Understanding Arizona's Unclaimed Money Laws

The Unclaimed Property Law in Arizona was first enacted in 1954, aiming to centralize the repository for lost property in the state to make it easier for citizens to search for and reclaim any lost property that belongs to them.

Unclaimed property laws mandate that when firms fail to locate the owners of such assets within a specified time (usually one to three years), they must turn the property over to the Arizona Department of Revenue. The department is then responsible for safeguarding these funds, attempting to locate the rightful owners, and publicizing their names to facilitate the return of the property.

A broad range of assets fall under the definition of unclaimed property, including outstanding payroll checks, matured certificates of deposit, savings and checking accounts, uncashed dividends, unclaimed securities, and principal on debt. The law even covers esoteric items like uncashed money orders, cashier’s checks, traveler’s checks, unreturned and unused security deposits, and amounts due under insurance policies.

The state’s Unclaimed Property Unit, which holds over $1 billion in unclaimed property, operates with the principle that there is a one in seven chance of finding unclaimed property for residents of Arizona.

Governing statutes

Arizona’s unclaimed property laws are governed by specific statutes that provide a legal framework for managing unclaimed assets. The primary legal structure for unclaimed property in Arizona is contained within Title 44, Chapter 3 of the Arizona Revised Statutes.

Structure and organization of the statutes

Title 44, Chapter 3 of the Arizona Revised Statutes lays out comprehensive rules for the identification and management of unclaimed property in the state. The chapter includes detailed provisions, starting from the definitions of unclaimed property to the protocols for reporting and remitting such property to the state. These provisions outline the responsibilities and obligations of holders, which include businesses, financial institutions, and other entities in possession of unclaimed property. This framework also protects the interests of the rightful owners of assets, thus preventing the potential for legal disputes and penalties related to unclaimed property.

Key sections of law

Sec 44-306: Burden of proof as to property evidenced by a check or draft

This section requires businesses holding such property to provide clear documentation showing their right to retain the funds. Failing to meet these requirements means that the property must be reported and remitted as unclaimed.

Reporting abandoned property

Sec 44-307 outlines the specific requirements for reporting abandoned property in Arizona. Property holders must compile annual reports detailing all unclaimed assets, including the name and last known address of the property owner, the nature of the property, and the date of last contact. This report should be filed by November 1 each year for the preceding fiscal year.

For instance, a utility company accumulating unclaimed deposit refunds must review records to identify any refunds owed to customers who have not claimed their money within the required timeframe. The company must submit a comprehensive report to the Arizona Department of Revenue, listing each unclaimed deposit along with owner details.

Procedures established by 44-307 mandate property to be declared abandoned if there is no owner contact over the statutory period. Companies must also attempt to contact the owner before reporting the property.

Requirement to attempt contacting owners

Methods for contacting owners include mailing due diligence letters to the owner’s last known address, typically 60-180 days before the property is turned over to the state. Proper documentation should track these efforts, including copies of letters sent and any responses received.

Claiming unclaimed property

Claiming unclaimed property in Arizona is a straightforward process managed by the Arizona Department of Revenue. Digital platforms like Moneybot5000 are extremely useful in helping locate these assets. Simply enter your name or the name of a business, and Moneybot5000 scans official Arizona government records to try and locate any unclaimed funds. The tool provides detailed instructions on how to claim your money, helping to ensure a smooth and efficient process.

Special provisions and executive orders

Executive order 2024-01

Executive Order 2024-01, issued by Governor Katie Hobbs, directly addresses the misuse and abuse of unclaimed property records for commercial purposes. Under this order, the Arizona Department of Revenue is prohibited from furnishing records of unclaimed property holder reports for any commercial purposes. This includes lists of insured persons, annuitants, and beneficiaries. The order asserts that such commercial utilization constitutes a misuse and abuse of public records and, thus, restricts access to these records for commercial exploitation.

A.R.S. §12-886: Time limit on collecting proceeds from escheated property

A.R.S. §12-886 sets a definitive time limit for claimants to collect proceeds from escheated property. An heir, devisee, or their duly appointed representative has seven years from the time of sale of the escheated property to file a claim for the proceeds. To file a claim effectively, the claimant needs to consult official court records to determine the sale and liquidation dates, as the Department itself does not maintain records related to actual sale dates. Claims must be filed within seven years from the receipt date by the Department, with the filing deadline date clearly documented on the Escheated Estate List.

Understanding Arizona’s unclaimed property laws is critical for both individuals and businesses. These laws dictate the handling, reporting, and potential recovery of unclaimed assets, providing a crucial framework that affects a wide array of property types, including securities, bank accounts, and unclaimed payroll checks. Compliance requires meticulous management of owner contact periods and adherence to specific timeframes that determine when property is considered unclaimed.

Arizona’s statutes, primarily encapsulated in Title 44, Chapter 3, provide a structured legal framework for managing unclaimed assets. Key sections such as Sec 44-306 and Sec 44-307 outline the burden of proof for property evidenced by checks or drafts and reporting requirements for abandoned property, respectively. Compliance with these statutes is not just a legal mandate but also brings significant benefits, including the prevention of fund accumulation and facilitating the return of property to its rightful owners.