state or country.

Life insurance policyholders designate beneficiaries to receive cash benefits. If changes occur and policies are not updated the life insurance company doesn't expend time attempting to locate recipients. Instead, funds are transferred to the estate and placed into escheat.

Policyholders often take out life insurance policies to cover funeral expenses. Beneficiaries assign their rights to proceeds to the funeral home. Once burial expenses are paid funeral homes remit invoices to the life insurance company and remaining proceeds are distributed.

If the estate administrator is unaware that an insurance policy exists, there is no way to notify the insurance carrier. Once policies become dormant, insurance companies turn proceeds over to the state. The state places funds into escheat to provide beneficiaries time to lay claim.

Heirs may also be entitled to inheritance property bequeathed through the probate process. Probate is used within the United States to settle decedent estates. The last will provides directives as to how assets should be distributed. If decedents die without leaving a Will inheritance assets are distributed according to state probate law.

Regardless of whether inheritance property is bequeathed via a last Will or probate laws, unclaimed property must be held for a predetermined amount of time. This is referred to as the dormancy period and holding time varies by state. The average duration ranges between 1 and 5 years. However, this can vary depending on the type of property involved.

If property held in escheat remains unclaimed after the dormancy period expires, unclaimed property is transferred to state trust accounts. Government reports claim more than $20 billion in unclaimed inheritance property was transferred to escheat in 2010. Of that, less than 10-percent of property was claimed.

Beneficiaries lose their right to claim property once escheat periods expire. Instead, assets are transferred to the state and often sold through public auctions. Proceeds are given to the state.

Anyone with deceased relatives should take time to research unclaimed property databases. Nearly every state provides public record databases that can be accessed at no charge. Inheritance property is usually retained by each state's Department of Revenue.

The Internet is a great source for conducting research. Start by using keyword phrases such as "unclaimed money databases" plus your state of residence. One good source that offers state-by-state databases at no charge is the Final Arrangements Network.

Some people prefer to use the services of private investigators that specialize in locating missing property. These services can be costly with fees ranging upward of 40-percent of the value of located property.

Try searching online databases for unclaimed inheritance from Wills first. You never know what you might find. In addition to locating inheritance gifts from long-lost relatives, you might also find money from defunct bank accounts, utility deposits, or refunds from mortgage insurance.