Unclaimed Bank Funds: What Happens When You Leave Your Money in the Bank for 20 Years

Have you ever left money in a bank account without claiming it for an extended period? This article explores what happens to these funds and how to retrieve them. Learn about the laws and processes in different jurisdictions and how to ensure you or your loved ones benefit from these unclaimed assets.

State Policies on Unclaimed Funds

Most jurisdictions have regulations requiring banks to report 'lost' bank accounts to the appropriate government agencies after a certain period of inactivity. In the U.S., for example, if an account becomes inactive, it is typically turned over to the state controller. These funds are then placed into the general fund and may be spent by the state, but they remain your property. You can file a claim to retrieve the money at any time.

To check if there are any unclaimed funds, search for 'unclaimed funds in [your state]' online. This process can also be extended to your parent’s or relative’s unclaimed funds. The state or province maintains online search facilities that are accessible to the public.

State-Specific Regulations: Pennsylvania

In the state of Pennsylvania, as of the latest information available, funds are transferred to the state treasury after a period of inactivity. This applies to banks, stocks, and other accounts. You can file a claim to retrieve your money at a later date. For personal instances, the author has successfully claimed funds for a relative. It is advisable to always keep track of your accounts to avoid them going dormant.

The government of Canada also has rules for 'dormant' bank accounts. After 10 years of inactivity, the funds are sent to the Bank of Canada, who then hold the funds. Many banks might also impose fees for these inactive accounts.

Preventing Account Dormancy

To prevent your account from becoming inactive and being transferred to the state treasury, ensure you make at least one transaction per year. This can be a small deposit or withdrawal. This practice is also important for interest-bearing accounts as some financial institutions might extract as many fees as allowable under the statute.

Legal Considerations

It is crucial to ensure your wishes regarding unclaimed funds are clearly documented. A Last Will and Testament can help you specify how your estate should be handled after your death. If you do not have a will, the funds may revert to the state as the default heir.

Ensure you maintain an up-to-date will and have it witnessed or notarized. Here is a simple Last Will and Testament template:

‘Last Will and Testament By: [Your Name Here]’
‘I, [Your Name], being of sound mind and competent to make this declaration and testament of my Will regarding the disposition of my Estate upon my natural death by Law’
‘/s/ By: ___________________________’
‘Date: ______________________’
‘Witness: _________________________’
‘Witness: _________________________’
‘Witness: _________________________’
‘____________________ state’
‘____________________ county’
‘Public Notary: _________________________’
‘[Date: ____________________ .’
‘[Seal]’

It is also a good idea to inform a trusted family member or a friend of the whereabouts of any unclaimed funds or your will in case of your passing.

By staying informed and proactive, you can ensure that any unclaimed funds are properly claimed and secured for you or your heirs.