Changes to Unclaimed Property Law
By Jennifer Felten
Last year, the California State Assembly passed Bill 212, codified as Code of Civil Procedure sections 1530 and 1513.5, which modified the state’s unclaimed property reporting requirements. The law went into effect on January 1, 2014, but the new reporting requirements become mandatory on July 1.
Under the new rules, the threshold amount for the required submission of a report to the Controller by a person holding funds or other property for escheatment to the state has been changed from fifty dollars ($50) to twenty-five dollars ($25). As such, every person holding funds or other property worth at least twenty-five dollars ($25) for another must comply with these new requirements. In particular, the bill requires a person holding escheated property to include in his or her report to the Controller the name and last known address of the apparent owner of any escheated property, except travelers checks and money orders, worth at least twenty-five dollars ($25). The bill still allows the holder to report information regarding escheated items worth less than twenty-five dollars ($25) in aggregate, rather than accompanied by identifying numbers.
If the deposit, account, shares, or other interest has a value greater than two dollars ($2), the banking or financial organization may impose a service charge on the deposit, account, shares, or other interest for giving notice in an amount not to exceed the administrative cost of mailing or electronically sending the notice and form and in no case to exceed two dollars ($2).
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Jennifer Felten, Esq., Partner, Hershorin & Henry, LLP, www.hhlawgroup.com, 699 Hampshire Road, Suite 105, Westlake Village, CA 91361, (805) 265-1031, [email protected]. Ms. Felten specializes in representing both individuals and legal entities, providing representation and guidance on a variety of real estate related matters.
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