Key facts
- States collectively hold over $100 billion in unclaimed property.
- Unclaimed property includes forgotten bank accounts, old paychecks, tax refunds, and insurance payouts.
- New York holds over $20 billion, California about $15 billion, and Texas about $10 billion.
- Some states use vague descriptions like 'over $250' for unclaimed amounts.
- Claim processes can be bureaucratic and require extensive paperwork.
- Some states do not pay interest on unclaimed funds they hold.
The article criticizes state-held unclaimed property systems, describing them as a 'tax on forgetfulness.' States collectively hold over $100 billion in assets like forgotten bank accounts, uncashed tax refunds, and insurance payouts. Major states like New York ($20 billion), California ($15 billion), and Texas ($10 billion) are holding significant amounts. The author highlights that states benefit from these funds by earning interest and using them for public programs, while the process for individuals to reclaim their money is often vague and bureaucratic. Some states do not list exact amounts owed, using phrases like 'over $250,' and require extensive documentation. For example, New Jersey and Michigan do not publicly list claims below certain thresholds. California does not pay interest on unclaimed funds. Senator Elizabeth Warren is demanding answers and advocating for reforms to increase transparency, such as publishing exact dollar amounts for all claims.