by Michael Totten

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

Unclaimed property in Michigan is governed by Michigan's Uniform Unclaimed Property Act (1995). The purpose of this act is to protect unclaimed property and return it to its rightful owners or their heirs, even if the original bank or other company which held the unclaimed property is no longer in business.

Overview

Under Michigan's Uniform Unclaimed Property Act, all businesses and government entities must report and remit abandoned and unclaimed property belonging to owners whose last known address is in Michigan to the Michigan Department of Treasury. Even when there is no known address, all businesses and government entities incorporated in Michigan must report and remit any abandoned property to the Michigan Department of Treasury. Failure to do so may result in a 25% penalty on the business, plus any accrued interest on that penalty.

Reclaiming unclaimed property

This makes it straightforward for the legal owners of the unclaimed property to reclaim it, because all unclaimed property is held in only one place: the Unclaimed Property Division of the Michigan Department of Treasury. All unclaimed property inquiries for Michigan-based properties take place here.

All unclaimed property searches is based on 2 things: the property owner's name as it appears in an unclaimed property web search, and all previous Michigan addresses used by the property holder.

If a web search turns up unclaimed property, either in the property holder's name or in the name of his heirs, the next step is to fill out an Unclaimed Property Inquiry (Form 3433). The form should be notarized and accompanied by a copy of photo identification and social security card, as well as a copy of any documentation which accompanied legal name changes.

Property dormancy

As a rule, the holder is not allowed to impose any charge due to property dormancy. Even interest payments must still be made on the unclaimed property until it is remitted to the Michigan Department of Treasury.

However, in some cases, the holder may charge for holding the dormant property or may cease to pay interest on it. The charges may even exceed the value of the property itself. This is permitted when:

a)  The charges or loss of interest are specified in an enforceable written contract between the holder and the owner of the property,
b) The holder of the property has given written notice within 3 months of the imposition of those charges or cessation of interest,
c) The charges or cessation of interest are standard practice for the holder.

Dormancy periods before a business is required to report and remit unclaimed property vary by the type of property. For most kinds of property, dormancy periods are now only 3 years. However, there are exceptions. For more information, please consult the Michigan Department of Treasury dedicated webpage.

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