After someone passes away, the estate of the decedent will be administered through the probate courts. In most cases, the assets will be discovered, inventoried and eventually distributed to the rightful beneficiaries. Sometimes it does not happen that easily. In some instances, assets may be overlooked or a beneficiary fails to claim the inheritance. Money can end up as “unclaimed” in many different ways. A few examples include not receiving past wages, life insurance policies and tax refunds.
Banks and other financial institutions will turn over the assets after three years to the Comptroller of Maryland. This may be in the form of cash from accounts, stocks or even personal property left unclaimed in safe deposit boxes. The rightful owners can come forward at any time to claim the property. There is no statute of limitations imposed. Maryland's unclaimed property law is custodial, meaning that there is no time limit on claiming the money that is rightfully yours. You may claim the funds any time, and legitimate heirs may claim the funds after the original owner's death.
The Comptroller’s office uses many resources to attempt to track down rightful owners and their heirs. They maintain a website with a free online search tool. They also advertise in newspapers, send out mass mailings and publish info on social media. They even attend trade shows and set up booths in shopping malls. The Comptroller, as custodian, diligently attempts to reconnect these assets with the appropriate owners. Over the years, the Comptroller of Maryland has reunited over $1 billion in cash and other assets to the rightful owners.
In Possession of Unclaimed Property?
Anyone in possession of unclaimed property must report it in a timely manner to the Comptroller. Effective July 1, 2005 due diligence letters must be sent to accounts/owners with amounts of $100 and up to their last known address in an attempt to notify the persons/businesses of the unclaimed funds.
Rightful Owner of Unclaimed Property?
When an individual or business learns that unclaimed money exists, they begin the process of claiming the property by filling out a claim form. For more information, email the Comptroller’s office at unclaim@marylandtaxes.gov.
How to Prevent Your Property from Becoming Unclaimed
As part of your comprehensive estate planning process, thorough attorneys will help you inventory your assets and draft language that includes future assets and residual property to help avoid a situation where any assets are overlooked or not properly distributed during probate. They will also assess the beneficiaries named and include contact information as well as distinguishing information so they can easily be identified and found in the future. To get started on a comprehensive estate plan, contact the attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599 or emailing us at office@stoufferlegal.com.
