THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Sunday, June 16, 1996 TAG: 9606150306
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY LYNN ASINOF, THE WALL STREET JOURNAL
LENGTH: 112 lines
Everyone has things that slip through the cracks. Sometimes those things add up to big bucks.
Billions and billions of dollars are sitting in federal and state coffers, waiting to be claimed by the rightful owners. Add to that all the unclaimed pension and insurance benefits, the uncashed dividend checks and other misplaced assets that have yet to get to these government offices, and the total value of American's missing assets is staggering.
``There is a trillion dollars in unclaimed property in the U.S.,'' estimates David W. Folsom, the author of ``Assets Unknown,'' a consumer guide to tracking down misplaced assets.
Those holding the property often make only minimal efforts to find the owners, perhaps sending a letter to the owner's last known address or publishing a list of names in a newspaper. That means it is typically up to the individual to figure out that property is missing and then track it down.
Some people first learn that they have unclaimed assets when they are contacted by a professional ``finder'' seeking a percentage of the proceeds. The fees can be steep, as much as 35 percent plus expenses in cases where the state hasn't imposed limits.
Silly as it sounds, it is easy to lose track of money. People move and forget to change their addresses. Companies merge or get spun off. Clerical errors occur. Papers get destroyed in a flood or fire. People forget to update beneficiary addresses or leave money in pension plans thinking they aren't fully vested.
No age group is immune. The problem is common in custodial accounts opened for minors, with people who move around a lot and with those inheriting property.
Still, it's probably the elderly who are most affected. ``Disproportionately, the people who are lost are older people,'' says Robert N. Shamansky, a Columbus, Ohio, attorney and former congressman who has adopted the cause of the ``lost'' owners.
The arrival of cheaper computer technology, combined with the public attention generated in part by Shamansky's efforts, are leading transfer agents and companies to try harder to find owners, says Robert G. Irvine, president of Unclaimed Property Recovery & Reporting Inc., a new Chicago company that helps mount these searches.
But such programs do little to help people whose assets have already been deemed ``unclaimed.'' Those who are trying to unscramble the finances of deceased or older relatives, many with memory loss, need to start at the beginning.
That means if Aunt Tillie owned, say, AT&T stock, you can start by contacting the company to ask about uncashed dividend checks and lost certificates. ``They will be able to check the records for you,'' says Karen Anderson, administrative coordinator of the National Association of Unclaimed Property Administrators, whose members are the state officials.
If you are not sure what Aunt Tillie owned, you may get some leads by checking old tax returns, talking to relatives and going through old papers. If you don't come up with any names, you can still contact the state unclaimed-property office.
States assume ownership of all property that is deemed abandoned - typically after three to five years, depending on the state - and use that money until it is reclaimed. That means items ranging from old bank accounts to unused safe-deposit boxes and unclaimed utility deposits all make their way into state coffers.
But which state do you query? Unclaimed property is returned to the state of the owner's last known address. It makes sense to look in every state where Aunt Tillie ever lived. If there is no known last address, the search expands, since property then goes to the state where the business holding the property is located.
States can be very helpful to searchers. Seven states - Indiana, Connecticut, Florida, Wyoming, Louisiana, Massachusetts and Rhode Island - now put names of lost owners on the Internet. Other states are following suit. Texas puts its lists on kiosks at shopping malls. Several states take their computers to state and county fairs.
But be warned, these names may only be the recent additions to the list. ``What you see is only the tip of the iceberg,'' says Folsom, noting that you must either call or write to the state to check the full list.
To find the right office, you can check with the state, or get a listing of state offices from the National Association of Unclaimed Property Administrators. Or use the Naupa home page on the Internet's World Wide Web.
The Naupa Web cite includes information about unclaimed property and hyperlinks to several states' Web pages, some of which are searchable by name.
Once you find a misplaced asset, you will need to prove both who you are and that you are the rightful owner. That can mean providing death certificates, birth certificates and other legal papers.
Don't be put off by the fact that it may be 20 years or more since an account was active. The property still belongs to the individual or the heirs, explains Patty White, Colorado's director of unclaimed property.
``We will hold it forever in that person's name,'' White says. The assets, however, might not be returned in their original form. ``Some states keep it forever in that form. Others sell it and then keep the cash.''
Money held by the federal government can be harder to find because there is no central clearinghouse. It has an estimated $300 billion to $400 billion sitting unclaimed in programs ranging from savings bonds to tax refunds to pensions dating back to the Revolutionary War, Folsom says. Searchers must contact the appropriate office for each program.
Some federally held assets revert to Uncle Sam if they aren't claimed in a timely fashion. Folks who don't file for tax refunds, for example, lose any money owed them after three years. Those who file but never receive their refund can claim that money at any time.
Aside from federally held assets, most other property should eventually make its way to the state's unclaimed-property office. It may take a long time to get there, in part because some companies don't like to comply. ILLUSTRATION: [Side Bar]
[To get a listing...
Naupa
9440 Timber Valley Drive
Indianapolis, Ind. 46250
or use the Naupa home page on the World Wide Web at:
http://www.intersurf.com/~naupa/] by CNB