by Doreen Martel

Created on: November 22, 2011   Last Updated: November 24, 2011

For most financial accounts in Illinois, property is considered unclaimed (or abandoned) after a period of five years of inactivity. The one notable exception to this is funds that are owed to employees including uncashed wage checks, commissions or other funds paid in the normal course of employment. This one year rule does not apply to pension or other retirement benefits which are deemed abandoned after five years.  Let us  take a look at some of the other unclaimed property laws in Illinois.

Last known address

Before a company or financial institution submits a report stating that property is abandoned, they must make an effort to contact the owner of the account. The process must be done by mail to the last known address. Only accounts where the residence was last listed in Illinois are covered under this part of the unclaimed property laws.

Filing state reports

Financial institutions including banks, brokerages, credit unions and mutual fund companies are required to file a report of abandoned property on an annual basis. Accounts that have no balances are not exempt, companies must file a “negative holdings” report. Life insurance companies and utility companies (who may have deposits on record) are required to file not later than May 1 each year. Other financial institutions are required to file not later than November 1 annually.

State outreach to owners

The Illinois State Treasurer provides an online database which may be searched for unclaimed property. In addition, owners of property may see their names published in the newspaper. The online database is updated several times annually while the newspaper publication process is done twice a year. In some cases, the Treasurer may also match names to property ownership records and notify the account owner directly.

Fees to collect property

Some owners of unclaimed property may receive notification from a “finders” service informing them that for a small fee, they can help the owner collect their property. The Illinois Treasurer has posted information on their online site indicating that this is an unnecessary burden. The state does not charge the rightful owner (or heirs or rightful representative) any fees for claiming funds.

The claim process

Those who believe that they have property that is held by the State of Illinois that was escheated per the unclaimed property laws in Illinois may request a claim form from the state. The claim form is called the “Cash Dash Claim Form” and may be printed from the website. This form must be filled out in its entirety and the appropriate backup documentation must be supplied to the Treasurer to claim assets. There is no time limit for claiming assets, the state holds them in perpetuity for the rightful owner or the heirs of the rightful owner.

Property is often abandoned due to a move, divorce or a death. In many cases, heirs are not aware that a parent, grandparent or other family member had funds in an account with another institution. The unclaimed property laws in Illinois state that the Treasurer will hold these assets in perpetuity and that they may be claimed at any time.

Learn more about this author, Doreen Martel.
Click here to send this author comments or questions.