An executor for a Brooklyn estate is preparing the final accounting. Everything seems to be in order—the brownstone is sold, the investment accounts are settled, the taxes are paid. Then, a piece of mail arrives from the New York State Comptroller’s Office. It’s a notice about an old utility deposit from an apartment the decedent rented 20 years ago. It’s only for a few hundred dollars, but it raises a critical question: what else might be out there?
This scenario is not rare. Over a lifetime, people open bank accounts, buy stock, pay utility deposits, and rent safe deposit boxes. When they move or lose track of paperwork, these assets can become disconnected from their owner. After a period of inactivity, the financial institution holding the asset must turn it over to the state. This is “unclaimed property.”
For an executor or an estate administrator, dealing with these forgotten assets is not about finding a surprise windfall. It is a fundamental part of their legal responsibility.
The Fiduciary Duty to Marshal Assets
When you are appointed by the Surrogate’s Court to administer an estate, you take on a fiduciary duty. This is the highest standard of care recognized by law. A key part of that duty is to “marshal” the decedent’s assets—to identify, collect, and protect everything the person owned for the benefit of their heirs and creditors.
This duty extends beyond a house or a primary checking account to every last dollar. An executor must conduct a diligent and prudent search for all property, including funds turned over to the state. Failing to do so can be a breach of that duty, potentially exposing the executor to liability. The court expects a thorough accounting, and that includes proof that a reasonable search for unclaimed property was made.
This is not a treasure hunt; it is a matter of stewardship. The goal is to ensure the decedent’s full legacy is passed on as they intended, or as the law requires if they died without a will.
How to Search for and Claim Property in New York
The Office of the New York State Comptroller is the primary repository for unclaimed funds in our state. It maintains a searchable online database containing over $19 billion in lost money. The search itself is straightforward, but recovering the funds for an estate requires proper legal authority and documentation.
The process generally involves these steps:
- The Initial Search: We start by searching the Comptroller’s database using the decedent’s name, including any maiden names or variations, and past addresses.
- Identifying Potential Claims: If the search yields results, we must determine if the funds truly belong to the decedent. The database provides limited information, so careful verification is necessary.
- Establishing Legal Authority: To file a claim for an estate, you must prove you have the legal right to act. This requires official documents from the Surrogate’s Court, such as Letters Testamentary for an executor or Letters of Administration for an administrator. Without these, the Comptroller’s Office will not release the funds.
- Filing the Claim: The claim process is governed by state law. New York’s Abandoned Property Law ABP § 1406, for instance, outlines the procedures for paying claims. The process involves submitting a claim form with the court-issued letters, a death certificate, the decedent’s social security number, and proof of their last known address.
The process can take several months. The state must verify the claim and ensure the funds are released to the correct person—the court-appointed fiduciary.
Looking Beyond the State Database
A prudent search does not end with the state’s database. As attorneys for fiduciaries, we advise a deeper investigation based on the decedent’s personal records. Old tax returns are an excellent source of information, as they list accounts that paid interest or dividends. Reviewing old mail, bank statements, and address books can also provide clues to forgotten accounts or insurance policies.
We also consider searches of other states’ databases if the decedent ever lived or worked outside of New York. National databases exist for life insurance policies and federal tax refunds. A thorough search is a hallmark of a well-administered estate.
Discovering unclaimed property during an estate administration is an essential step in fulfilling your duties. It honors the decedent by ensuring the assets they worked for are not forfeited to the state but are instead used to build their intended legacy.
If you are an executor or administrator and need to create a systematic plan for your duties, the first step is to organize the decedent’s financial records. Once you have a clear picture of the known assets, you can begin the deliberate process of searching for any that may be missing.
