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What is an unclaimed financial asset?

Unclaimed financial assets are items such as money deposits, cheques, bank drafts, investment funds or any other properties determined by country, province/state or city regulations until the owners claim them. In Canada, financial institutions with federal charter must return to proper federal institutions all unclaimed financial assets. All financial institutions following provincial regulations are required to remit all unclaimed financial assets to the designated institution. In the USA, all businesses have the obligation to return to the appropriate Office of the State Treasurer all unclaimed financial assets since the introduction of the 1954 Unclaimed Property Act and its 1981 revision.

Where do unclaimed financial assets come from?

In Canada, most of these unclaimed financial assets come from financial institutions, particularly banks, savings and credit unions, insurance and trust companies, as well as law firms, notary’s offices, pension fund managers and securities brokers or advisers. In the USA, in addition to the previously mentioned list, all businesses, no matter how large or small, hold funds that belong to others in a broad variety of forms of unclaimed financial assets.

At what point is a financial asset considered to be unclaimed property?

Considering the various set of laws, unclaimed financial assets are considered to be unclaimed property when the owner has not made a claim, performed a transaction or provided instructions in respect of the asset after a period of inactivity or dormancy equivalent of 3 years. However, that period could reach up to 10 years depending on the Country, Province or State.

What is the time limit for claiming an unclaimed financial asset?

In theory, an unclaimed financial asset could be claimed without time limits. However, in reality, a time limit is imposed by each relevant government and will vary from one to the other. Therefore, amounts under a certain limit could be kept for a period of 10 years and unclaimed financial assets of $1000 or more for more than 100 years.