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Harborscape
Professional Building
1524 Alaskan Way, Suite 200
Seattle, WA 98101-1514 |
Phone:
206 | 583.0155
Fax: 206 | 343.5759
www.faolaw.com
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Abandoned Assets
Hunting for Lost Treasures -- You May Be the Heir to Abandoned Assets
Estate Planner Jul-Aug 1997
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Over the years, U.S. residents have abandoned tangible and intangible
property valued at billions of dollars. State unclaimed-property
laws, traditionally called "escheat," empower states (or
other governmental units) to take title to, or claim custody of,
property that has remained unclaimed or dormant for a period of
time and, therefore, is presumed abandoned. As an heir, you may
be entitled to lost treasures you don't know about.
Finding
the Treasure Map
Generally the burden is on the holder or custodian of property
to report its abandonment and meet corresponding notice and publication
requirements. Newspapers regularly publish such lists, so it may
be worthwhile to review lists that appear in states where your relatives
have resided. Look for your own last name, your or your spouse's
maiden name, your mother's maiden name and your spouse's mother's
maiden name to determine if the state is holding property to which
you may have a claim. You also may learn of escheated property when
the executor of a relative's estate discovers evidence of escheated
property, such as old uncashed dividend checks or unclaimed redemption
proceeds, and contacts you.
Recovering
the Treasure Chest
If you believe you have a claim to property that may have escheated
to the state, contact the state treasurer to determine what recovery
procedures are available. In general, the law provides a procedure
to make a claim to retrieve the property.
However, the first hurdle often is determining to just what state
the property escheated. Several states may claim custody of unclaimed
property based on jurisdiction over the corporate issuer or holder
of the property.
For example, if unclaimed intangible property, such as corporate
stock, is abandoned, the stock might be covered under the law of
the state where the company was incorporated, the state where the
corporate headquarters was located or a state doing significant
business with the corporation. Under the federal Uniform Unclaimed
Property Act, and several state statutes, unclaimed intangible property
is payable to the state of the last known address of the owner.
Thus, that is the first place to look. If the owner has moved often,
it may be necessary to check several states.
Don't
Make Your Heirs Go on a Treasure Hunt
Finding and retrieving escheated property to which you have a claim
can be exciting, but wouldn't you rather have had the property sooner?
Make sure that your heirs don't have to go through the escheat property
reclamation process. Keep close tabs on all of your property and
write a will or create a living trust to ensure that your estate
is passed to your heirs as you wish.
What
Is Abandonment?
At what point an asset escheats to the government varies by state
and may depend on the type of property that has been abandoned.
Under the federal Uniform Unclaimed Property Act, abandonment is
presumed in many situations, such as when:
- Money
has been held in a savings account with no activity for five years,
- Travelers
checks have been unused for 15 years,
- Intangible
assets from the dissolution of a business association have not
been claimed by the owner within one year after the final distribution
date,
- An
employer holds funds for an employee's benefit that the employee
fails to claim when he or she leaves the job, and
- An
individual dies intestate and those around him or her know of
no heirs.
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