FAQ's:
GENERAL:
- What is “Unclaimed” or “Abandoned” property?
- How do Funds Become Unclaimed?
- Why is unclaimed property at the State?
- How can rightful owners prevent money from becoming unclaimed property?
- What does the state do with escheated funds?
- How does the state find unclaimed property owners?
- Is there a fee for claiming unclaimed funds held by the State?
- Are unused gift cards sent to the state as unclaimed property?
GENERAL:
What is “Unclaimed” or “Abandoned” property?
Unclaimed property is usually money and does not pertain to real estate of any kind, such as land or homes. Property is considered unclaimed if someone – other than the owner – holds the property and has not had any contact with the owner, usually for three to five years. Common sources of unclaimed property are:
- Inactive savings and checks accounts;
- Uncashed checks, such as payroll, refunds;
- Forgotten telephone or utility deposits;
- Inactive stocks and bonds;
- Life insurance policy proceeds
- Virtual Currency
How do Funds Become Unclaimed?
Funds are deemed unclaimed if there is no activity or contact with the rightful owner for a set period of time, generally 3 to 5 years. Before funds are transferred to the State, banks and/or companies must send a letter, by first class mail, to the owner at the last known address on their records. If the owner does not respond to the letter, the property is deemed unclaimed and sent to the State Treasurer for safekeeping until the rightful owner comes forward to claim the funds.
Why is unclaimed property at the State?
Unclaimed Property is sent to the state annually by various institutions such as banks, credit unions, insurance companies, utilities and businesses in accordance with Connecticut General Statutes section 3-65a. The Treasurer is the custodian of this property until the rightful owner comes forward to claim it. Unclaimed Property is sent to the State Treasurer to protect your funds, centralize your search efforts in locating property you lost contact with and to prevent a windfall to the company or institution that initially held your funds. The State does not assume ownership of the unclaimed property.
How can rightful owners prevent money from becoming unclaimed property?
- Keep accurate financial records in a safe and secure location;
- Keep a list of all bank accounts, stock certificates, broker accounts, insurance policies, utility and other deposits, and your safe deposit box number in a safe secure location;
- Correspond with all financial institutions and other account holders at least once a year;
- Cash all checks for dividends, wages and insurance settlements;
- Answer your email and mail from the institutions that hold your money;
- If you move, notify all parties of your new address;
- If you stop receiving dividends, contact the company immediately;
- Notify a family member or trusted advisor of the location of your records.
What does the state do with escheated funds?
Unclaimed Property receipts are deposited in the Connecticut State General Fund, in accordance with state law. The State never assumes ownership of the unclaimed funds. The State Treasurer is the custodian of these funds until the rightful owners come forward to claim the funds. Owner information stays in the database in the owner’s name until the rightful owner (or heir) claims the funds.
How does the state find unclaimed property owners?
Under Connecticut General Statutes, the State Treasurer’s Office is mandated to publish an electronic notice that new names of person appearing to own abandoned property are available. This is an effective method of reaching Connecticut residents about unclaimed property.
The Unclaimed Property Division provides a dedicated website, www.CTBigList.gov, that gives Internet users access to the Treasury’s unclaimed property database of millions of names. If they locate their name in the database, owners can receive a claim.
There are two ways to claim property, visit www.CTBigList.gov or call, toll free, 1-800-833-7318.
Is there a fee for claiming unclaimed funds held by the State?
No, it is absolutely free! If at any time you can prove the unclaimed property is yours, the Treasurer will return it to you without charge. You do not need to hire someone to locate your unclaimed assets.
Are unused gift cards sent to the state as unclaimed property?
A landmark 2003 Connecticut law made Connecticut one of the first states to provide consumers with important protections in the use of gift cards and gift certificates. In the past, prior to the Connecticut law, consumers would lose money from the value of gift cards and gift certificates due to monthly fees and other charges, and expiration dates. Public Act 03-1 (sections 66-84 inclusive) became law on August 16, 2003.
Gift cards and gift certificates purchased by shoppers in Connecticut cannot have an expiration date or incur inactivity fees. However, if gift cards are issued and administered by federally charted banks, Connecticut law does not apply. Federally chartered banks are regulated by the federal office of the Comptroller of the Currency (“OCC”). The OCC has stated that state laws like Connecticut’s Gift Card law do not apply to federally regulated banks. A federal court agreed and Connecticut no longer has the ability to enforce State of Connecticut unclaimed property laws against federally chartered bank issued cards.
Later legislative modifications to the 2003 law, effective October 1, 2005, changed certain aspects of the law. Public Act 05-189 (link) eliminated the requirement for businesses to turn over (escheat) the unused value of a gift card to the State Treasurer’s Office after a period of three years, if there was no owner contact. Prior to October 1, 2005, businesses were required to turn over any unused value remaining on a gift card, if the owner had not used the card for a three-year period. The unused value would be held in perpetuity by the State Treasurer until the rightful owners were located, consistent with Connecticut unclaimed property law which mandates the State Treasurer to serve as custodian of all unclaimed property due to Connecticut residents. PA 05-189 exempts gift cards from Connecticut’s unclaimed property law and, as a consequence, removes gift card consumers from the custodial protections of the State Treasurer’s Office.