Unclaimed property, also referred to as unclaimed funds, consists of financial assets that have been left dormant or forgotten by their rightful owners for a statutory period of time. These assets may include bank accounts, uncashed checks, insurance proceeds, stock dividends, escrow balances, security deposits, trust funds, and other financial interests.
When property remains inactive, it is typically transferred to a government authority under escheat laws until the owner or heirs come forward to claim it. While unclaimed property is often associated with domestic claims, many cases involve international elements, including foreign beneficiaries, overseas financial institutions, or multinational estates.
How Unclaimed Property Arises
Unclaimed property may result from a variety of circumstances, such as relocation, name changes, business dissolutions, death of an account holder, or breakdowns in communication between institutions and owners. In cross-border contexts, the issue is often compounded by differences in legal systems, language barriers, and varying record-keeping standards. International heirs may be unaware of assets held in the United States, and U.S. residents may not realize they are entitled to funds held abroad. Over time, these assets may be transferred to government custody under unclaimed property statutes, where they remain until properly claimed.
Legal Framework and International Considerations
In the United States, unclaimed property is generally governed by state escheat laws, which require financial institutions and businesses to report and remit dormant assets to the state after a specified dormancy period. International recovery efforts, however, may also involve foreign succession laws, treaty obligations, probate proceedings, and compliance with anti-money laundering and know-your-customer regulations. Establishing ownership may require authenticated documentation, apostilles, translations, and coordination with foreign courts or governmental agencies.
For corporate entities and institutional claimants, international unclaimed property matters may involve tracing dormant accounts across jurisdictions, addressing currency and tax implications, and ensuring compliance with both domestic and foreign regulatory regimes. For individuals and heirs, the process often requires proof of identity, lineage, and legal entitlement, particularly when estates span multiple countries.
Strategies for Recovering Unclaimed Funds
Successful recovery of unclaimed property typically begins with a comprehensive asset search, followed by verification of ownership and preparation of legally sufficient claim submissions. In international matters, counsel may also coordinate with foreign fiduciaries, probate courts, and financial institutions to resolve conflicts of law and procedural requirements. Strategic legal representation can streamline the process, reduce delays, and ensure that claims are properly supported to withstand administrative or judicial review.
Conclusion
Unclaimed funds can represent substantial and often overlooked assets, particularly in cases involving international estates, cross-border investments, or multinational business operations.
Romano Law assists individuals, heirs, and organizations in identifying, tracing, and recovering unclaimed property in the United States and abroad. Our attorneys navigate the complex intersection of escheat law, probate, and international compliance to help clients assert their rights and secure the assets to which they are legally entitled.
Contact Romano Law to discuss how we can assist you in pursuing unclaimed property with domestic or international reach.
Contributions to this blog by Kennedy McKinney.