Our View: How to get your millions back from the state

Unclaimed property is big business for California’s state government.

According to the Controller’s Office, the state has accumulated nearly 29 million unclaimed assets totaling an estimated $7.6 billion. Much of it is in cash, usually from long-forgotten bank accounts, insurance policies and stocks. But there are 5,700 safe-deposit boxes and other real property. Nearly half of the cash accounts are valued at $25 or less.

The state is allowed to use that money – not take – until the rightful owners come forward to claim their assets.

Meanwhile the fund is growing. The difference between what goes out and what comes in each year is roughly $400 million, said the nonpartisan Legislative Analyst’s Office in a February report. That’s real money. The LAO called the fund “the state General Fund’s fifth-largest revenue source.”

The task of reuniting the assets with their rightful owners rests with the state controller. Upon taking office in January, Betty Yee – just like her predecessors – said she would ramp up the department’s efforts.

The good news, as The Fresno Bee’s John Ellis reported recently, is that preliminary numbers show the number of paid claims is up 27 percent compared to the previous year. It could be even better, we’re guessing, if the Legislature didn’t limit how much the Controller’s Office can spend to publicize its unclaimed property program to $60,000 a year. The LAO report noted several things the state could do to enhance its return rate.

From its February report, the LAO said:

▪ Less than $1 billion of the estimated $7.6 billion will ever be reunited with rightful owners.

▪ Yes, the state controller could make administrative changes to improve the process of sending these assets where they belong. Along those lines, earlier this year, it announced an agreement with a major stock brokerage to open its records to help find rightful owners.

▪ The onus for the program’s shortcomings rests with the Legislature.

We recognize that some assets will never end up in the right hands. As Ellis wrote of people owed money, “Maybe they’re alive, maybe not. Maybe they’re still in business. They could’ve moved. Quite possibly, they just don’t care.”

But there are tens of thousands of potential claimants who likely do care. Who wouldn’t?

Some of them reside in Stanislaus, San Joaquin, Tuolumne and Merced counties – likely representing tens of millions of dollars – plus the contents of all those safe-deposit boxes.

When folks do learn of the state’s efforts – and you can check to see if you’re owed anything by visiting http://sco.ca.gov/upd.html – they might attempt to recover assets under $1,000 via a simplified eClaim process. If it’s a simple claim, the process usually takes only 10 days to resolve, but more complicated claims can take longer. There are also companies that scour the rolls looking to make a profit. So-called “investigators” check the lists of unclaimed property for likely cases, then offer to help individuals retrieve their money – for a portion of the claim, of course.

The LAO’s report made several suggestions, including allowing residents to reclaim their property without having to file forms, as is done in Wisconsin. It also suggested that the amount of paperwork required should be reduced, as has been done in Virginia, and periodic database searches on behalf of residents.

This money belongs to hardworking Californians; the state should work harder to get it back to its rightful owners.

This story was originally published September 8, 2015 at 12:46 PM with the headline "Our View: How to get your millions back from the state."