Interesting Facts About Unclaimed Investments & What Happens To Them!

Unclaimed investments typically refer to investments that have been abandoned or forgotten by their owners and have not been claimed for a prolonged period of time.it is generally acknowledged that unclaimed investments represent a significant amount of money worldwide. In the United States, for example, according to the National Association of Unclaimed Property Administrators estimates that 33 million altogether — collectively have around $70 billion worth of unclaimed assets being held by state treasurers. Similarly, in the United Kingdom, the government's unclaimed assets scheme estimates that there may be billions of pounds in unclaimed investments, including shares, bonds, and pensions. 

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The image depicts unclaimed bank deposits as of the year 2020 in India.

Interesting facts about unclaimed assets or investments:

1. There is an estimated $100 billion in unclaimed assets in the United States alone, according to the National Association of Unclaimed Property Administrators (NAUPA).
2. Unclaimed assets can include not only bank accounts, but also life insurance policies, retirement accounts, uncashed checks, and more.
3. Some states have unclaimed property auctions, where unclaimed assets are sold to the highest bidder. These auctions can be a way for investors to potentially buy valuable assets at a discount.
4. Unclaimed assets are often referred to as "sleeping money," as they are essentially dormant and not being used by the rightful owner.
5. Unclaimed assets can sometimes be inherited by the heirs of the original owner, even if they were unaware of the assets.
6. Many unclaimed assets are the result of people moving and not updating their contact information with their financial institutions, or simply forgetting about accounts they had opened.
7. In some cases, financial institutions may not have been aware of an individual's death and continued to send statements to the last known address, resulting in unclaimed assets.
8. Some financial institutions have online search tools that allow individuals to check if they have any unclaimed assets or investments associated with their name.
9. The process for reclaiming unclaimed assets can vary depending on the jurisdiction and the type of asset, and it is important to be aware of the requirements and deadlines for claiming such assets.

Know interesting facts about what happens to an investment that has been forgotten or unclaimed, What do financial institutions like banks do with unclaimed assets?

What do financial institutions do with unclaimed money?

Banks and other financial institutions are usually required by law to hold forgotten or unclaimed bank accounts, life insurance policies, mutual funds, and other assets for a certain period of time before they are considered abandoned. The length of time may vary depending on the jurisdiction, but it is typically several years.

During this time, the financial institution is required to make reasonable efforts to locate the account or policy owner or their heirs, such as sending letters to the last known address, calling or emailing the owner, or searching public records. If the financial institution is unable to locate the owner, they may turn over the assets to a government agency, such as the state treasury or unclaimed property office. The government agency then becomes the custodian of the assets and holds them until they are claimed by the rightful owner or their heirs.

• In the case of life insurance policies, the insurer may also be required to perform a periodic search of the Social Security Death Master File to identify policyholders who have passed away and locate their beneficiaries.
• In the case of provident funds (PF) or retirement accounts, if the owner has not claimed their funds after a certain period of time, they may be considered abandoned and turned over to a government agency or held by the financial institution.
• If you believe that you have an unclaimed asset, such as a forgotten bank account, life insurance policy, or mutual fund, it is important to check with the relevant government agency or financial institution to see if any unclaimed assets are associated with your name. You may need to provide proof of identity and ownership to reclaim the assets.

To sum up,

The above-mentioned are some of the aspects that happen to unclaimed investments, assets, or money. You surely don't want your valuable assets and hard-earned money to go unclaimed so, it is better to adopt measures that can prevent that from happening. Employing Family Wealth Asset Management will not only safeguard your wealth but also help get your wealth to your family. Connect with the team of My Wealth Locker for Financial Data Protection and Secure Investment Document Repository.