by Doreen Martel

Created on: December 07, 2011   Last Updated: December 11, 2011

Unlike other states where the Treasurer of the state handles unclaimed property, the unclaimed property laws in Minnesota are administered by the Minnesota Department of Commerce.  As with several other states, Minnesota laws are specific: Unclaimed property may be claimed by the rightful owner or an heir in perpetuity.

Defining abandoned property

Property is considered abandoned when a bank, business or government entity has funds on deposit for an account owner that they have lost contact with. With very few exceptions, the period of time before property is considered unclaimed is three years. Contact is specifically defined as no change of address, no deposits, no cashed checks and no telephone calls.

Reporting abandoned property

Entities that hold property for any person are required to report any property considered abandoned on an annual basis. Companies that have more than 25 abandoned accounts must use electronic filing.  There are fines in place for companies who fail to meet the minimum reporting requirements under the unclaimed property laws in Minnesota.

Physical property specifics

Physical property such as safe deposit box contents, stocks and bonds and even pieces of art are required to be reported as abandoned if they meet the guidelines of the unclaimed property laws in Minnesota. Stocks and bonds are typically sold at market value within several months of being turned over to the Commerce Department. Art that has a high market value is often loaned to local museums for display but must be returned in the event the owner (or heirs) files a claim that is found to be valid.

Rules regarding heir finders

While Minnesota does allow property owners to locate and claim property at no charge, there are still cases where property owners are contacted by property or heir finders. In these cases, the State of Minnesota forbids the finder from collecting any fees if it is less than 24 months have passed since the property was reported abandoned. In addition, the maximum fees that may be collected are limited to 10 percent.  Before a fee agreement is considered to be “in effect” it must contain a list of the reported property.  The Minnesota Department of Commerce provides services to rightful owners and heirs at no cost, most people do not need any assistance to file a claim.

Although the unclaimed property laws are not handled by the Treasurer of Minnesota, the laws are the same as they are in many other states. Property owners or their are entitled to claim property that has been escheated to the state at any time in perpetuity.  These claims will require specific documentation and if a claim is denied the claimant has the right to have a non-jury hearing in the courts. The 2011 Minnesota Statutes, Chapter 345 clearly explain the unclaimed property laws in Minnesota.

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