By Claudia Buck
Sacramento Bee
It's sort of California's official treasure hunt.
More than $6.1 billion in unclaimed property – old paychecks, insurance refunds, stock dividends, etc. – is sitting with the state controller's office, waiting to be handed over to the rightful owners.
One of those could be you.
Just two weeks after the deadline for banks and businesses to report accounts that have sat dormant for the last three years, state officials say millions of Californians could have money waiting to be claimed.
Where does it all come from? Forgotten bank accounts, uncashed checks or dividends, overlooked security deposits or utility refunds, old stocks or mutual funds, unclaimed life insurance payouts. Even the contents of grandma's safe deposit box.
Accounts go dormant for varied reasons: Someone moves or divorces and can't be located. Or a person loses track of a paycheck, refund or dividend check. Or when someone dies and their heirs are unaware that unclaimed assets exist.
The recession has contributed to the growing pot of unclaimed money, which nationally is about $33 billion, according to the National Association of Unclaimed Property Administrators (NAUPA), which represents programs in 50 states and parts of Canada.
For instance, following the collapse of Washington Mutual bank, more than $250 million in unclaimed accounts was turned over to various state governments last summer. California received $90.5 million in unclaimed WaMu deposits.
Overall, the state's stash of unclaimed property has steadily grown during the last three years, despite aggressive efforts to reach the owners. "It's rising because property keeps coming in and we can't always find people," said Hallye Jordan, spokeswoman for state Controller John Chiang.
"The dormant accounts are out there ... . With the economic downturn, people are trying to find dollars where they can," said Sonia Walwyn, vice president of unclaimed property services for the Keane Organization, a national risk management consulting firm.
Where to start searching:
In California, it's easy, either by phone or online. The state's unclaimed property website – www.claimit.ca.gov – lets you search in seven languages: Armenian, Chinese, English, Korean, Spanish, Tagalog and Vietnamese. The toll-free phone is (800) 992-4647.
Due to increased efforts to reach property owners, the state controller's office has roughly tripled the number of returned properties in the last decade or so, from more than 115,200 in 1997-98 to about 414,000 in 2008-09.
In the last few years, the state has sent more than 3 million letters to owners of unclaimed property, some of it going back to the 1980s. In addition, financial companies must send consumers an advance warning that their property is about to be handed over to state coffers.
"It's resulted in significantly more property being returned to owners and less turned over to the state," said Walwyn.
Nationally, the NAUPA-affiliated site, www.MissingMoney.com, lets you easily search for missing property in any state.
And you aren't limited to searching only for yourself. If your dad worked in New Jersey or your mother lived in Texas, it's worth checking the unclaimed property websites in those states to see if there are accounts waiting to be claimed.
To claim funds, you must provide proof. Typically, that means a driver's license and Social Security number, along with your signed claim form.
If your claim involves contents from a safe deposit box, property valued at more than $1,000, or shares of securities, your signature must be notarized. And if you're an heir of a deceased property owner, you'll need a death certificate and proof of the deceased's Social Security number.
Due to California's large volume of claims, it can take up to 180 days for the state to determine whether the documentation is sufficient.
Claims that involve only cash can be processed within 30 to 60 days. Those that are more complicated – multiple heirs, stock splits, etc. – require more research to confirm the amounts and rightful heirs.
Stocks and mutual funds are generally sold after 18 months and the net proceeds held for the owners or heirs. Similarly, the contents of safe deposit boxes can be auctioned off after 18 months and the funds held for owners.
However, state Controller Chiang has not sold off safe deposit box contents since 2007, said spokeswoman Jordan. "The hope is that people will have enough time to claim their property," she said.
Some consumers say it's not worth the time and trouble to file a claim, especially for small amounts of money or complicated claims involving multiple layers of documentation.
"Some owners get discouraged," said Keane's Walwyn. "We've heard from people who say it's not worth it. 'I've got a $50 claim, but I'm not even going to bother.' "
There are firms, called "asset locators" or "heir finders," that offer to locate your unclaimed property for a fee. It's not necessary to pay for such services, since accessing the claimit.ca.gov website is free.
If you use such a service, do not pay any fees upfront. By law, companies cannot charge more than 10 percent of the returned property's value.
If you're willing to do your own legwork, searching for unclaimed property is as easy as hopping on the phone or the nearest computer.
Happy treasure hunting.
www.sacbee.com/2010/11/14/3181591/personal-finance-california-has.html