🧾 Case Study: Maria Thompson’s Forgotten Savings Account
Maria Thompson, a retired schoolteacher in Orange County, California, passed away in late 2016. During her life, she maintained several bank accounts for savings, household expenses, and emergency funds. One such account—a Wells Fargo savings account—contained $32,400, which had not been accessed since 2015, when Maria was hospitalized due to health complications.
After Maria’s passing, her three adult children—David, Claire, and Jordan—took on the responsibility of sorting through her estate. While her will named each child as an equal beneficiary, it did not include any mention of the Wells Fargo account. The children assumed that all of Maria’s financial assets were held in the accounts they had access to, which were closed and distributed through probate.
Years later, in 2023, Claire was reading a news article about California’s unclaimed property program. Out of curiosity, she visited the California State Controller’s Office Unclaimed Property Search and typed in her mother’s full name. To her shock, a result appeared for a dormant bank account listed under Wells Fargo, showing a balance of $32,400.
Upon further investigation, the children learned that after three years of no activity or contact, Wells Fargo had legally transferred the dormant account to the California State Controller’s Office in accordance with California’s Unclaimed Property Law. The account had become officially classified as abandoned.
They submitted a claim, provided Maria’s death certificate, a copy of the will, probate documents, and their identification. Within 12 weeks, the funds were successfully released and divided among the three siblings.
📌 Why It Happened:
• No beneficiary was named for the account.
• Maria’s will failed to disclose all her financial assets.
• The bank account had no activity for three years, triggering escheatment under California law.
• There was no power of attorney or joint account holder assigned prior to Maria’s incapacitation and eventual passing.
🛠️ Solution:
• Regularly review all financial accounts, especially savings and CDs.
• Name payable-on-death (POD) beneficiaries on all accounts.
• Keep a centralized asset inventory with access instructions for trusted family members or legal representatives.
• When drafting a will or trust, include specific account details (bank name, last known balance, partial account numbers).
• After a loved one passes, always check with:
• The FDIC Unclaimed Funds tool (FDIC.gov)
• The National Association of Unclaimed Property Administrators (NAUPA) (https://unclaimed.org)
📊 Relevant Statistics:
• According to the FDIC, over $4.1 billion in unclaimed bank accounts is currently held by state agencies nationwide.
• The California State Controller’s Office alone holds more than $11 billion in unclaimed property, with bank accounts being among the most common types.
• Each year, millions of dollars from dormant checking, savings, and CD accounts are transferred to state coffers due to inactivity, death, or lost contact.
✅ Best Practices to Prevent This:
• Use automatic reminders to log in to bank accounts at least once a year to maintain activity.
• For elderly relatives or those in poor health, establish joint account access or a durable power of attorney for financial management.
• Periodically search for unclaimed assets using both the state’s unclaimed property tool and federal agency sites.
• Review estate planning documents every 2–3 years to ensure they reflect all current accounts and designate successors.