Summary
Federal lawmakers are proposing a new bill to limit states from taking control of unclaimed financial assets, such as bank accounts and investments, without clear proof that the owner is deceased. This move comes after a CBS News investigation revealed that states, especially California, hold billions in unclaimed property and often use the money for their budgets, returning only a small percentage to the rightful owners.
Key Facts
- California holds over $15 billion in unclaimed property, including uncashed checks and old bank accounts.
- The state uses this money for general operations but must return it if the owner claims it later.
- California returns only about 3.5% of the unclaimed property it holds.
- States across the U.S. collectively hold tens of billions in unclaimed property and sometimes use it for state projects.
- The SAFER Act, introduced by Democratic Rep. Sam Liccardo and Republican Rep. Mike Lawler, would restrict states from taking ownership of such assets unless the owner is confirmed dead or meets other strict conditions.
- Currently, states can take assets after inactivity periods as short as three years, even if owners are still alive.
- Senator Elizabeth Warren is calling for a nationwide review of state unclaimed property systems due to concerns about increasing amounts of Americans’ money being taken by states.
- The proposed legislation aims to protect Americans’ savings and investments so they benefit from their long-term growth.
