In New York State, banks, insurance companies, and other businesses must turn over unclaimed funds (aka abandoned funds, missing funds) to the Office of Unclaimed Funds, which is part of the Office of the State Comptroller. These funds are deemed abandoned if there is no activity in the account for a specified period of time depending on the type of account, usually 2-5 years. In New Jersey, unclaimed funds are turned over to the Unclaimed Property Administration. Why does this happen? Why does money go unclaimed? Funds get turned over to the State for many reasons including: Refunds
- Typically, if an individual is entitled to a refund from a utility company, insurance carrier, or other type of account, the business will mail the check to the last address on file. However, if the individual moves without advising the business of a forwarding address, then the money sits in the account until the business is required to turn the unclaimed money over to the State.
- Believe it or not, people do forget about funded bank accounts. This money will stay with the institution until it is required to turn over the abandoned property to the State.
- At times, individuals fail to cash insurance checks, dividend checks, or a final pay check after leaving a job. If the organization is unable to located the person, the funds will eventually be considered "unclaimed funds" and transferred to the State.