After a year-long battle, a Massachusetts couple recovers $11.5K from an old account. How to facilitate the recovery of lost property

Finding money sitting in an old account that you forgot about can be a welcome surprise to anyone, especially if it was thousands of dollars. That extra cash can pay off bills, start a savings account or pay for an unexpected vacation.

That’s what happened to Massachusetts couple Meryl Goldsmith and Scott Penoyer, who were warned by the state that Penoyer had about $11,500 sitting in an old Morgan Stanley account, according to CBS Boston (1). All they had to do was apply.

Seems quick and easy, right? The couple found out otherwise.

After Goldsmith and Penoyer filled out the necessary paperwork, it turned out that the state required an authorized bank account before the money could be released.

“They need Morgan Stanley to fill out this whole form and that’s where it falls,” Penoyer told the broadcaster.

Instead of getting the signature they needed, what followed were months of foot-dragging by the bank, prompting the couple to call CBS Boston, hoping the media would pressure Morgan Stanley to do its part. It worked – after a year, the couple finally found their long-lost money. And they plan to enjoy it.

“We’re putting some of the money away, but we’re doing something small, and we’re going out to Vegas to see the Eagles,” Goldsmith said.

Despite the couple’s long-running battle to recover their money, the state insists the bailout itself is working well.

“We can always do better, but we are one of the most unclaimed states in the nation,” Mark Bracken, director of Massachusetts’s Unclaimed Property Division, told CBS Boston. “Last year, we paid more than 130,000 claims, about 80,000 of which were fast tracked and paid online without anyone having to fill out any paperwork.”

The state says it has seized more than $3 billion in assets, which may include forgotten bank accounts, tax refunds and unpaid checks.

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About 1 in 7 Americans – 33 million people – had unclaimed property held by states worth $70 billion, CNBC reported in 2023, citing data from the National Association of Unclaimed Property Administrators (NAUPA) (2). Countries hold many unclaimed funds, and each has an office dedicated to unclaimed funds. Programs that facilitate the recovery of these lost goods may vary from state to state.

It can take years before an account is considered abandoned after a period of inactivity. Usually the agency will try to reach the owner to inform them of the account being dormant. But, for example, if someone leaves without leaving a forwarding address, they may not receive notice, and after some time the account may be turned over to the government for safekeeping under a process called “escheatment.”

Bank and investment accounts aren’t the only place you can find leftover funds. Unclaimed money can be found in life insurance payments with unknown beneficiaries, abandoned deposit boxes and paychecks from previous employers.

Unclaimed money is not common, which is why states have departments that deal with the loss of property. But getting that money back can be challenging and requires some patience, which is especially true if you are the heir to the unclaimed (6) money of a deceased loved one.

NAUPA has a page with links to all the Unclaimed Areas Offices (3). If you suspect you have unclaimed funds out there, be sure to check each state where you live, work or open an account. Be prepared to provide proof of identification.

If you don’t want the hassle of searching for long-lost accounts, be sure to check and review your records annually, and make sure your contact information and address are up to date in case the agency needs to notify you. Also, keep a close eye on your pay stubs, and make sure you get all the pay – sometimes former employees forget to take out the last one.

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CBS Boston (1); CNBC (2); National Association of Junk Property Managers (3)

This article provides information only and should not be construed as advice. Offered without warranty of any kind.