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Learn the unclaimed property rules and their time limits for the state of Massachusetts.
In Massachusetts, all things relating to unclaimed property are handled by the Abandoned Property Division of the Office of State Treasurer.
Massachusetts businesses have a number of responsibilities concerning unclaimed property. Initially, written notice must be sent to the apparent owner of the unclaimed property, if known. If the property remains unclaimed, businesses have a number of filing and reporting requirements to fulfill. Most importantly, businesses are required to turn over any and all unclaimed property to the state. Stiff penalties apply to businesses who fail to comply with any of these requirements.
Individuals should know that Massachusetts property is generally presumed abandoned after one to 15 years of inactivity by the owner of the property. However, this time limit varies depending on the type of property involved. Once abandoned property is turned over to the state by a business, an individual then has the burden of reclaiming it from the state.
A holder of abandoned property reports the property to the Massachusetts Office of the State Treasurer by November 1 of each year as of the prior June 30 or the end of the prior fiscal year. Life insurance companies and persons holding unclaimed property from the demutualization or other reorganization of a life insurance company must file the report before May 1 of the year as of the prior December 31.
The Treasurer may extend the date of filing a report and turning over property for up to two months at the written request of the holder if the Treasurer deems that the extension is warranted. When an extension is granted, the notice requirement periods are similarly extended.
The report must include the following information:
Prior notice to owner. The holder of abandoned property must send a notice by first class mail to the owner of the property at least 60 days before filing the annual report, so that the owner may rebut the presumption of abandonment.
Delivery. a holder of abandoned property that has filed a report must pay or deliver the property to the Treasurer by November 1, or in the case of life insurance companies and persons holding unclaimed property from the demutualization or other reorganization of a life insurance company, May 1.
Recordkeeping. A business must generally keep records for five years of checks, money orders, traveler's checks and other similar written instruments sold in the commonwealth. Holders of other property keep records for five years of the name and last known address of the owner.
Penalties. If a court has to order a person to provide records to the Treasurer, the court may include a daily rate of $150 per examiner as the cost of conducting the examination of records. Any person who fails to timely report abandoned property may be fined up to $500, unless the person acted in good faith.
A person who fails to timely deliver unclaimed property to the Treasurer pays interest at the rate of 12 percent per year (or the rate otherwise established) on the property from the date the property should have been paid or delivered.
In Massachusetts, property is generally presumed abandoned after one to 15 years of inactivity by the owner of the property. However, this time limit varies depending on the type of property involved. Once abandoned property is turned over to the state by a business, an individual then has the burden of reclaiming it from the state.
Locating abandoned property held by the state. The Office of the State Treasurer publishes notice of abandoned property, other than written instruments valued at $100 or more, by March 1, or September 1 for life insurance company reports, at least once a week for two consecutive weeks in a newspaper of general circulation containing the names of the owner, insured, or annuitant, the name and address of the holder, and a description of the property. The Treasurer also mails notice to the owners of abandoned property whose addresses are known.
Unclaimed property held by the state may also be found by searching the state's website.
To find out if other states may be holding your unclaimed property, search the national database established by the National Association of Unclaimed Property Administrators (NAUPA).
Filing a claim. A person may establish a claim to property surrendered to the Treasurer at any time. If the property has not been liquidated, liquidation proceedings are delayed until the rights to the property are determined.
A claim is initiated by searching the state's website. If a search turns up a claimant's name, follow the links to initiate an online claim.
The Treasurer sends written notice of the determination of a claim to the claimant. Within 20 days, the claimant may apply for a hearing and redetermination of the claim. The Treasurer will make a decision within 30 days after the hearing.
Within 20 days of receiving notice from the Treasurer a claimant adversely affected by the decision may appeal to the district, municipal, or superior court. Within 20 days of the court decree, a claimant adversely affected by the court's decision may appeal to the supreme judicial court.
If you're looking for additional information on unclaimed property, we recommend contacting your state's governmental agency that oversees the administration of this area of the law. For help in answering a specific unclaimed property question in Massachusetts, contact the following:
Massachusetts Abandoned Property Division
One Ashburton Place, 12th Floor
Boston, Ma 02108-1608
Phone: (617) 367-0400, 1-888-344-MASS (toll-free Massachusetts only)
Fax: (617) 248-3944
|Property Type||Presumed Abandoned After|
|Bank account||deposits: three years|
|Checks or drafts||three years|
|Demutualization proceeds||three years|
|Gift certificates, gift cards, and credit memos||Gift certificates and gift cards are exempt from unclaimed property reporting requirements.|
|Insurance policies||Life or annuity policies: three years|
|IRAs or retirement funds||employee benefit trust distributions: three years|
|Money orders||seven years|
|Other intangible personal property not otherwise specified||three years
Includes security deposits
|Proceeds from class action suits||no specific provision|
|Property distributable by a business association in the course of dissolution||one year|
|Property held by courts or public agencies||three years|
|Property held by fiduciaries||three years|
|Safe deposit boxes||no specific provision|
|Shares in a financial institution||no specific provision|
|Stocks, dividends, and distributions||three years|
|Traveler's checks||15 years|
|Deposits and advances owed utility company customer||no specific provision|
|Wages or salaries||no specific provision|