Unclaimed property laws protect the rights of property owners and their heirs and estates. These laws deal with property held on behalf of the property owner by another party, such as property held by:
- financial institutions
- insurance companies
- courts
In many cases, the property owner has forgotten about the unclaimed property or never knew they had it in the first place.
Every state has its own unclaimed property laws and they differ from state to state.
These laws generally require the entities that hold property on behalf of customers – like a bank that holds your money, for example – to turn the property over to the state when, under the law, the property is considered abandoned by the owner. This process is called “escheatment.”
Once the state receives the property, it holds it on behalf of the owner in perpetuity, until the owner claims it. Each state has a website where you can search to see if it's holding property in your name, and, if so, file a claim to get it back from the state.
Every state has its own detailed criteria that explain when property is considered abandoned (or “dormant”). The criteria for abandonment depend on the type of property. The abandonment criteria for your checking account, for example, is usually different than the criteria for stock certificates.
These rules can be complicated but generally, property is considered abandoned when the owner hasn't taken any action or indicated any interest in ownership of the property for a certain period of time – usually three to five years. The exact timing will depend on the type of property and the state where it's held.
Yes. Like all U.S. financial institutions, BMO is subject to unclaimed property laws.
In most cases, if you have an account with BMO, the state unclaimed property law associated with the last address we have on file for you will apply to your account.
For certain types of property, including uncashed money orders and cashier's checks, other rules determine the state where the property is escheated.
BMO monitors state unclaimed property laws, and we follow an internal process to regularly review customer accounts and other property to track whether and when, under the appropriate state law, a customer's property is considered abandoned.
When we identify a customer's account or other property as abandoned, we notify the customer in writing. If the customer doesn't take the requested action by the date listed in the notice, then BMO escheats the funds to the appropriate state.
There's a wide range of property that we are required to escheat under applicable state law, including:
- Savings accounts
- Checking accounts
- Stocks
- CDs
- Safe Deposit Box contents
- Trust distributions
- Uncashed money orders or cashier's checks
- Credit balances
- Overpayments
If you have a BMO checking or savings account that you use to make transactions (including transfers, withdrawals or deposits) even as infrequently as once every year or two, your account is generally not in danger of escheatment.
Often (depending on state law), a transaction on a BMO checking or savings account will protect some, if not all, of your other BMO accounts from escheatment.
But you don't have to use your BMO accounts to avoid having them turned over to the state. There are two other simple things you can – and should – do:
- Make sure that we have your current address on file and be sure you read all mail that we send you. We won't turn your property over to the state without first giving you written notice and an opportunity to avoid escheatment. We'll mail the notice to the most recent address we have for you in our records, so don't forget to let us know if you move. Read all of your mail from BMO so that you know what's happening with your accounts.
- If you do receive a notice from us requesting that you take action to ensure your account or property won't be escheated, respond promptly, before the deadline in the notice.
Every state has a website where you can search online for property that's been escheated, including any property that BMO has turned over to the state. Most searches are based on the name of the property owner.
Start with the website of the state where you now live. You may also need to check states where you previously lived, in case your address wasn't updated in our records.
Once you find your property, the website will provide instructions on how to file a claim. You may need to provide proof of your identity and/or ownership of the property that you're claiming.
Sometimes, particularly if the property was turned over to the state several years ago, you may have trouble identifying it online. If so, contact us and we may be able to help you identify the property.
To learn more about unclaimed property and the steps you need to take if your funds have been escheated, visit the website of the National Association of Unclaimed Property Administrators.