National Unclaimed Property Day: Why Estate Planning Is More Than Just Documents
Every year on February 1, National Unclaimed Property Day serves as a reminder of a startling reality: more than $60 billion in unclaimed assets are currently being held by state governments across the United States. California alone has over $13 billion in its Unclaimed Property fund.
These assets are not loose change or forgotten gift cards. They include life insurance proceeds, dormant bank accounts, uncashed checks, retirement funds, investment accounts, and other valuable property.
This issue highlights an often-overlooked truth: estate planning is about far more than signing documents. Without proper coordination, organization, and ongoing review, even well-intentioned plans can leave assets behind.
How Assets Become “Lost” or Unclaimed
Many people are surprised to learn how easily assets can slip through the cracks. Consider this scenario: you become incapacitated or pass away, and a loved one — or a court-appointed individual — is tasked with identifying and gathering everything you own.
Would they know where to look? Would they be able to find all of your accounts, policies, and property?
Even for highly organized individuals, this can be difficult. Over a lifetime, people may:
Change jobs and leave behind retirement accounts
Open and forget about bank or investment accounts
Purchase life insurance policies years earlier
Accumulate digital and online-based assets
When an estate plan is outdated or lacks a clear asset inventory, loved ones may have no way of knowing what exists or where to find it. Over time, those assets can be turned over to the state as unclaimed property rather than benefiting the people you intended.
Why Traditional Estate Planning Often Falls Short
Many traditional or do-it-yourself estate plans focus almost exclusively on documents — a will, a trust, or powers of attorney — without addressing the practical realities of asset identification and follow-through.
Often, documents are signed, placed in a drawer, and not revisited for years. There may be:
No comprehensive inventory of assets
No system for updating information over time
No guidance for loved ones on how to locate accounts
As a result, even carefully drafted documents can fail to prevent assets from becoming lost, overlooked, or eventually classified as unclaimed property.
The Importance of an Asset Inventory and Regular Review
A comprehensive estate plan should include a clear and current inventory of assets, along with a process for reviewing and updating that information over time.
An effective asset inventory goes beyond obvious items like a home or checking account and may include:
Life insurance policies
Retirement accounts from current and former employers
Investment and brokerage accounts
Business interests
Valuable personal property
Intellectual property rights
Digital assets, including cryptocurrency
Without this level of clarity, loved ones may struggle to locate assets — even if they know those assets exist.
The Growing Risk of Lost Digital Assets
Digital assets present a unique and growing challenge in modern estate planning. These may include:
Online financial accounts
Cryptocurrency wallets
Social media profiles
Digital business assets
Photographs and documents
Without proper documentation and access instructions, digital assets can become effectively inaccessible, and in some cases permanently lost.
Beyond their potential financial value, many digital assets hold significant sentimental importance, such as family photos, emails, or creative works. When these assets are lost, the impact goes far beyond money.
Estate Planning Is About Reducing Burden, Not Creating It
Effective estate planning is not just about distributing assets after death. It is about making life easier for the people you leave behind.
That means ensuring:
Assets are properly titled
Beneficiary designations are current
Ownership and documentation are coordinated
Loved ones know how and where to access information
When these steps are overlooked, families may face unnecessary stress, delays, and financial loss during an already difficult time. A thoughtful estate plan helps ensure your hard-earned assets reach the people you care about, rather than becoming part of the billions held by the state.
If you have not reviewed your estate plan recently, or if you are unsure whether all of your assets are accounted for, this is an ideal time to take a closer look.
Click here to consult with Emily to ensure your plan is comprehensive, current, and designed to protect both your assets and your loved ones.
