National Conference of Commissioners on Uniform State Laws

211 E. Ontario St., Suite 1300, Chicago, IL 60611
tel 312-915-0195, fax 312-915-0187

For Immediate Release

STATES SHOULD ENACT 1995 REVISIONS TO ABANDONED PROPERTY LAW
UUPA 1995, Enacted in Nine States, Can Increase the
Billions in Property Now Remitted Annually to the States

January 2000 - It is estimated that 10 billion dollars in unclaimed property is sitting in state coffers throughout the U.S., waiting to be claimed by the rightful owners. Although the primary purpose of unclaimed property legislation is to preserve property for the rightful owners, in fact, unclaimed property is also one of the single largest non-tax forms of revenue available to the states--in some states exceeding even the lottery.

What is unclaimed property? Typically, these unclaimed assets are the value of old checking and savings accounts, life insurance policies, undistributed dividends, utility deposits, contents of abandoned safe deposit boxes and much more. Virtually every company and government entity is holding abandoned intangible property and is required to file reports with the states annually.

Beginning in the 1950s, first the Uniform Disposition of Unclaimed Property Act and, since 1981, the Uniform Unclaimed Property Act, both promulgated by the Uniform Law Commissioners (ULC), have laid down the rules for determining when such property is actually considered abandoned and for transferring this property to the state if the rightful owners can not be found.

Until it is redeemed, the state will hold this unreturned money forever in the "lost" person's name, and can use it for the benefit of the state and its citizens. At any time, lost owners who locate their property will be reunited with what is rightfully theirs.

The 1981 Uniform Unclaimed Property Act, the basis of abandoned property statutes in more than half the states, imposed strict obligations on property holders, such as banks, and streamlined transfer to the states if the rightful owners could not be found. It also helped consumers to claim their property, and intensified efforts that must be made by the states to locate missing owners.

If this sounds like a winning scenario for consumers and states alike, it is. Just look at some numbers. This June, Louisiana publicized the names of 33,500 people eligible to claim more than $11.5 million in unclaimed property that was turned over to the state during the past year. Louisiana has returned more than $22 million of unclaimed property to its rightful owners since January 1996. Maine has on file more than 90,000 accounts with a value close to $40 million. And in Michigan, more than 115,000 people are entitled to lost treasure, adding up to $17 million. Last year alone, Michigan returned more than $10 million to people who didn't know they had it coming.

Each of these states has adopted the newer 1995 revision to the Uniform Unclaimed Property Act, which is available for adoption by all the states, and which strengthens the process for the benefit of states as well as consumers. For example, there have been problems determining which state should receive unclaimed property. The current revision clarifies this rule, stating that property is payable to the state in which the last known address of the owner was located.

Also, states have become more aware of the benefits to be reaped from the collection of unclaimed property since the earlier 1981 act was approved, and have changed their laws, particularly as they relate to the dormancy period. The result has been a serious lack of uniformity among the states--a situation objected to by states and property holders alike.

The 1995 revision reduces abandonment periods required to presume that some types of property is abandoned--e.g. corporate stock (seven to five years), and certain kinds of insurance (now set at three years). The generally accepted notion is that it is much easier to locate missing owners after a shorter period subsequent to their becoming "lost."

Cyberspace is making it still easier for individuals to locate and claim their property. The National Association of Unclaimed Property Administrators (NAUPA) has redesigned its Web site (www.unclaimed.org), with links to the Web page of unclaimed property offices in more than half the states. Nearly half have lists of unclaimed property owners--searchable online by name.

Because of the interstate character of abandoned property law, it is clear that every state should adopt the Uniform Unclaimed Property Act (1995). In addition, it offers a revenue generating program that should be fully embraced by all the states.

The ULC, officially known as the National Conference of Commissioners on Uniform State Laws, is now in its 109th year. The organization comprises more than 300 lawyers, judges, and law professors, appointed by the states as well as the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, to draft proposals for uniform and model laws and work toward their enactment in their legislatures. Since its inception in 1892, the group has promulgated more than 200 acts, among them such bulwarks of state statutory law as the Uniform Commercial Code, the Uniform Probate Code, and the Uniform Partnership Act.

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