Why Millions in Hawaiʻi Go Unclaimed Every Year — and How to Make Sure None of It Is Yours

Every year on February 1, states across the country recognize National Unclaimed Property Day — a reminder of a surprisingly widespread financial issue: billions of dollars in forgotten assets currently held by state governments, waiting for their rightful owners to come forward.

This isn’t rare or unusual. In fact, many people in Honolulu and across Hawaiʻi already have unclaimed property — they just don’t know it yet.

The purpose of this observance is simple:

✔ Help people recover money that already belongs to them

✔ Educate families on how assets get lost

✔ Prevent future losses through better organization and planning

Understanding how unclaimed property works — and how estate planning prevents it — can make the difference between your assets supporting your loved ones or quietly disappearing into state custody.

What “Unclaimed Property” Really Means

When people hear “unclaimed property,” they often imagine abandoned homes or forgotten treasure. In reality, it’s far more ordinary — and far more common.

Unclaimed property refers to financial assets that have had no owner activity for a legally defined period of time (often 1–5 years, depending on the state). When a bank, employer, insurance company, or financial institution can’t reach the owner after repeated attempts, the law requires them to transfer the asset to the state through a process called escheatment.

Importantly, the state doesn’t own the property — it simply holds it until someone comes forward with a valid claim.

Common examples include:

• Old checking or savings accounts

• Uncashed refund or payroll checks

• Forgotten investment accounts or dividends

• Life insurance proceeds beneficiaries never knew existed

• Contents of abandoned safe-deposit boxes

• Final paychecks from former employers

For people who have lived or worked in multiple states — which is common in Hawaiʻi — assets can easily become scattered and forgotten.

Why Assets Get Lost (Even When You’re Responsible)

Most unclaimed property doesn’t result from negligence. It happens because life gets complicated.

Common reasons assets slip through the cracks include:

• Changing jobs and leaving behind old retirement or benefit accounts

• Moving homes without updating addresses everywhere

• Marriage or divorce causing name mismatches on accounts

• Digital-only accounts with no paper trail

• A loved one passing away without a clear asset inventory

When someone dies, families often don’t know every account, policy, or benefit that exists. Without clear records, assets that were meant for loved ones are simply overlooked — sometimes permanently.

Across the U.S., states collectively hold tens of billions of dollars in unclaimed property. Even though billions are returned each year, more money becomes lost annually than reclaimed.

For Hawaiʻi families, the issue is magnified by:

• Out-of-state mainland accounts

• Military relocations

• Remote employment

• Paperless financial management

If no one knows an asset exists — or how to access it — it’s only a matter of time before it disappears.

Why National Unclaimed Property Day Exists

February 1 was chosen intentionally — early in the year, before tax season — as a chance to reset and organize.

The goals are simple:

1. Check for unclaimed property

2. Claim what belongs to you

3. Prevent future losses

While reclaiming assets is important, prevention is where the real value lies.

What You Can Do Right Now

Step 1: Search for Unclaimed Property

Every state maintains a free, searchable unclaimed property database. If you’ve ever lived or worked outside Hawaiʻi, you should search those states as well.

Helpful tips:

• Search current and former names (including maiden names)

• Try versions with and without middle initials

• Search every state where you’ve lived or worked

There is no fee to claim your property, though documentation is required — and the process can be time-consuming and frustrating.

Step 2: Prevent Assets From Ever Becoming Lost

This is where estate planning makes all the difference.

When you work with me, we create:

• A comprehensive inventory of your accounts and assets

• Clear documentation of beneficiaries and ownership

• A system for keeping everything current as life changes

I also help clients ensure:

• Their information is accessible when needed

• Trusted people know where to find it

• Nothing gets lost due to outdated addresses or forgotten accounts

For families in Honolulu and across Hawaiʻi, this kind of organization is often the difference between a smooth transition and years of unnecessary stress.

The Bigger Picture

Unclaimed property isn’t just about forgotten money. It’s about what happens when no one knows what you own, where it is, or how to access it.

The real goal isn’t reclaiming assets later — it’s making sure nothing you worked for is ever lost in the first place.

This February 1, take a few minutes to check for unclaimed property. Then take the more meaningful step: organize your financial life so everything you’ve built ends up exactly where you intend.

How I Help Hawaiʻi Families Protect What Matters Most

Even the most organized people can lose track of assets in today’s complex financial world. That’s why I help families create Life & Legacy Plans designed to keep everything aligned, accessible, and protected.

My role isn’t just drafting documents — it’s creating systems that:

• Keep assets out of state custody

• Protect loved ones from confusion and delay

• Adapt as your life changes

For families throughout Honolulu and Hawaiʻi, this approach ensures your legacy doesn’t depend on luck, memory, or bureaucracy.

FAQs

How do I check for unclaimed property in Hawaiʻi?

You can search the State of Hawaiʻi’s unclaimed property database for free using your name and prior addresses.

Does unclaimed property mean the state keeps my money?

No. The state holds it until someone submits a valid claim, but the process can be slow and documentation-heavy.

Can estate planning really prevent unclaimed property?

Yes. Clear records, updated beneficiaries, and proper planning dramatically reduce the risk of assets being lost.

Should I search other states too?

Absolutely. If you’ve ever lived, worked, or owned property outside Hawaiʻi, you should search those states as well.

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This article is brought to you by the Law Office of Keoni Souza, a boutique estate planning firm located in Honolulu, Hawaiʻi, proudly serving families on Oʻahu and across the Hawaiian Islands. At our firm, estate planning is about more than documents — it’s about creating lasting peace of mind for you and the people you love. Through our unique Life & Legacy Planning Process, we guide you to make informed, empowered decisions that protect your wealth, your wishes, and your family’s future. To get started, contact our Honolulu office today to schedule your Life & Legacy Planning Session.

Disclaimer: The information on this website is for informational purposes only and should not be considered legal advice. For guidance tailored to your specific situation, please consult an estate planning attorney licensed in the State of Hawaiʻi. Use of this website or communication through this site does not create an attorney-client relationship with the Law Office of Keoni Souza, LLC.