We plan to drill a safety deposit box that has been past due and unclaimed for more than five years. However, the last living joint leaseholder recently came forward to claim the contents. Can we give him the contents of the box, or do we have to remit the contents to the State Treasurer?

You may give the contents of the safety deposit box to the joint leaseholder.

The Uniform Disposition of Unclaimed Property Act requires financial institutions to report and remit abandoned property to the State Treasurer. If contents of a safety deposit box are unclaimed for five years after the leased expired due to nonpayment — which is what happened here — they are presumed abandoned and are subject to remittance.

However, the clear intent of the Act is to have the property returned to its owner. For example, before unclaimed property is reported to the Treasurer, the Act requires financial institutions to reach out to the owner to help them avoid a presumption of abandonment.

In addition, we spoke to an agent in the Unclaimed Property Reporting Division of the Illinois State Treasurer’s Office who stated that a bank has the discretion to deal with this sort of situation “in house.” According to the agent, whether a bank should remit unclaimed property is a compliance issue that turns on whether the bank followed is policies, as well as the law, to confirm that the property truly is abandoned.

In this case, the owner has claimed the property, so it is not abandoned. Consequently, although more than five years have passed since the lease expired, you have the discretion to turn the contents of the box over to the owner.

For resources related to our guidance, please see:

Uniform Disposition of Unclaimed Property Act, 765 ILCS 1025/2 (d) [Repealed effective 1/1/18] (“The following property held or owing by a banking or financial organization is presumed abandoned: … Any funds or other personal property, tangible or intangible, removed from a safe deposit box … on which the lease or rental period has expired due to nonpayment of rental charges or other reason, or any surplus amounts arising from the sale thereof pursuant to law, that have been unclaimed by the owner for more than 5 years from the date on which the lease or rental period expired, subject to lien of the holder for reimbursement of costs incurred in the opening of a safe deposit box as determined by the holder's regular schedule of charges.”)

Uniform Disposition of Unclaimed Property Act, 765 ILCS 1025/11(e) [Repealed effective 1/1/18] (requiring banks to attempt to communicate with the owner in order to prevent the property from being presumed abandoned)

Illinois State Treasurer, Unclaimed Property Reporting Guidelines (“Make sure to perform your due diligence as required by the Act. Contact owners at their last known address and have them reactivate accounts, cash dividend checks, etc. If contact cannot be established, remit the property.”)