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Claiming unclaimed money from a deceased relative can be fairly straightforward — or more complicated — depending on state inheritance laws and the amount of supporting evidence to back the claim.

When a person dies without a will or other legally binding document outlining the distribution of their financial assets, that money may become “unclaimed” after a designated period of time. Unclaimed money is often turned over to the state in which that person lived. However, relatives can claim that money through the appropriate channels.

Recommended: What’s a Good Monthly Retirement Income for a Couple in 2025

What Happens to Unclaimed Money From Deceased Relatives?

When no direct heir is identified, unclaimed money and assets from a deceased relative go to the state government. How soon the money goes to the state after the person dies will vary according to that state’s inheritance laws.

Once unclaimed money ends up in the hands of the government, the state authority will try to identify any relatives who are entitled to claim the money. Typically, a description of the assets and the name of the deceased are posted to one or several public and searchable websites. Some examples of these websites are:

•   Unclaimed.org

•   MissingMoney.com

•   TreasuryDirect.gov

•   FDIC.gov and NCUA.gov

•   PBGC.gov

•   UnclaimedRetirementBenefits.com

•   ACLI.com

Can You Claim Unclaimed Money From a Deceased Relative?

If you believe you are entitled to an unclaimed financial asset of a deceased relative, you can file a claim with the state government or the business that is holding it. If you are specifically named as a beneficiary in the deceased relative’s will, the claim process can be relatively smooth. If not, you may still be able to claim that money, but it will require supporting documentation or potentially a decision from a presiding probate court judge to ultimately verify the claim.

Recommended: How Much Does It Cost to Make a Will?

What Types of Financial Assets Can Be Claimed From Deceased Relatives?

Unclaimed money doesn’t necessarily have to be in the form of cash; it can also include other assets of value, such as:

•   Real estate

•   Forgotten bank accounts

•   Bonds

•   Stocks

•   Certificates of deposit

•   Annuities

•   Royalties

•   401(k)s and other retirement plans

•   Vehicles and other physical assets

Recommended: Unclaimed Money From Scholarships and Grants

What to Expect From the Unclaimed Money Process

If you’re planning to claim unclaimed money, the process will vary depending on the state you’re filing in and the asset in question. In some cases, you can file a claim online, provide proof of identity and any documented proof of ownership, and wait for your claim to be processed. Once the claim is approved, you receive the money. A budget planner can help you make the most of any unclaimed money you receive and also provide valuable financial insights.

In situations where the deceased did not have a will or an executor for the will, a probate court will typically appoint someone to oversee any ownership claims and asset transfers. If this is the case, you may have to wait longer or provide more documented proof in court before your claim is approved.

Once your claim is approved and you receive the money owed to you, you may be required to pay inheritance tax. Again, this depends on which state the deceased lived in. However, spouses are exempt from paying inheritance tax in every state. It’s a good idea to consult with a financial advisor to guide you through the process.

Recommended: What Is Generational Wealth, and How Do You Build It?

The Takeaway

Claiming unclaimed money from a deceased relative is possible. However, the complexity of the process will ultimately depend on the circumstances and the state in which the deceased lived. If you believe you’re entitled to claim unclaimed money from a deceased relative, leveraging an estate planning attorney or a financial advisor can help demystify the process and help you with your claim. Bottom line: It’s never too early to start thinking about your own estate planning needs and long-term financial goals.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

How do you know if a deceased loved one has left you money?

If a deceased relative has named you as a beneficiary in their will or another legally binding contract, the executor of that document or a probate court will likely reach out to inform you of any unclaimed money you are entitled to. If not, you can still check to see if you are entitled to money by searching a public unclaimed-money database online or by reaching out to the deceased relative’s financial advisor or estate planner.

How do I find assets of a deceased person?

To find the assets of a deceased relative, try looking through their personal property or reaching out to relatives and other friends with knowledge of their financial affairs. You can also inquire with the local probate court or state government agencies.

What happens when you inherit money?

Depending on where you inherit money, you may be required to pay inheritance tax. Once you pay this, you can do as you please with the money.

Who can claim unclaimed money from deceased relatives?

Usually, estate executors and legal heirs can claim unclaimed money from deceased relatives. In cases where the deceased did not appoint an executor, a probate court will appoint someone to oversee the process.

What happens to an unclaimed inheritance?

If an inheritance is unclaimed, the money or assets go to the state, which will try to find any relatives entitled to make a claim. Each state has a process by which unclaimed property can be identified and reclaimed; these returned assets are worth billions of dollars each year.

Photo credit: iStock/mdphoto16

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SORL-Q126-058

Having children brings many joys. But for women, it can also have a financial dark side. Becoming a mother often results in lost pay and opportunities for career advancement, a phenomenon known as the motherhood penalty. In fact, according to the Census Bureau Current Population Survey, full-time working mothers with children under 18 earned 35% less than their male counterparts.

Many factors contribute to the motherhood penalty, and not every woman experiences it in the same way. Understanding the motherhood penalty can help women and their families sidestep this financial setback.

How Does the Motherhood Penalty Work?

If you want to avoid the motherhood penalty and keep your budget on track, it pays to know your enemy. According to a 2025 article published in the Review of Economics of the Household journal, the decrease in women’s earnings after they give birth is driven both by a reduction in employment and by lower earnings for those who remain employed. Let’s look at each of these factors.

Women today have achieved historic levels of education and are working at senior levels in the corporate world, but they are still more likely than men to cut back on their working hours or stop working altogether after their baby is born. Some women may choose jobs that allow for more flexibility in hours, even if those roles pay less.

Discrimination is a more insidious factor: Women make up nearly half of all U.S. workers and do the bulk of consumer spending, yet some managers see men as breadwinners who prioritize work and women as caregivers who are less committed to their jobs. This leads to women facing discrimination in hiring, salary, and leadership opportunities.

When two women are similarly qualified for a job, the one without children tends to earn more than the one who has kids. Comparatively, fathers working full-time earn more, on average, than men who don’t have children.

Recommended: The Highest-Paying Jobs in the US

Why the Motherhood Penalty Matters

Households in which both spouses work have been common for decades. According to 2024 data from the Bureau of Labor Statistics, in about half of married-couple families, both spouses were employed. Families with two healthy incomes are most likely to be able to afford a home and cover other large expenses, including raising children, which is now estimated to be around $322,427.

But the motherhood penalty takes an especially hard toll on families in which women are the head of the household. According to the U.S Census Bureau, in 2022, 22% of U.S. children were growing up in a household led by a single mother, with many of these women relying on a single source of income. The motherhood penalty may contribute to the fact that nearly 30% of single mothers live below the federal poverty level.

Factors Contributing to the Motherhood Penalty

As noted above, the unspoken belief that women belong at home to care for their children or that they are not vital contributors to their family finances continues to be a driver of the motherhood penalty. This is despite the fact that households with two parents working outside the home are now the norm in the U.S.

But there is another troubling factor. Women may leave their jobs because childcare costs more than they earn. The monthly cost of caring for an infant ranges from $572 in Mississippi to $2,363 in Washington, D.C. And even when mothers continue working, they may scale back their hours or take more flexible but lower-paid positions.

The motherhood penalty is unfair, and an additional factor adds to the inequity: In households with two working parents, where each parent earns roughly the same amount, women still spend more time on caregiving responsibilities than men do — 12.2 hours per week on average, compared with 9 hours for men, according to a 2023 Pew Research Center report. Women also spend 5.1 hours doing housework, while men spend only 2.2 hours. Women’s work may be less valued, but as the old saying goes, it’s never done.

Recommended: Pros and Cons of Salary vs Hourly Pay

Tips to Avoid the Motherhood Penalty

So, what can women do to safeguard their finances from the motherhood penalty?

Stand up for fair earnings. Exercise your right to be fairly compensated with every step you take in the working world. Applying for a job? Do your research to learn what a good entry-level salary is. Offered a position? Learn how to ask for a signing bonus. Unemployment is relatively low, and employers in industries from retail to engineering may pay you to come on board.

Change jobs. Switching jobs can be stressful, and time off is often allotted based on seniority, but changing jobs is one way to bump up your salary. But before you do so, make sure you understand what a competitive pay rate is for the role you’re applying for. A growing number of states, including California, Colorado, and New York, have passed pay transparency laws that require employers to post salary ranges when they advertise job openings.

Don’t share your status. It’s unlikely that your potential employer will ask you during a job interview whether you have caregiving responsibilities, as doing so may violate federal and state laws. But many women casually disclose that they have kids during the interview process without thinking about the consequences. Avoid talking about your personal life when interviewing for a job, and be aware that many employers examine applicants’ social media feeds during their screening process.

Advocate for fair pay and families. To help promote equitable pay that can sustain families, you can support raising the minimum wage. Speaking out in favor of government support for affordable childcare and for mandatory paid parental/caregiver leave can also help ensure that women who want to stay in the workforce after having a child can afford to do so.

The Takeaway

Even though women are working outside the home in historic numbers, the motherhood penalty still exacts a heavy price for many women and their families. Acknowledging that women are financially penalized for becoming parents is the first step in fighting back against the stereotyping and discrimination that is often at the root of this problem.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

What is meant by the motherhood penalty?

The motherhood penalty refers to the fact that women’s earnings often suffer after they have children. The same effect does not apply to men, who typically earn more after becoming fathers.

What are the causes of the motherhood penalty?

A significant factor is that women often scale back on work or stop working altogether after having a child. However, they can also be discriminated against due to the stereotype that they are caregivers rather than breadwinners.

How does the motherhood penalty affect a woman’s career?

Mothers face lower pay, fewer promotion opportunities, and hiring discrimination compared to childless women. The motherhood penalty results in lower earnings, and because future earnings are often based on current salary, the reduced income often persists as a woman moves up the corporate ladder.

Which women are most affected by the motherhood penalty?

Discrimination due to becoming a mother exacerbates the difficulties experienced by women of color, low-income moms, and single parents. The motherhood penalty creates additional obstacles that make it harder for these groups to achieve economic stability and career success.

How can I avoid the motherhood penalty?

A good place to start is to know your worth. Do your research on salary before taking a job, and reevaluate your salary at least every year by looking at comparable positions.

Photo credit: iStock/Pekic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SORL-Q126-052

If you’ve finished graduate school, you’re likely looking for a job or are already working in your preferred area of study. Which is all good. But you may also be looking at a pile of grad school debt and wondering how you can make it go away ASAP.

If the interest rate on your federal or private loan (or loans) is higher than current rates, if you’re finding your monthly payments too high, or if you’re juggling multiple payments on different loans for school each month, you might want to consider graduate school loan refinancing.

Here, you’ll learn what graduate student loan refinancing is, what the pros and cons are, and how to tell if it’s right for you.

What Is Graduate Student Loan Refinancing?

Can you refinance student loans? Absolutely!

Graduate school federal or private loan refinancing works like any other kind of loan refinancing: It’s a modification of an ordinary student loan that involves taking out a new loan to pay off your existing graduate school loans.

Even if you had multiple loan payments and multiple interest rates before, you’ll now have a single monthly payment and one interest rate, which may (or may not) be lower than the rate on the original loan or loans.

There are two important points to consider when thinking about student loan refinancing:

•   If you refinance for an extended term, you’re likely to pay more interest over the life of the loan, even though your monthly payment may be lower.

•   When you refinance a federal loan using a private loan, you forfeit the benefits and protections of federal loans.

💡 Quick Tip: Get flexible terms and competitive rates when you refinance your student loan with SoFi.

How Does Refinancing Grad School Loans Work?

So, why would you want to consider refinancing your graduate school loans? Here are some of the benefits:

•   One single monthly payment

•   Possibly a lower interest rate

•   Potential to lower your monthly payment

First, if you’re making multiple payments for more than one school loan up to your graduate school loan limit, you might feel like you’re treading water and getting nowhere in actually paying off the loans. With private refinancing, you end up with one monthly payment, and it may be easier to adjust your payments to pay down the loan more quickly, as you’re not restricted to a certain income percentage or fixed figure.

If the interest rate you got on your original student loans for grad school was high, you might be able to save money with a lower rate by refinancing. If you’ve got great credit, you could qualify for low interest rates.

And if you’ve been struggling to make your monthly payment(s), you may be able to refinance for a longer period to reduce that monthly amount. However, as mentioned above, you may pay more in interest over the full life of the loan.

To refinance graduate student loans:

•   Shop around among lenders who specialize in refinancing.

•   Calculate your student loan refinancing savings for each option on offer, as rates can vary drastically from one lender to another.

•   Find one lender that offers good rates and terms. And remember: The better your credit score, the better the terms you may qualify for.

•   Apply for your new loan.

•   Once approved, pay off your student loan debt. You’ll begin payments on the new loan within a few weeks.

Recommended: Undergraduate vs. Graduate Student Loans

Pros and Cons of Refinancing Grad School Loans

When you’re considering graduate school loan refinancing, it’s important to look at the benefits, as well as the drawbacks.

If you’re refinancing federal student loans, remember, you’ll forfeit federal benefits and protections.

The Pros

As noted in the chart, these are the main advantages of refinancing your graduate student loans:

•   You may be able to get lower interest rates and a reduced monthly payment, and you could roll what you’ve been paying on multiple loans into one monthly payment. But note you may pay more interest over the life of the loan if you refinance with an extended term.

•   This could make it easier and faster to pay off your grad school loan.

•   If you’ve been struggling to pay your loan, refinancing could make it easier to pay on time, which could help build your credit. If your credit score rises, you could potentially qualify for better terms.

And if you’ve felt confused or lost about how to refinance your loan, you’re in the right place. SoFi’s got lots of resources for guiding you through student loan refinancing.

The Cons

Now, to review the potential downsides:

•   When you refinance a federal student loan with a private student loan, you forfeit federal benefits and protections, such as forbearance.

•   If your credit isn’t great, you might only qualify for loans with higher interest rates, which could cause you to pay more for your refinanced loan.

•   If you don’t qualify for graduate loan refinancing, you might need to have a cosigner to get approval, which can be a challenging step.

•   If you refinance for an extended term, you may pay more interest over the life of the loan.

•   When you apply for a new loan, it requires a hard credit pull, which can temporarily lower your credit score.

Alternatives to Refinancing Graduate School Loans

If you aren’t able to or don’t want to refinance your graduate loans, there may be other options for you to lower your payments:

•   If you took out a federal loan through the U.S. Department of Education, you may qualify for one of several annually certified income-driven repayment plans, including, from July 2026, the new Repayment Assistance Plan. You’ll need to meet the income and household size requirements.

•   You may also qualify to defer payments. There are deferment plans for unemployment, economic hardship, military service, cancer treatment, and more.

•   If you work in certain areas of public service, such as teaching or employment with a nonprofit, you might qualify for Public Service Loan Forgiveness. You may be required to work in a qualifying role for a certain number of years to receive forgiveness for your student loan.

Keep in mind that if your graduate loans aren’t federal loans, these options won’t be available to you.

Another option is simply to get aggressive about paying down your loan. This might require setting aside things you usually spend money on, such as clothes and vacations, for a while, or perhaps taking in a roommate. But once you pay off your grad school debt, you can resume those luxuries.

Recommended: Refinancing Student Loans vs. Income-Driven Repayment Plans

The Takeaway

If you’re struggling to pay your student loan or if you feel your interest rate is too high, graduate school loan refinancing could provide some relief and help you save money. The process can replace one or more monthly payments with a single payment, potentially for a lower amount, though this may involve extending the term and paying more interest over the life of the loan. Refinancing federal loans with a private loan, however, does involve forfeiting federal benefits or protections, so it may or may not be the right choice for you.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

Is refinancing graduate school loans any different than other student loans?

Refinancing a graduate school loan works like it would for undergraduate student loans. Be aware that by refinancing, you might lose benefits you had with your federal student loan, such as the ability to defer or change to an income-driven repayment plan.

Is it easy to refinance graduate student loans?

Refinancing grad school loans, particularly if you have good credit, is fairly simple. Find a provider that offers competitive rates, get approved, pay off your previous student loans, and then start paying down your new loan.

What are the advantages of refinancing graduate student loans?

Refinancing student loans for grad school may help you get a lower interest rate. It could also help you by consolidating multiple student loans into one monthly payment, and you could lower your monthly payment amount. Just keep in mind that you may pay more interest over the life of the loan if you refinance with an extended term.

Photo credit: iStock/NeonShot

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.