We have a dormant checking account that needs to be delivered to the State Treasurer this year. The account holder died in June of 2018 without a beneficiary on the account, and we previously tried contacting the account holder’s daughter but did not receive a response. The account holder’s daughter recently passed away, and her son has inquired about the account. Can we consider this an indication of interest that resets the abandonment period, and can we proceed in resolving this matter with the son?

The son’s inquiry may qualify as an indication of interest in the account if he has a legal, beneficial, or equitable right in the account, for example as executor or administrator for the account holder’s estate. You likely will need more information to determine whether the son has a legal or equitable interest in the account.

If the son can demonstrate a legal or equitable interest in the account, we do not believe that it should be reported and remitted to the State Treasurer as unclaimed property, since the son’s activities would qualify as indications of interest in the account.

However, if the son cannot demonstrate a legal or equitable interest in the account, we recommend filing a supplemental report to update your 2020 report to the State Treasurer.

Generally, a demand deposit account is presumed abandoned if it is unclaimed by the apparent owner three years after the date of their last indication of interest in the account. However, in cases where the owner has died, the property is presumed abandoned two years from the date of the owner’s last indication of interest. In this case, even if the account holder’s last indication of interest had occurred shortly before their death, the two-year abandonment period still would have run its course by June of 2020. Since financial institutions are required to file reports “before November 1 of each year” covering “the 12 months preceding July 1 of that year,” we believe this account should have been reported and remitted to the State Treasurer before November 1, 2020.

The Illinois State Treasurer’s Reporting Property FAQs provide that if a property holder omitted some items that should have been reported on the current year report, they may submit a supplemental report that contains only the properties that were not part of the original report.

For resources related to our guidance, please see:

Illinois RUUPA, 765 ILCS 1026/15-201(6)(i) (“Subject to Section 15-210, the following property is presumed abandoned if it is unclaimed by the apparent owner during the period specified below: . . . (6) financial organization deposits as follows: (i) a demand deposit, 3 years after the date of the last indication of interest in the property by the apparent owner . . .”)

Illinois RUUPA, 765 ILCS 1026/15-201 (“Notwithstanding anything to the contrary in this Section 15-201, and subject to Section 15-210, a deceased owner cannot indicate interest in his or her property. If the owner is deceased and the abandonment period for the owner’s property specified in this Section 15-201 is greater than 2 years, then the property, other than an amount owed by an insurance company on a life or endowment insurance policy or an annuity contract that has matured or terminated, shall instead be presumed abandoned 2 years from the date of the owner’s last indication of interest in the property.”)

Illinois RUUPA, 765 ILCS 1026/15-102(21) (“‘Owner’, unless the context otherwise requires, means a person that has a legal, beneficial, or equitable interest in property subject to this Act or the person’s legal representative when acting on behalf of the owner. The term includes:

(A) a depositor, for a deposit;

(B) a beneficiary, for a trust other than a deposit in trust;

(C) a creditor, claimant, or payee, for other property; and

(D) the lawful bearer of a record that may be used to obtain money, a reward, or a thing of value.”)

Illinois RUUPA Administrative Rules, 74 Ill. Adm. Code 760.290(a), Deceased Owner (“(1) Apparent owner interest shall include the activity of beneficiaries and estate executors or other persons who have a legal or equitable right to ownership or custody of the property when the apparent owner as listed in the records of the holder is deceased.
(2) Thus, while a deceased apparent owner can no longer indicate interest in their own property, the new owner or his/her agent(s) may indicate interest in the property and, thus, prevent abandonment.”)

Illinois RUUPA Administrative Rules, 74 Ill. Adm. Code 760.300(e), Apparent Owner Interest (“(e) Interest by a Person Other Than the Apparent Owner . . . (3) If an apparent owner is deceased, apparent owner interest shall include, but is not limited to, activity of beneficiaries and estate executors or other persons who have a legal or equitable right to ownership or custody of the property.”)

Illinois RUUPA, 765 ILCS 1026/15-403(a) (“Except as otherwise provided in subsection (b) and subject to subsection (c), the report under Section 15-401 must be filed before November 1 of each year and cover the 12 months preceding July 1 of that year. Business associations which must report under this subsection (a) include financial organizations and insurance companies other than life insurance companies; all other business associations must file under subsection (b).”)

Illinois State Treasurer, Reporting Property FAQs (“I forgot some items and should have reported them on the current year report. How do I correct this? You may submit a supplemental report that contains only the properties that were not part of the original report. Please do not duplicate earlier reported properties.”)