What You Should Know About Escheating

Beneficiaries should benefit from the funds of life insurance policies: state treasury departments shouldn't. Depending on the individual state's escheat laws, heirs of the deceased can spend years retrieving monies from the state unclaimed funds department while the state uses those funds to cover expenditures. With the help of Unclaimed Assets, beneficiaries can collect funds due them now. In cases where the beneficiary is also deceased, we contact the estate and the next-of-kin, in accordance with company distribution policy, and assist in the correct distribution of the benefit.

State Fund-Owner Reunification Efforts

• By statute, the majority of states are required to perform a one-time advertisement of the name/address of the owner in the county paper of the owners last known address.
• Utilizing the media to announce or list owners as a public service announcement;
• Renting a booth at the State Fair and using this resource to both educate and reunite the public with unclaimed funds;
• Speaking at various public events/clubs/meetings;
• Working cooperatively with other states to collect and transfer property reciprocally;
• Utilizing resources from other governmental agencies to help locate an owner (Drivers license, social security administration, etc.)
• The Internet

Since 1989, our staff has been surveying the various state unclaimed property departments. Very few states are willing to discuss the amount of money that is escheated and how much is distributed each year. In our surveys, no state was willing to release information about use of undistributed funds.

State Unclaimed Property Departments – 2003 Fiscal Year

Alabama	$34,500,000 in	$11,900,000 out	=34%
Alaska	$4,500,000 in	$1,500,000 out	=33%
Colorado	$40,000,000 in	$10,000,000 out	=25%
Hawaii	$14,900,000 in	$2,700,000 out	=18%
Maine	$21,800,000 in	$7,900,000 out	=36%

• Nearly all states were surveyed. Many will not release information because of poor distribution record.
• Statistics are for last year of information the states will release.