Unclaimed Property

Dear Dr. Don,
My mother died 12 years ago. She had a checking account and a deposit box. We never got that because it was tied up with the county administrator for a long time until he was fired from the county. Also, she had a life insurance policy that she had paid the premium on the month she passed away. I have checked unclaimed property, but no records exist. What happened to this money and maybe her will in the deposit box? What do you think? Thank you. -- Gina Genteel

Dear Gina,
What took you so long? If your mom kept the original of her will in a safe-deposit box, the legal restrictions surrounding the opening of that box after her death should have slowed the process -- not caused her to die intestate. (Intestate means without the benefit of a will governing the disposition of her worldly goods.)

The safe-deposit box should have been opened and its contents inventoried shortly after her death. The money in the checking account should have been used to satisfy any claims against her estate and any remaining money passed on to her heirs -- if not by the terms of her will, then by terms specified by the state.

(Note: My editor and I would both like to remind you that I am not an attorney and cannot provide you with legal advice. An attorney, however, could tell you if the county's actions provide you with cause for legal action.)

The length of time before checking accounts and safe deposit boxes are considered abandoned varies by state. In my home state of Florida, any financial asset that appears to be unclaimed by its owner for more than a year is unclaimed property. The contents of safe-deposit boxes are considered unclaimed property after three years of delinquent rental fees.

That said, there is no statute of limitations in Florida when it comes to claiming unclaimed property. So, I was surprised to discover that the State of Florida is holding a public auction of items from abandoned safe-deposit boxes July 19-21 in Orlando, Fla.

Insurance policies don't revert to the government as unclaimed (escheat) property as quickly as other financial assets. If you know the name of the insurance company, you should contact them directly about the policy. Several insurers, like John Hancock and New York Life, let you initiate a request for missing policyholder information on line.

If you don't know the insurer, MissingAssets.com charges $8 for a Life Insurance Policy Search report that will help you to check with the major insurance underwriters. (I haven't seen what your $8 buys you, so I can't tell you if it's worthwhile.)

Checking your credit score

Dr. Don,
I want to be sure that if I go to one of your recommended Web sites (myfico.com) and obtain a credit report that it won't hurt my credit rating as stated on your Web site. I might apply for a mortgage soon. Sincerely. -- Sean Suspicious

Dear Sean,
When I first wrote about Myfico.com, it was the only way for consumers to order a copy of their credit score. Now all three major credit-reporting agencies (CRAs) provide credit scores to consumers. Fair Isaac provides credit-scoring services to all three major credit-reporting agencies.

They're called Beacon scores at Equifax, Emperica scores at TransUnion, and Experian/Fair Isaac Risk Scores at Experian. TransUnion includes a credit score in the $9 price of its credit report, Equifax currently charges $12.95 for both a FICO score and its credit report, and Experian is currently providing both a free credit report and a free credit score when consumers request a one-month free trial of its Credit Manager service. The Credit Manager service costs $79 annually, so mark your calendar accordingly if all you wanted was a credit score and credit report.

Reviewing your credit report for errors and disputing those errors prior to filling out a mortgage application is a good idea, but you don't need to request all three credit reports. If you spot and correct an error on one credit report, that agency is required to provide the corrected information to the other credit-reporting agencies.

MyFico.com, a partnership of Fair Isaac and Equifax, says on its frequently asked questions (FAQ) page that requesting your score won't change your score. TransUnion says on its FAQ page that your inquiry can have a small impact on your credit score. I didn't find anything on Experian's site that addressed how requesting your score might affect your credit score. My advice is to go ahead and get a copy of your credit score and credit report. Knowledge is power.

If you've got a great score, then you'll know to press for a firm's best rates. If your score is only so-so, you'll also know that.