How to Claim Unclaimed Money in Alabama Through the State
Learn how Alabama residents can recover forgotten financial assets through a structured state process, including eligibility and filing steps.
Millions of dollars in unclaimed money sit untouched each year in state treasuries across the U.S., including Alabama. These funds often belong to individuals unaware they are owed anything, perhaps from a forgotten bank account or an uncashed refund check.
For Alabama residents, a process exists to discover if any of this money belongs to them and how to retrieve it. Understanding this system is key to recovering potential assets.
Definition of Abandoned Property
In Alabama, property is considered abandoned, or unclaimed, when the owner has not contacted the entity holding the asset or shown interest in it for a specific time, known as the dormancy period. The Alabama Uniform Disposition of Unclaimed Property Act governs this process.1Alabama State Treasury. Alabama Uniform Disposition of Unclaimed Property Act
Property is presumed abandoned if it remains unclaimed by its owner throughout this legally defined dormancy period.2Legal Information Institute. Ala. Admin. Code r. 892-2-1-.02 – Definitions Lack of owner-initiated contact or activity is the trigger. The length of the dormancy period varies depending on the type of property. Once this period passes without owner contact, the property must be reported and transferred to the state.
Common Categories of Funds
Various financial assets can become unclaimed property if the owner cannot be located or does not interact with the asset for the required dormancy period.
Checking and Savings Accounts
Bank accounts are a significant source of unclaimed funds. Under Alabama law, checking and savings accounts are typically presumed abandoned three years after the owner’s last indication of interest, such as a deposit, withdrawal, or communication with the bank.3Alabama State Treasury. Alabama Dormancy Period Guide If no such activity occurs within three years, the financial institution must turn the funds over to the Alabama State Treasurer’s Unclaimed Property Division. This includes standard deposits and time deposits like Certificates of Deposit (CDs) after maturity.
Uncashed Checks
Checks issued but never cashed or deposited frequently become unclaimed property. These can include payroll checks, vendor payments, refunds, insurance payments, or dividends. The dormancy period varies: wages are presumed abandoned after one year, while many other types, like vendor payments or official bank checks, have a three-year period. Money orders have a five-year dormancy period, and traveler’s checks have fifteen years.
Other Financial Assets
Other assets also fall under unclaimed property laws. Securities like stocks and bonds are presumed abandoned after three years of inactivity, as are associated dividends. Insurance proceeds generally have a three-year dormancy period. Utility deposits become unclaimed after one year. The contents of safe deposit boxes are presumed abandoned three years after the lease expires; tangible items (excluding firearms or controlled substances) may eventually be auctioned by the state if unclaimed. Mineral proceeds also have a three-year dormancy period. Certain gift certificates may become unclaimed after three years, though some retail exemptions apply.
State Agency Role
The Alabama State Treasurer’s Office, through its Unclaimed Property Division, manages the state’s unclaimed property program. Designated by the Alabama Uniform Disposition of Unclaimed Property Act, the agency acts as the custodian for assets separated from their rightful owners.4Alabama Legislature. Alabama Administrative Code 892-2-1-.01 – Authority
The division receives reports and property from entities like banks, insurers, and businesses obligated to turn over assets presumed abandoned after the relevant dormancy periods. The Treasurer’s Office safeguards these assets, including funds, securities, and tangible items from safe deposit boxes.
A primary function of the agency is to locate and return these assets to the owners or their heirs. The State Treasury maintains a publicly accessible online database for individuals to search for potential claims.5Alabama Unclaimed Property. How to Search for Unclaimed Property The office also conducts outreach efforts to reunite owners with their property.
The Treasurer’s Office establishes the rules for the program, guiding how property is reported and how claims are filed.6Alabama State Treasury. Alabama Unclaimed Property Program Rules It also has the authority to audit entities to ensure compliance. If property remains unclaimed after required efforts, the Treasurer manages its disposition, potentially including public auctions for tangible items, with proceeds held for the owner.
Filing Procedures
To claim unclaimed property in Alabama, individuals should start by searching the official Alabama State Treasurer’s Unclaimed Property Division website. Users can enter their name or a business name to check for held assets, refining the search by city if needed. If a potential match is found, selecting the “Claim” button initiates the formal process.
Claimants must then complete and submit an official claim form along with required supporting documents.7Legal Information Institute. Ala. Admin. Code r. 892-2-1-.08 – Claim Process Standard requirements include the signed claim form generated online, a copy of government-issued photo identification, and proof of the claimant’s Social Security number. The Treasurer’s Office will specify the exact documentation needed, often via email and on the claim form itself. Using only official forms is crucial.
Documentation needs vary based on the claimant’s relationship to the original owner and the property type. For example, heirs of a deceased owner may need specific affidavits, especially for smaller estates (valued at $3,000 or less). If proof of the last known address is unavailable for property valued at $300 or less, a specific affidavit might be required. All documents must be in English and mailed to the Alabama State Treasurer’s Unclaimed Property Division in Montgomery.
Upon receiving the claim package, the division reviews the materials.8Alabama Legislature. Alabama Administrative Code 892-2-1-.09 – Examination of Claims The claimant bears the burden of proving ownership or rightful inheritance by a preponderance of the evidence. If the claim is approved, the Treasurer’s Office processes the payment or delivery of the property. If denied, the office must provide written notice explaining the reasons and what additional information might be needed. Claimants typically have 90 days to respond if more information is requested.
Time Limits
Once property is under the custody of the Alabama State Treasurer’s Unclaimed Property Division, the rightful owner’s ability to reclaim it is generally not subject to a time limit. Alabama law establishes the state as a perpetual custodian, meaning owners or their heirs can file a claim regardless of how much time has passed since the property was remitted to the state.9Alabama Unclaimed Property. General FAQs
The Alabama Uniform Disposition of Unclaimed Property Act is designed to reunite owners with their property indefinitely. While the law sets “dormancy periods” that dictate when entities must report and turn over property to the state, these deadlines apply to the holders, not the owners seeking recovery from the state.
Therefore, individuals discovering potential unclaimed property years or decades after it reached the state are not barred from filing a claim due to the passage of time. The State Treasurer’s Office holds these assets in trust until a valid claim, supported by sufficient proof, is made. Even if a claim is denied, claimants can typically file a new claim with additional documentation later.
Dispute Resolution
If the Alabama State Treasurer’s Unclaimed Property Division denies a claim due to insufficient proof, it must provide the claimant with written notice. This notice explains the reasons for denial and specifies any additional evidence required for potential approval.
Receiving a denial notice gives the claimant options. They can submit a new claim with the additional documentation requested by the Treasurer’s Office. This administrative route allows claimants to address deficiencies without resorting to court action. The responsibility remains on the claimant to provide sufficient evidence of their right to the property.
Alternatively, if the claimant chooses not to refile or if a subsequent claim is also denied, they have the right to seek judicial review. A claimant dissatisfied with the Treasurer’s decision can file an action in the Circuit Court of Montgomery County.10Justia Law. Alabama Code § 41-22-20 – Judicial Review This legal action must generally be initiated within 90 days from the date of the denial notice. If the Treasurer’s Office fails to act on a claim within 120 days of its filing, the claimant may also bring an action within that timeframe.
This judicial review typically proceeds under the Alabama Administrative Procedure Act. The court reviews the agency’s decision based on the administrative record, usually without a jury. The court can overturn or modify the decision if it finds the agency acted unlawfully, exceeded its authority, made errors of law or fact, or acted unreasonably or arbitrarily, thereby prejudicing the claimant’s substantial rights.
