U.S. Government trustees are holding billions of dollars in unclaimed property, including outstanding checks, savings/checking accounts, refunds, customer overpayments and the contents of dormant safe deposit boxes. The State of California alone is currently in possession of more than $6.9 billion of unclaimed property that belongs to approximately 21.5 million individuals and organizations. Property is considered unclaimed under unclaimed property statutes when there has been no owner contact or no account activity for a specified period of time known as dormancy periods, usually between 1 and 3 years.
Property can become unclaimed because the owner forgets that the account exists, moves without leaving a forwarding address, or the heirs or beneficiaries have no knowledge of the property. The Unclaimed Property Law, first enacted in 1954, provides a central repository in each state where citizens can seek the missing property. The act also prevents “holders” of unclaimed property from using the unclaimed property or taking it into their business income. When efforts by the “holders” to locate the owners or heirs fail, the “holders”, which includes corporations, business associations, financial institutions, insurance companies and any other business entity or exempt organization, are required to report and transfer the unclaimed property to the state in a process known as escheat. The state is then responsible for safeguarding the property, attempting to locate the owners, publicizing the names of apparent owners and returning the assets to the owners as they come forward.
Under the California Unclaimed Property Law, the holders are required to annually report and deliver property to the State Controller’s Office through a two-report process. (See www.sco.ca.gov for Holder Notice Report and Holder Remit Report) Once the property is reported, the State will publish owners’ names on the Internet, and staff members will make efforts to reunite owners with their property. Compliance with the unclaimed property statutes helps holders of unclaimed property maintain their relationships with customers and suppliers, while reducing the risk of penalty. For failure to report, pay, or deliver unclaimed property in a timely manner, California has mandatory assessment of interest unless there is proof of reasonable cause for the delay. Interest is assessed at 12% per year on the property from the date the property should have been reported, paid, or delivered. California may also issue fines for willful failure to report and/or remit. Fines may be assessed at $100 per day for each day a report is withheld, not to exceed $10,000. Fines for willful refusal to pay or deliver escheated property range between $5,000 and $50,000.
If you believe there may be unclaimed property that you are entitled to as the original owner, an heir, a personal representative or a beneficiary, you may use the search feature at the California State Controller:
https://ucpi.sco.ca.gov/ucp/Default.aspx
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