Over $3 billion in unclaimed funds is at the center of a stalled bill, which could provide immense relief to local homeowners if passed.
SB 403—a bill in Georgia—is designed to streamline the return of $3.3 billion in unclaimed property.
Instead of waiting for residents to claim their property themselves, the Department of Revenue would take the lead.
It’ll compare tax records with unclaimed property records to search for rightful owners, automatically issuing checks to anyone owed less than $500.
While the shift from a claim-based system to an automatic one can help some Georgians, it does come with limitations. Residents who are entitled to $500 or more would still need to file a claim, and there’s no guarantee every owner will be identified.
Whether in Georgia or elsewhere, homeowners are responsible for tracking down and claiming any funds that belong to them.
Drivers behind this change
Historically, unclaimed property systems have placed the burden on individuals, requiring them to identify what they are owed and file an individual claim.
Many people, however, never actually do this.
“Despite the billions of dollars held by state ‘unclaimed property’ programs for their citizens, most people are unaware that these programs exist or believe that unclaimed property is a scam,” says Michael Rato, attorney at ReedSmith in New York City.
That’s why states are taking a more proactive approach to unclaimed funds.
“By automatically issuing payments under $500, Georgia is removing that friction and returning smaller balances that would otherwise sit untouched for years,” says Jehan Crump Gibson, co-founder and managing partner at Great Lakes Legal Group in Southfield, MI.
Gibson explains that automatic payment initiatives like these are less about how much people are owed and more about making it easier for people to actually receive the money.
What homeowners should know
If you own a home, there’s a good chance you have unclaimed funds without even realizing it. Common examples include escrow overages, insurance refunds, utility deposits, or proceeds tied to a property that were never properly reconciled.
Since the automatic system, like the one in Georgia, won’t capture everything, be sure to check your status on your own. To do so, follow these steps:
Visit your state’s database
You can check your eligibility for unclaimed property directly through the Department of Revenue or Treasury in your state—and in any state where you’ve lived or owned property.
Rato points out that most states participate in MissingMoney.org, a website endorsed by the National Association of Unclaimed Property Administrators that can also help you find and recover unclaimed funds.
Review your most recent tax return
The Department of Revenue or Treasury in your state will likely use the name, address, and bank account information from your most recent income tax return to provide the unclaimed funds.
Confirm this information is accurate.
Update your mailing address
If you’ve moved, you’ll need to submit a change-of-address form or update your address directly with the Department of Revenue in your state. The process varies, so check your state’s guidelines.
Verify your identity
“Anytime money is being distributed—especially through a more automated system—there’s an increased risk of scams, so identity verification is really important,” says Gibson.
You can confirm your identity through a government-issued ID, such as a driver’s license or passport.
Monitor your account activity and mail
Make sure you keep your eyes peeled for checks or notices in your account. If you’re asked for additional information, respond promptly.
“You should do this once a year at the very least, and after you refinance or sell a home or switch insurers,” says Seann Malloy, attorney and founder at Malloy Law Offices in Bethesda, MD.
