by Doreen Martel

Created on: December 05, 2011   Last Updated: December 07, 2011

COMAR Regulation 03.05.01.01 governs unclaimed property in the state of Maryland.  Various parts of the unclaimed property laws govern how the Comptroller handles property, how property holders must report property and what rights account owners (or heirs) have to the property. These laws further provide the Comptroller with specific rights regarding physical property such as those found in safe deposit boxes.

Account holder regulations

All account holders in the State of Maryland are required to report abandoned property on an annual basis. This includes government offices, courts, banks or any other entity that may be holding funds on behalf of an account owner. Property is considered abandoned when the account holder has been out of contact with the account owner for a period of three years. The one exception to this is for holders of traveler’s checks which may be held for up to 15 years.

Account holders who fail to report abandoned property on an annual basis can face stiff fines as well as the potential of an audit of all of their accounts. Most businesses must report annually in October, the one exception is insurance companies who must report in April. It is important to note that nursing homes, insurance companies, utility companies as well as banks (or other financial institutions) must file a report even if the account balance is zero (or negative).  Prior to reporting property as abandoned (or unclaimed) the account owner must be notified at their last known address (not less than 30 days before being escheated).

Account owner rights

Account owners have the right to reclaim abandoned property at any time with no fees. Claims must be filed with the Comptroller’s office and must claim proof of ownership, photo identification and in some cases proof that the owner actually did business with the company who turned the property over to the state.  In cases where the original account owner is deceased, the heirs or administrator (or executor) of their estate may file a claim on behalf of the owner.

Maryland Comptroller obligations

The Comptroller of Maryland must abide by the unclaimed property laws in Maryland.The task of the Comptroller is to return unclaimed property back to the rightful owner. When physical assets are turned over (such as stamp collections, jewelry, etc.) that was stored in safe-deposit boxes, the Comptroller holds the property for three years, has the property appraised for value and then places the items on eBay for sale.  When the the property is sold, the proceeds are turned over to the general fund for the credit of the original property owner. Items may not be bid on by the Comptroller nor any employees of the office of the Comptroller.

Maryland’s State Comptroller’s Office processed more than 49,000 claims during fiscal year 2010. In total, these claims were estimated to be approximately $47 million with an average claim size of slightly less than $1,000.  Having a basic understanding of how the unclaimed property laws in Maryland are administered may allow more people to file claims for property they are entitled to under the law.

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