Young Lawyers Network

Unclaimed Property

 In common law, property without an owner would escheat to the state or feudal authority. In the 1950s, the National Conference of Commissioners on Uniform State Laws, in association with the American Bar Association, advanced the Uniform Disposition of Unclaimed Property Act governing the treatment of unclaimed property. The most recent iteration is the Uniform Unclaimed Property Act created by the Uniform Law Commissioners in 1995. Most states have adopted one of the Uniform Acts in some form.

The Uniform Acts apply to all tangible and intangible property that has been presumed abandoned. The presumption of abandonment occurs when an owner has failed to express an interest in the property after due notice by the holder. The holder is any person in possession of property belonging to another or who is trustee in the case of trust property.

Holders of unclaimed property must file annual reports with the state. Typically, a report must include the name, Social Security or federal tax identification number, and last known address of each person believed to be the owner; the date when the property became payable to the owner; and the date of the last transaction with the owner regarding the subject property. The Uniform Acts as implemented in each state have different requirements for reporting unclaimed property. It is essential to be aware of the rules applicable to your clients’ reportable property.

Before an annual report is filed, the holder must attempt to contact the owner at her last known address to prevent the presumption of abandonment if possible. Eventually, the holder of property presumed to be abandoned must pay or deliver the property to the state.

Any holder who files the necessary reports and delivers property to the state in good faith is relieved of all liability arising thereafter from the property. The state assumes responsibility for the property once it takes custody.

Under the Uniform Acts, the state must attempt to contact the property owner by publishing a notice in a newspaper of general circulation in the county of the last known address of any owner. The advertisement must contain the names and last known addresses of apparent owners and a description of the property. The ad also must announce that the abandoned property has been placed in the custody of the state, to whom all future claims must be directed.

The Uniform Acts are custodial in nature; therefore, the apparent owner of the property can file a claim for the funds at any time, without deadline. An owner includes any person with a legal or equitable interest in the property or her legal representative; in addition, the right to claim this property passes to the apparent owner’s heirs and devisees. Although “escheat” is the term that is typically used in discussions of the Uniform Acts, the ability to file a claim continues indefinitely, so the property does not truly escheat to the state.

Because the rights of an owner in unclaimed property pass to heirs or legatees, you should be sure to check with the state to determine if any unclaimed property exists in the name of a decedent. In so doing, you can avoid having to petition the probate court to reopen an estate to deal with unclaimed property.

Although the Uniform Acts have been in place throughout the United States since the 1960s, many holders (and their attorneys) are not aware of their statutory rights and responsibilities. Every attorney who advises estates, businesses, corporations, banks, and governmental entities should understand the Uniform Acts’ basic requirements and thereby save clients potential fees and penalties.

 Ask the Mentor

 Query: What is a RPPT group and how is it different from a committee?

Both real estate and trust and estate law encompass significant substantive areas and afford many opportunities for specific subspecialties. Consequently, each Division of the Section has been divided into substantive groups so that Section members may meet and work with other Section members who have similar interests. Groups are further divided into committees that focus on more specialized aspects of the relevant substantive area of law. For example, in the Real Property Division, there is a group dedicated to leasing issues; however, within that group, there are five committees that focus specifically on retail leasing, office leasing, industrial leasing, emerging issues and specialty leases, and lease assignment and subletting. Similarly, in the Probate and Trust Division, by way of example, there is a group dedicated to income and transfer tax planning, which has five committees that focus specifically on generation-skipping transfers, estate and gift tax, fiduciary income tax, international tax planning, and tax litigation.

 

For more information about RPPT YLN, please contact:

 

Hugh F. Drake, YLN Chair

Brown Hay & Stephens, LLP

P.O. Box 2459

Springfield, IL  62705-2459

hdrake@bhslaw.com

 

Stephanie M. M. Smith, Co-Vice Chair

Williams Mullen

P.O. Box 1320

Richmond, VA 23218-1320

smsmith@williamsmullen.com

 

Elizabeth Lindsay-Ochoa, Co-Vice Chair

AXA-Equitable

1675 Broadway

Suite 1160

Denver, CO  80202-4616

Elizabeth.Ochoa@axa-equitable.com

 

 

 

Section Nominations Committee

 

Pursuant to Section Bylaw § 6.1(f), following are the names of the Section 2007–08 Nominations Committee and the Section officer and council positions to be elected at the 2008 Section Annual Meeting. Any Section member wishing to suggest a nomination should send it to one of the Nominations Committee members listed below.

 

Nominations Committee

Chair: Kevin L. Shepherd, Venable LLP, 2 Hopkins Plaza, Suite 1800, Baltimore, MD 21201, klshepherd@venable.com.

Vice-Chair: Christine L. Albright, Winston & Strawn, 35 W. Wacker Drive, Suite 4700, Chicago, IL 60601, calbrigh@winston.com.

Members: Robert C. Paul, The Rockefeller Group, 1221 Avenue of the Americas, New York, NY 10020-1001, rpaul@rockgrp.com; Patrick E. Mears, Barnes & Thornburg LLP, 300 Ottawa Avenue N.W., Suite 500, Grand Rapids, MI 49503-2311, pmears@btlaw.com; Julie K. Kwon, McDermott Will & Emery LLP, 227 W. Monroe Street, Suite 4400, Chicago, IL 60606-5058, jkwon@mwe.com.

 

Positions to be Elected, August 2008

 

Office Incumbent Eligible for Renomination?

Officers

 

Chair-Elect

Steve R. Akers

No, automatic ascension to Section Chair

 

RP Vice-Chair

Roger D. Winston

Eligible to become Chair-Elect

 

PT Vice-Chair

Alan F. Rothschild Jr.

Yes

 

Finance & Corporate

 

Sponsorship Officer

Gideon Rothschild

Yes

 

Secretary

Tina Hestrom Portuondo

Yes

 

Section Delegate

David K. Y. Tang

Yes

 

Council Members

Real Property

 

Michael J. Glazerman

Yes

Martin P. Miner

Yes

Roseleen Parker Rick

No

Elwood F. Cahill Jr.

Yes

 

Probate and Trust

 

Marc S. Bekerman

Yes

Thomas M. Featherston Jr.

No

Dominic J. Campisi

Yes

Linda S. Whitton

No

 We Can Do It…

ABA Section of Real Property, Probate and Trust Law 2007–2008

Membership Recruitment Contest

 Goal:  The goal of the ABA Section of Real Property, Probate and Trust Law Membership Recruitment Contest is to increase membership and actively involve Section members at all levels in recruiting new members.

 Who May Enter:  Open to all current RPPT Section members to recruit new Section lawyer and/or associate members.

 Deadlines:  The Recruitment Contest was launched at the Section’s 2007 Spring Symposia in Washington, D.C., beginning on April 26, 2007. The Recruitment Contest will conclude on March 17, 2008. Winners will be notified on March 20, 2008, and announced at the Section’s 2008 Spring Symposia in Washington, D.C.

 Prizes will consist of:

An expense-paid trip to 2008 Spring Symposia (coach airfare, registration fee, and hotel).

An Apple iPod Nano with a Section teleconference downloaded onto it.

A laptop computer selected by Section.