We have recently learned of various companies offering to help you reclaim surrendered funds/assets held by the State – for a fee. In the following paragraphs, we will explain why the State would be holding your funds/assets and how to reclaim them yourself, free of charge.
Escheatment is the process where custodial ownership of unclaimed property such as bank, investment, or retirement accounts, uncashed payroll or refund checks, safety deposit box contents, or other types of funds or assets are transferred to the State when the owner cannot be located after a specified period of time. In Michigan, the timeframe (known as the dormancy period) is one year for uncashed payroll checks and three years for other funds/assets. Once the dormancy period has passed, the business/organization holding the funds/assets sends them to the State for holding until they are claimed by the owner or their heirs. Michigan has no limit on the amount of time you have to claim your surrendered funds/assets; however other states may differ.
Michigan does reserve the right to liquidate securities and other investment accounts after taking custodial ownership. Michigan also reserves the right to periodically auction off unclaimed assets after at least two years of remaining unclaimed. Examples of items auctioned off are safety deposit box contents, jewelry, coins, and other valuable items. The State then holds the cash equivalent until the funds are claimed.
Where and How to File a Claim for Unclaimed Funds and Assets
Each state has its own process and requirements for claiming your funds/assets that have been surrendered to them. Michigan claims are processed through the following website: https://unclaimedproperty.michigan.gov/
When you access the website, you must enter your last name or business name. To narrow the search, you can include your first name, city, or zip code. If you locate your name, you will select the Claim button and then Continue to File Claim button. Add your relationship to the claim and then select File Claim. You will be required to provide additional information to confirm your identity, such as your address, social security number, and date of birth. The State may take up to 90 days to process your claim and an additional 6 weeks to send you the released funds or assets.
When you search for your name, other individuals or businesses with similar names may show up, so use your best judgement to consider if the reporting company listed in the claim is one you had an account or business with to determine if you are the correct owner.
If you know you have unclaimed property, but it doesn’t show up, it might be in a previous city where you lived or worked.
In many cases, this process can be completed in less than 15 minutes and by claiming the property yourself, you can avoid a fee from a third-party company.
Our advisors are happy to help answer any questions you may have or to discuss this in more detail. Contact us today!
