USA Unclaimed Property Balance hits $58 Billion yes $ 58 Billion

 

It looks like the unclaimed fund balances have recently  been updated by each State, federal and other organization as required in the United States as a new figure is being quoted for the total held. Ready....?

The new estimated value for unclaimed property is now ...$58 Billion.

Again, sad but true. That's a lot of money as it works out to approximately $186 per resident of the US. Imagine if that money was all put to use in the economy.

The list of assets included in what the US defines as unclaimed (or abandoned) property (or sometimes referred to as unclaimed assets or unclaimed funds) is quite wide ranging in the US and actually getting wider.

Common forms of unclaimed property in the US includes savings or chequing accounts, stocks, uncashed dividends or payroll checks, refunds, traveler's checks, trust distributions, unredeemed money orders or gift certificate/cards (in some states), insurance payments or refunds and life insurance policies, annuities, certificates of deposit, customer overpayments, utility security deposits, mineral royalty payments, and contents of safety deposit boxes.

Here's some further detail on this $58 Billion estimate:

·        $300 Million in pension benefits from employment owed to 38,000 individuals

·        $16 Billion worth of matured US savings bonds (more than 45 million bonds)

·        $153.3 Million in tax refunds that were not deliverable by the IRS

·        $1 Billion in unclaimed insurance policy proceeds

·        $41.7 Billion in unclaimed funds held by individual states.

This last figure of $41.7 Billion is worthy of some further explanation. .

While rules vary slightly between each state, specific types of property are considered as being ‘abandoned’ or unclaimed when there has been no activity for 1-5 years. At that point, all financial organizations or any organization holding such property or funds are required to turn them over to the State Treasury.

Each state then takes over the search for owners through websites, newspaper ads, and booths at Malls and events like State fairs and Exhibitions. While searching for the owners, the State can use those assets to fund government operations but the owner’s claim to the property remains intact. Of the $58 Billion in unclaimed funds that has been reported, $41.7 Billion is being held by individual States. .

"The money belongs to the owner in perpetuity. Even if the owner dies, then their heirs could come back and claim it," said Carolyn Atkinson, West Virginia's deputy treasurer for unclaimed property and a past president of National Association of Unclaimed Property Administrators.

More on this story:

WPTV news story on unclaimed funds

To learn more about the National Association of Unclaimed Property Administrators and for a link to all State databases : NAUPA Website

Google Alerts fuels my obsession with the problem of Unclaimed funds

Google Alerts has been fueling my obsession with the problem of unclaimed funds for a long time. Every day in my inbox appears stories related to the reporting of unclaimed assets or the actual reuniting of long lost owners with those assets.

These stories all come out of the US primarily and not from Canada. While the stories are heartwarming they are also troubling since 1) it confirms the very real problem that exists related to unclaimed property and 2) it makes me wonder how Canada could be so far behind in legislating unclaimed property regulations when those regulations have been in place in the USA for 40+ years and 3) I fear that no one in Canada really has any proper handle on the extent of the problem here and finally, 4) given a multitude of factors, the problem of unclaimed funds will continue to rise at an ever faster pace. The problem is global and will grow unabated without a 'multi-pronged approach' of awareness, legislation and a financial organizing solution that individuals can put to use to safeguard their hard earned, tax paid financial assets.

Here are 3 stories from 3 different States to give you a sampling of what I read every day.

Feb 5 2013

Report from KLKNTV news/Nebraska:

The State of Nebraska paid out more than $1,215M to residents in in January 2013 made up of $560,000 in cash and more than $655,000 in stock and safekeeping items including:

·        A woman from Lincoln, Nebraska received $60,404 in cash and more than $232,000 of valuables from a safety deposit box.

·        A couple from Omaha were paid out a claim worth $101,000

·        A man originally from Nebraska now living in Colorado received $60,000 in cash and more than $217,000 in valuables

·        Two brothers from Omaha each received more than $33,000 from an abandoned chequing account owned by their uncle who died in 2008

The unusually high amount was a result of additional effort put into finding owners and returning as much money as possible, as expeditiously as possible reported the State Treasurer. The State is holding more than $125 Million owed to 350,000 residents or former residents from Nebraska. The list of owners for property added to the database for 2012 will be published in all 16 Nebraska newspapers and to the online database provided by the State.

January 16 2013
Report from the Quad City Times/Illinois

The total amount of cash and assets returned to Illinoisans through the state treasurer’s office last year increased by 27 percent over 2011; to a total of $129 Million up from $101 Million the year prior. Amounts returned ranged from a couple of dollars to an individual claim of $9 million. The Illinois state treasurer (Dan Rutherford) was thrilled “it’s pretty big when you can put $129 Million back into the economy of Illinois without raising taxes.” The state currently has $1.7 Billion in cash and contents from Illinois bank safety deposit boxes that have been abandoned for 5 or more years that is looking to reunite owners with. In Illinois, one in eight people has an asset to be claimed.

January 8 2013

Report from AOL Finance/Wisconsin

 

54 year old Daniel DeMeuse from Porterfield Wisconsin awoke $28,000 richer when he found out that a friend had left him money years earlier but the inheritance had been delayed by probate. At the time that the Office of the State Treasurer of New Jersey contacted him he was an unemployed studio artist and used the money to take care of his elderly mother

 

After reading just a sampling of some of the many stories I read each week,  you will have a better understanding of the 'why 'behind Legacy Tracker.  I think it is imperative that individuals and families have a secure and simple solution to better organize their financial and estate information which will help reduce the risk of their assets being lost. But it’s just as imperative that each Canadian province recognize the problem, shine a light on it and legislate some protection. Please.

 

A fascinating, ‘What Am I’ Quiz…

· North Dakota has $23M

· Wyoming has $26M

· Mississippi has $38M

· Idaho has $40M

· Vermont has $42M

· Colorado has $50M

· New Mexico has $100M

· Arkansas has $100M

· Utah has $100M

· West Virginia has $110M

· Rhode Island has $124M

· Hawaii has $130M

· Maine has $131M

· Kentucky has $150M

· Kansas has $200M

· Nevada has $200M

· South Carolina has $200M

· Oregon has $250M

· Oklahoma has $260M

· Minnesota has $300M

· Louisiana has $330M

· Wisconsin has $339M

· Indiana has $350M

· Alabama has $373M

· Arizona has $400M

· Missouri has $400M

· Alabama has $420M

· Maryland has $580M

· Washington has $700M

· North Dakota has $700M

· Florida has $1B

· Ohio has $1B

· Massachusetts has $1B

· Illinois has $1.5 B

· Pennsylvania has $1.9B

· Texas has $2.5B

· California has $6.1B

· New York has $11B

 In all, the US has approximately $33-$35B

And Canada?  Canada has ....well we are not exactly sure; no consistent legislation exists across Canada similar to what has existed in the US for some 40 years.

So can we estimate?

If Ontario has the same population as Illinois, does that mean Ontario might have approximately $1.5B in unclaimed property?

If Canada has the same population as California, does that mean Canada might have approximately $6B in unclaimed property?

The United States considers unclaimed property legislation legitimately as, Consumer Protection legislation. Each State collects up unclaimed property in the form of:

bank accounts that have had no activity or contact with the owner for one year or longer stocks, uncashed dividends or payroll checks, refunds, traveler’s checks, trust distributions, unredeemed money orders or gift certificates (in certain states), insurance payments or refunds, life insurance claims, public and private pensions, annuities, customer overpayments, utility security deposits, and even the contents of safety deposit boxes.

Each State then proactively looks for the owners and provides an online search tool for owners that have been separated from their assets or their families who have a rightful claim on such assets.

Canada needs consistent and comprehensive legislation as well. Now

….it’s the right thing to do.

What is Unclaimed Property?

Unclaimed Property is PERSONAL PROPERTY like unclaimed bank accounts, stocks, insurance proceeds, utility deposits,           un-cashed cheques and other forms of personal property
For approximately 40 years, the USA has considered legislation relating to unclaimed property as a form of consumer protection.

In Canada..not so much

In the USA, there are two reporting periods each year whereby unclaimed property is reported first to the individual state's Unclaimed Property Office, then published in a local newspaper and then finally the property is turned over to the State for safe keeping until its rightful owner makes a claim. Seems reasonable enough. 


In the USA, each state sponsors a free public site that reports a portion of the unclaimed property available in the United States. Commercial sites also provide the same information or portions of the information for a fee.

In Canada, only 3 provinces have any sort of unclaimed property legislation in force. Federally, the Bank of Canada provides a free search for CDN bank account balances. However, the search only covers balances from Chartered Banks (not Credit Unions) and only for accounts that are in CDN dollars (no foreign amounts) that have not seen any activity for 10+ years.

It's time for Canada to talk about it and ensure that all Provinces have the proper legislation to protect Individuals and Families...from losing track.

Look for some family money here:
Bank of Canada Online Search tool