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By Simon Volkov
Unclaimed inheritance from wills refers to property and cash which has been bequeathed to heirs from a person who has died. Each year billions of dollars in inheritance property goes unclaimed. The most common reasons heirs are not notified of inheritance assets stems from name and address changes.
The most common source of unclaimed inheritance from wills is life insurance proceeds. Estate executors contact life insurance companies to claim beneficiary benefits. Funeral homes provide death certificates to life insurance providers and benefits are paid to designated beneficiaries. If heirs or estate administrators are unaware the policy exists, life insurance providers have no way of knowing the policyholder has died.
Unless decedents have placed inheritance property inside a trust, their estate must undergo the probate process. Probate is required in all 50 states and is necessary to validate decedents’ last will, settle outstanding debts, and transfer inheritance assets to heirs. If decedents die without executing a will, a judge distributes inheritance property according to probate law.
During probate, the estate executor must attempt to locate missing heirs. This is usually addressed by placing Classified ads in local papers. If heirs cannot be found inheritance property is held by the state to give beneficiaries the opportunity to present entitlement claims.
Unclaimed inheritance from wills must be held for a specific timeframe before property is considered legally abandoned. Dormancy periods are established by each state and typically range between one and five years. Dormancy periods may vary depending on the type of inheritance property involved.
After dormancy periods expire, unclaimed inheritance from wills is transferred to government property trust accounts. This is referred to as ‘escheat.’ In 2009, more than $20 billion in unclaimed inheritance property was transferred to state escheat. Of that amount, less than $900 million was claimed by rightful heirs. The balance of escheat property remains in state trust accounts across the nation.
Some states hold escheat property indefinitely, while others place a specific timeframe for beneficiary claims. In the states of Indiana and Idaho, if property goes unclaimed beyond the escheat period it becomes property of the state and heirs can no longer lay claim to it. Therefore, it is important to check unclaimed money databases on a regular basis.
Most states have unclaimed money databases that can be searched at no-cost. In most states, unclaimed inheritance property is held through the Department of Revenue. To locate the DOR in your state, type in “department of revnue+your state” at your favorite search engine. Or, type in “unclaimed money+your state.”
There are several companies that charge a fee to help beneficiaries locate unclaimed money and inheritance property. These companies charge a finder’s fee which generally hovers between 30- and 40-percent of the total value of found property. For instance, if a company found $5,000 in unclaimed money their fee would range between $1500 and $2000.
One trusted source for locating unclaimed inheritance from will is FinalArrangementsNetwork.com. This website provides unclaimed property records for all 50 states and does not charge a fee for searching databases.
It never hurts to search online databases for unclaimed money. In addition to locating inheritance money, individuals can determine if they have money owed to them from closed checking or savings accounts, utility deposits, or life insurance policies.
About the Author: California real estate investor, Simon Volkov provides a personal finance article library covering a wide range of topics. Visitors can learn how to locate unclaimed inheritance from wills, avoid probate, establish estate planning strategies, and protect inheritance assets. Learn more at SimonVolkov.com.
Source: isnare.com
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