Abandoned
property and unclaimed assets, in most cases, are bank accounts that
have been inactive. This means that there have been no deposits,
withdrawals or any interest postings in an account book for a period
usually between two to five years. Abandoned property can also consist
of securities and dividends held by stockbrokers and corporations;
uncashed checks issued in payment of wages, dividends, interest or
insurance payments; or unclaimed utility deposits. Abandoned property
can also include uncashed IRS refunds or other Federal government
payments.
If the Federal government cannot locate people for whom it
is holding money, that money is turned over to the state where the
person is last known to have lived. The time required for property to
become “inactive” or “dormant” depends on the type of property, as
determined by New York State law, but it usually varies between two and
five years. After a specific period of time has elapsed, the abandoned
property is turned over to the Office of Unclaimed Funds of the New
York State Comptroller’s Office. These funds are put to use for the
benefit of citizens of New York, but never become the property of the
State. If they amount to $3.01 or more, they remain available for the
rightful owner or heir.
RecoveryTo find out if the NYS Comptroller is holding money or securities to which you may be entitled, write or phone:
Office of Unclaimed Funds
Alfred E. Smith State Office Building
Albany, NY 12236
1-800-221-9311 (from within NY State)
518-474-4038 (outside NY State)
Provide your Social Security number, your current
address, previous address, previous names you may have used, and
current or previous business names and addresses. If an account is
found, the state may request certain further proof (such as bank
passbooks, proof of address, proof of ownership of stock, etc.) before
a claim is paid. NO CHARGES ARE MADE BY THE STATE FOR SEARCHING THE
RECORDS, CHECKING THE PROOF SUBMITTED OR RETURNING THE ABANDONED
PROPERTY.
You may also visit the New York State Comptroller’s Web Site at www.osc.state.ny.us to check to see if you are eligible for any unclaimed assets.
People may also locate assets held by New York State on their
own by checking the list of abandoned property published in the
“Abandoned Property Supplement” of the New York State Register,
published by:
New York State Department of State
162 Washington Avenue
Albany, NY 12231
The Supplement is published twice a year and can be found in most libraries as well as offices of town and county clerks.
Each state has its own unclaimed assets and property office. If you
have moved across state lines, you may want to check each state’s
office.
Abandoned Property Locating ServicesAbandoned property locating services send mailings to people whose
names appear on a list of abandoned property and charge a fee, often in
advance, in exchange for the name and code number of organizations that
previously held the property now held by the New York State
Comptroller. Consumers have complained to the Better Business Bureau
that they have received letters from abandoned property locating
services that make exaggerated and, in some instances, misleading
claims. Some consumers have alleged that they have paid the fee
requested by the firm only to find that the state held $3 or less of
their money.
New York State RegulationsThe
Office of Unclaimed Funds will release abandoned property only to
entitled persons, persons who can present approved power of attorney
from a claimant, legal heirs or to attorneys duly hired by the claimant
to handle affairs. It is never necessary for a claimant to work through
an attorney or assign power of attorney to another to obtain funds, but
if an attorney is used, the NY State Abandoned Property Law provides in
Section 1416 that:
- No agreement with someone else to locate property held by
the comptroller shall be valid unless the agreement is in writing and
signed by the property owner, discloses the name and address of the
holder.
- No such agreement shall be valid if it provides for a fee in excess of 15% of the value of the recoverable property.
Different regulations may apply to assets located in another state or
if the property has not been registered with the comptroller as
abandoned property. Consumers should contact the State Comptroller or
Treasury Department in the state where the assets are being held.
Rightful Owner Locating ServicesPersons
may also be notified by a locating service that they may be “heir” to
an unclaimed asset not yet held by the state. Corporations, banks,
insurance companies, trustees and attorneys retain such services to
find missing persons for whom unclaimed assets are being held. As these
assets are not considered abandoned property (because they have not
been turned over to the state), the New York State Abandoned Property
Law - including the limitation of the fee to a maximum of 15% - does
not apply.
All fees should be understood in advance. They are often based
on a percentage of the value of the recovered asset and are contingent
upon the rightful owners not having been previously aware of his or her
entitlement to the unclaimed asset. Fees are generally paid only upon
successful recovery. Before entering into an agreement to locate
unclaimed assets, a person should examine and understand the terms and
fee schedule before signing a contract.