Unclaimed property, in terms of financial assets or real estate, is any particular asset that is considered to have been abandoned, or that very least, remains inactive in terms of activity from its proper owner.
The state of California unclaimed property statutes define unclaimed property as any kind of financial asset that has been inactive for three years. However, under the state of California Unclaimed Property Law, the provisions will not include real estate.
The state of California will recognize the following as unclaimed property:
Bank accounts and safe deposit boxes
Mutual funds, stocks, and bonds
Estates
Trust funds and escrow accounts
Royalty payments
Terminated insurance policies
Currently, there is an estimated $5.7 billion in the state of California unclaimed property assessments. Under the state of California’s Unclaimed Property Law, owners of such property must make a report and deliver such assets to the Controller’s Office.
In most cases, unclaimed property is the result of owners of said property either moving, forgetting that they are in possession of the property, or the account or contract is expired and the owners are unaware.
The law is enacted in order to prevent unclaimed property holders to use the state of their assets as a way to turning residents’ taxes as a source of income, protecting citizens of the state of California from any kind of ill-willed situations. Unclaimed property is regulated by the State Controller’s Office of California, currently held by John Chiang.
