State Surplus Funds and Unclaimed Property
There are several components to the workings of surplus funds and unclaimed property. This article will cover the process of finding and recovering assets.
State Surplus Funds are assets and funds whose owners have thus far been ‘unreachable’ by the holder and the government. However, keep in mind if we contacted you, MuleOne was able to find you. These funds have been turned over to the state government by the holder (banks, insurance companies, pensions, investment firms, etc.). To recover these funds, owners, beneficiaries, or their representatives must file a claim with the government.
Read on to learn more about surplus funds.
What Are State Surplus Funds and Unclaimed Property?
Surplus funds are called abandoned funds, unclaimed funds, excess proceeds, or overages. These are monies or properties that have been turned over to the appropriate government agency after they are considered to have been abandoned by their respective owners.
Common examples of unclaimed property are savings accounts, checking accounts, certified checks, uncashed checks, security deposits, refunds, and wages.
Additional examples of Surplus Funds appear below.
| Examples of Surplus Fund Items | |
| Aggregate account | Liquidating fund earnings |
| Annuities | Liquidating funds – securities |
| Bond Interest | Liquidating funds |
| Cash in lieu of fractional shares | Matured/terminated policies |
| Cashier’s/certified checks | Mineral proceeds |
| Checking accounts/demand deposits | Money Orders |
| Christmas club accounts | Municipal bond earnings |
| Collections | Municipal bonds |
| Commissions | Mutual Funds earnings/money market fund earnings |
| Court Settlements | Mutual funds/money market funds |
| Credit balances | Refunds |
| Death benefits | Rights |
| Debentures or bonds | Safe-deposit box contents |
| Dividends | Safekeeping items |
| Earthquake Insurance Refunds | Saving accounts/credit union accounts |
| Endowments | Saving bonds |
| Escrow checks/deposits/dispute | Securities |
| Garnishments | Securities exchanged for cash |
| Gift Certificates | Shares exchanged for shares |
| Inmate trust funds | Time deposits/CD accounts |
| Insurance claims checks | Traveler’s checks |
| Insurance premiums | Trust |
| Interest checks | Units |
| IRAs – securities | Vendor payments |
| Layaway Deposits | Warrants |
In California, the Unclaimed Property Law does not include real estate. Unused gift certificates are also excluded from unclaimed property and are not submitted to the state as unclaimed property.
Which States Have The Most Unclaimed Funds?
The most populous states like California, Texas, and New York have more unclaimed money than states like New Hampshire and North Dakota.
In 2021 the Sacramento Bee stated that California had over $10.2 Billion dollars in unclaimed funds. In comparison, the states of New Hampshire and North Dakota have $18.5M and $29M, respectively.
As of 2020, the United States had a total value of $49.5 Billion Dollars of unclaimed properties. The United States northeast corner has three of the top five states and five of the top ten states that have the largest amount of unclaimed property.
| Top 20 States With Unclaimed Property | ||
| Rank | State | Total Unclaimed Property |
| 1 | New York | 16,500,000,000 |
| 2 | California | 10,200,000,000 |
| 3 | Texas | 5,600,000,000 |
| 4 | New Jersey | 4,000,000,000 |
| 5 | Pennsylvania | 3,400,000,000 |
| 6 | Massachusetts | 3,000,000,000 + |
| 7 | Illinois | 3,000,000,000+ |
| 8 | Ohio | 2,600,000,000 |
| 9 | Florida | 2,000,000,000 |
| 10 | Virginia | 2,000,000,000 |
| 11 | Arizona | 1,534,930,705 |
| 12 | Maryland | 1,600,000,000 |
| 13 | Washington | 1,130,000,000 |
| 14 | Missouri | 988,000,000 |
| 15 | Michigan | 950,240,404 |
| 16 | Nevada | 950,000,000 |
| 17 | Connecticut | 915,000,000 |
| 18 | Tennessee | 890,000,000 |
| 19 | Minnesota | 700,000,000 |
| 20 | Oklahoma | 700,000,000 |
How To Find Surplus Funds
You can find a list of surplus funds or excess proceeds online. Most of the states have searchable online databases where you can instantly find out if the state is holding unclaimed property or money under your name. If the county or state does not have a searchable database, you can generate a list from court cases.
In California, the most current information, which is updated weekly, about abandoned property records is accessible using the state controller’s office (SCO) website in the “online claim services” box.
It can also be downloaded here.
Choose the link labeled “download unclaimed property records”. Moreover, the estate of deceased persons’ property records can be downloaded through the SCO’s website.
Currently, the US government does not have a central website that lists the unclaimed property. Use the following link as a tool to find an unclaimed property that may be held by various organizations. Search here.
If the county or state you are checking does not have an unclaimed list available online, you may generate a list from court cases. In some counties, they allow public access to court case records and documents where you can easily look for cases of foreclosure with an associated case number or party names, and see if they are sold in an auction and have surplus funds from the sale proceeds.
It is mandatory in some counties to file a document in court along with the deposit of the surplus funds. Surplus fund data may also be found by searching for the document title “Mortgage Foreclosure Surplus” in the court document access site.
More than 80,000 people have not claimed their pension benefits. A total of more than 30 million dollars are unclaimed. Here are the top ten states from 2018.
in million US dollars
source: https://www.pbgc.gov/about/budget-performance-and-planning/statebystate
Billions of dollars are unclaimed according to the National Association of Unclaimed Property Administrators (NAUPA). Here are some federal agencies that have the most amount of unclaimed funds.
in million dollars
*Treasury Department = $17 Billion
How Do I Know If I Have Unclaimed Funds
Many states have searchable online databases where you can instantly find out if they are holding unclaimed property or money under your name. If a state where you’ve resided doesn’t have an online searchable database, write a letter to their treasury and request that they search for you.
The best place to start searching is through the government unclaimed property websites, a multi-state database, or the state-by-state National Association of Unclaimed Property Administrators (NAUPA).
When looking for your name, consider using all potential variations, such as prior maiden or married names, middle names, initials, nicknames, and common misspellings. Look for information in the state(s) where you or your relatives have lived through time. You may be eligible to recover unclaimed property owed to heirs in some situations.
If a state where you’ve resided doesn’t have an online searchable database for unclaimed money or property, write a letter to the address shown on that state’s unclaimed money or property website and request that they search for you. Include your complete name(s), address, social security number, and contact information.
If you are in California or suspect that you have unclaimed property in that state, you can search the website of the State Controller’s Office (SCO) to see if they are holding Unclaimed Property for you.
If the information you supply matches, possible ownership may be established by the SCO. It’s crucial to realize that people with the same name may have the same address, so the property displayed may not be yours.
How To File A Claim For Surplus Funds
The process of recovering unclaimed or abandoned property, an estate from a deceased person, mortgage funds, and tax funds differ from each other. The only thing that is similar is that they have a systematic approach that is time-consuming due to the amount of paperwork and verification required.
Abandoned property
To claim the abandoned property in the state of California, according to the SCO, one must submit a claim package. Which is a package of documents that are submitted to SCO to confirm ownership and validate the request for payment of the unclaimed property.
The claimant’s package includes an investigator agreement signed and dated by the investigator and each claimant, claim for abandoned property form, a document verifying the claimant’s current address, proof of the claimant’s social security number/ tax identification number, and government identification of the claimant, via state driver license, state ID or passport.
If one fails to include all of the documents required to validate a claim, it may be returned to the investigator with a letter describing the additional documentation needed.
The table below will include the document needed by the property type. Note that only one of the documents listed for the property type may be needed.
| Document Needed By The Property Type | |
| Property Type | Documents |
| Savings or Checking Account | Account statement Bank passbook Correspondence from the bank that displays the account number |
| Stocks, Dividends, Bonds, or Debentures | Original stock certificate Original dividend check Original bond Original debenture |
| Account statement | Verification of occupancy at the registered addressProof of purchase Canceled dividend check ** May only be allowed by the SCO if the original certificate is not available |
| Life Insurance Accounts | Insurance policy Insurance statement |
| Escrow accounts | Buyer/seller closing statement Proof of residency or occupancy at the address shown on the property as reported to the SCO**** if the statement is not available |
| Negotiable instruments, Certified checks, Money orders, or Travelers Checks | Original instrument Declaration of loss under Commercial Code Sec 3312**** If the original instrument is not available |
| Safe-deposit box contents | Account statement Proof of residence**Proof of association with the reporting agency***** if statement is not available *** if proof of residence is not available |
| Social security verification | Social security card Income tax return W-2 form Pay voucher or pay stub |
| Non-English documents | Authentic translation from the embassy with embassy seal. |
To submit a claim package to the SCO, it can be done by three methods:
Via U.S. Mail
State Controller’s Office
Unclaimed Property Division
Consumer Services Unit
P. O. Box 942850
Sacramento, CA 94250-5873
Via expedite/Overnight delivery or via in-person delivery
State Controller’s Office
Unclaimed Property Division
10600 White Rock Road, Suite 141
Rancho Cordova, CA 95670
The SCO must accept a claim package within 180 days of receiving all required and submitted documentation. One of the following statuses will be assigned to the claim as it is processed; Received, Approved, Paid, and dropped.
Estate of Deceased Person
Estate of a deceased person with named heirs
According to CCP Section 1352, the designated heirs of an estate may claim the estate regardless of its valuation on a Claim for Estate of Deceased Person.
On the Claim for Estate of Deceased Person, heirs of the listed heir of an estate may claim assets valued at less than $60,000 without having to go to court. The designated heirs must file a petition under CCP Section 1355 if the estate is valued at $60,000 or more.
Estate of a deceased person without named heirs
The claimant must file a petition in the superior court of any city or county where the Attorney General has an office (San Diego, Sacramento, San Francisco, or Los Angeles) for claims of $60,000 or more for estates with no identified heirs. The claimant must transmit a copy of the petition and notice of hearing to the SCO at least 20 days before the hearing.
A claim package must also be submitted to validate the request of the deceased person. It includes documents such as:
- Standard Investigator Agreement – Estates
- Claim for the estate of a deceased person
- Birth, death, or marriage certificate of the decedent, the named heir, or both to prove that the claimant is the heir
- Latest photo identification, like driver’s license or a state-issued ID of the claimant
- Claimant’s social security number or tax identification number
- A final decree of distribution for the decedent’s estate
To submit a claim package to the SCO, it can be done three ways:
Via U.S. Mail
State Controller’s Office
Unclaimed Property Division
Consumer Services Unit
P. O. Box 942850
Sacramento, CA 94250-5873
Via expedite/Overnight delivery or via in-person delivery
State Controller’s Office
Unclaimed Property Division
10600 White Rock Road, Suite 141
Rancho Cordova, CA 95670
Upon receipt of the required paperwork substantiating the claim, the SCO will review it and approve or deny it as soon as possible.
How Long Do States Keep Unclaimed Property?
The holding period varies from state to state.
California Unclaimed Property Law
To safeguard customers, the Unclaimed Property Law was enacted. It bans unclaimed property holders (banks, insurance companies, retailers, etc.) from holding your money and utilizing it as profit.
The law gives Californians a single point of contact, the State Controller’s Office, to check for unclaimed property that may be reported by businesses across the country, and allows the State to return property, or the net proceeds from any legally required sale of the property, to its rightful owner or heirs.
Conclusion
You can check your state’s or county’s online database of unclaimed property or money to determine if you have surplus funds under your name. If your state or county does not have a database available to the public, you can write a letter to the appropriate agency holding your funds and ask if they can search for you.
You can complete the entire recovery process on your own, but hiring an experienced registered investigator like MuleOne can help ensure you recover your funds as soon as possible. MuleOne can guide you throughout the recovery process. We can give you tips and handle all the paperwork to quickly and efficiently help you claim and recover your money.
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