Starting in January 2025, New York residents might receive an unexpected financial boost in the form of checks worth up to $250, courtesy of a recently enacted state law streamlining the process for reclaiming unclaimed funds. This initiative eliminates the bureaucratic hurdles previously requiring individuals to file claims, regardless of the amount owed. Now, the state comptroller’s office can proactively issue checks for amounts up to $250 to rightful owners, simplifying the return of forgotten assets. This proactive approach is expected to accelerate the return of unclaimed funds, bringing a welcome financial surprise to many New Yorkers in the new year.
The funds in question originate from various sources, encompassing dormant bank accounts, forgotten investments, expired gift cards, and uncashed insurance checks. These assets are often overlooked or forgotten by their owners and subsequently turned over to the state after a period of inactivity. Prior to the legal amendment, individuals were required to submit formal claims to retrieve these funds, even for relatively small sums. The new law eliminates this cumbersome requirement for amounts up to $250, enabling the comptroller’s office to directly disburse the funds to verified owners.
This streamlined process is expected to significantly expedite the return of unclaimed funds, benefiting both residents and the state. The comptroller’s office reports an average claim payout between $50 and $100, processing over $1.5 million in daily returns. As of November 2024, the total unclaimed funds held by the state exceeded $19 billion, with over $5.5 billion attributed to New York City alone. By automating the return process for smaller amounts, the state aims to reunite a substantial portion of these funds with their rightful owners more efficiently.
Comptroller Thomas DiNapoli emphasized the proactive nature of the new system, stating that the office will verify ownership and directly issue checks for amounts up to $250, rather than simply notifying individuals of the existence of unclaimed funds. This proactive approach aims to reduce the administrative burden on both the state and its residents, ensuring a smoother and more efficient return of unclaimed assets. DiNapoli highlighted the significance of this change, noting that it will expedite the return of lost money while maintaining the integrity of the process and ensuring funds reach their rightful owners.
The updated law also addresses the issue of unclaimed funds from expired gift cards. DiNapoli clarified that even if a gift card has expired, the remaining balance can still be reclaimed, provided the card was registered beforehand. This provision offers a valuable opportunity for individuals to recover funds they may have otherwise considered lost, further maximizing the impact of the new legislation. The initiative aims to cover a wide range of unclaimed assets, encompassing common scenarios like forgotten bank accounts and overlooked gift cards.
While the new law simplifies the process for reclaiming smaller amounts, larger sums and funds belonging to deceased individuals require additional documentation. DiNapoli explained that rightful heirs, such as parents or grandparents of deceased individuals, can still claim those funds but must provide supporting documentation to establish their legal entitlement. This provision ensures that the unclaimed assets of deceased individuals are distributed to their rightful beneficiaries while maintaining necessary safeguards against fraudulent claims. The comptroller’s website serves as a valuable resource for individuals seeking to determine if they are entitled to any unclaimed funds, providing a user-friendly interface to initiate the recovery process.
