How do I claim unclaimed property for a deceased person

As an estate planning attorney and CPA with over 35 years of experience here in Corona, I’ve seen firsthand how devastating it can be when a client, like Eric, discovers a substantial amount of unclaimed property after a loved one passes away – only to find the codicil naming the beneficiary was improperly witnessed and therefore invalid. He lost $18,000 in forgotten stock dividends simply due to a technicality. It’s a painful reminder that even with estate planning in place, details matter, and understanding the process for claiming these assets is crucial.

The process of claiming unclaimed property for a deceased person is often surprisingly straightforward, but requires diligent organization and adherence to specific state requirements. Many people don’t realize how much money is simply sitting unclaimed, often from old bank accounts, uncashed checks, insurance policies, or even stocks. The good news is, as the executor or administrator of the estate, or even as an heir if there is no formal estate proceeding, you have the right to pursue these funds.

What is Unclaimed Property and Where Do I Start?

Unclaimed property refers to assets that have been abandoned by the owner for a certain period. States hold these assets, allowing rightful owners (or their representatives) to claim them. The first step is to search the official unclaimed property databases for the state where the deceased person last resided, and any other states where they may have lived or conducted business. Most states have online search tools, typically accessible through their state treasurer or controller’s office. You’ll need information like the deceased’s full name, last known address, and potentially their Social Security number to conduct a thorough search.

What Documentation Will I Need?

Once you’ve identified potential unclaimed property, you’ll need to provide documentation proving your legal authority to claim it. This generally includes:

Certified Death Certificate: An official copy of the death certificate is almost always required.
Letters Testamentary or Letters of Administration: If the estate is going through probate, you’ll need a copy of the court document appointing you as the executor or administrator.
Affidavit of Heirship: If the estate is not subject to probate – perhaps the assets are below the threshold for formal probate – you may need an Affidavit of Heirship, sworn under penalty of perjury, stating your relationship to the deceased and your right to inherit.
Proof of Identity: A valid driver’s license or other government-issued photo ID.
Claim Form: Each state will have its own claim form, which you’ll need to complete and submit with the supporting documentation.

It’s important to note the distinction here, particularly in California. If the primary residence is valued at $750,000 or less as of April 1, 2025, the estate can pursue a Petition under AB 2016 (Probate Code § 13151), rather than full probate. However, this is a Petition requiring a Judge’s Order—it’s not an Affidavit. Also, remember that if combined ‘probate assets’ (excluding the AB 2016 residence) exceed $208,850 (the threshold effective April 1, 2025), they are subject to formal probate; a Will alone does not allow you to bypass this limit. A Small Estate Affidavit is only suitable for real property under $69,625, such as timeshares or vacant land.

What About Digital Assets and Bank Accounts?

Accessing digital assets—email accounts, online banking, cryptocurrency—can be a complex process. Without specific RUFADAA language (Probate Code § 870) in your Trust or Will, service providers like Coinbase and Google can legally deny your executor access to your digital assets. This is where having a tech-savvy estate plan is vital.

Similarly, while unclaimed property databases often list bank accounts, you’ll still need to follow the bank’s procedures for accessing those funds, providing the necessary documentation as outlined above.

The CPA Advantage: Step-Up in Basis and Valuation

As a CPA as well as an attorney, I can also advise you on the tax implications of claiming unclaimed property. One significant benefit is the “step-up in basis” – the inherited assets are valued as of the date of death, potentially reducing capital gains taxes when they are eventually sold. Properly valuing these assets is crucial, and my expertise ensures we maximize tax benefits while remaining fully compliant.

Business Interests and the FinCEN 2025 Exemption

If the deceased owned an LLC or other business interests, there are additional considerations. As of March 2025, domestic U.S. LLCs are exempt from mandatory BOI reporting under the Corporate Transparency Act; however, executors managing foreign-registered entities must still file updates within 30 days to avoid fines of $500/day.

Property Taxes and Proposition 19

When dealing with real property, it’s crucial to consider the implications of Prop 19. Under Prop 19, heirs can only keep a parent’s low property tax base if they move into the home as their primary residence within one year and the home’s value is within specific limits.

What does a California probate court look for when interpreting testamentary intent?

In California, a last will and testament is reviewed under probate standards that focus on intent, capacity, and execution. Clear drafting reduces ambiguity, limits misinterpretation, and helps families avoid unnecessary conflict during estate administration.

When a will is drafted with California probate review in mind, it becomes a stabilizing roadmap rather than a source of conflict. Clear intent, proper authority, and compliant execution protect both families and estates.

Resources for Asset Management & Transfer

• Property Tax Reassessment: California State Board of Equalization (Prop 19)
  This page details the “Base Year Value Transfer” rules. It explains that heirs can only avoid a property tax reassessment if the inherited home becomes their primary residence and a claim is filed within one year of the date of death.
• Real Estate Probate (AB 2016): California Probate Code § 13151 (Petition for Succession)
  The specific statute for the AB 2016 process. It outlines the requirements for using a court-approved “Petition” (not an affidavit) to transfer a primary residence worth $750,000 or less (gross value) for deaths occurring after April 1, 2025.
• Small Estate Affidavit: California Probate Code § 13100 (Personal Property)
  Access the statutory language for the “Small Estate Affidavit.” This procedure is strictly for Personal Property (cash, stocks, vehicles) and is limited to estates with a total value of $208,850 or less (effective April 1, 2025).
• Federal Estate Tax: IRS Estate Tax Guidelines
  The authoritative federal resource for estate valuation. It reflects the 2026 exemption increase to $15 million per person established by the One Big Beautiful Bill Act (OBBBA), which is critical for high-net-worth asset planning.
• Unclaimed Assets: California State Controller – Unclaimed Property
  The primary portal for executors and heirs to search for “lost” assets—such as forgotten bank accounts, uncashed dividends, and insurance benefits—that have been remitted to the State of California for safekeeping.
• Business/LLC Compliance: FinCEN – Beneficial Ownership Information (BOI)
  The official portal for corporate transparency reporting. While many domestic U.S. LLCs received exemptions in 2025, executors managing foreign-registered entities or specific non-exempt structures must still consult this resource to ensure compliance.