We have guardianship accounts held as certificates of deposit (CDs) that were established under court orders prohibiting any withdrawals until the beneficiary reaches the age of majority. We have no other accounts for or contact with the guardians and minor beneficiaries for these accounts. Under the new Illinois unclaimed property law, do we have to report and remit these CDs to the state if there is no contact within three years, even if the minor has not yet reached the age of majority?

No, the three-year abandonment period will not begin to run until the account beneficiaries reach the age of majority — assuming that the accounts were established as minor guardianship accounts under the Illinois Probate Act of 1975, or as custodial accounts under the Uniform Transfers to Minors Act (UTMA).

The new Illinois Revised Uniform Unclaimed Property Act (Illinois RUUPA) includes special provisions applicable to guardianship and custodial accounts for minors. If an account was established for a ward under the Illinois Probate Act of 1975, the account would not be presumed abandoned until “3 years after the minor attains legal age.” If an account was established under the UTMA, the account would not be presumed abandoned until three years after the beneficiary reaches the age of majority, or mail is returned as undeliverable, whichever is later.

For resources related to our guidance, please see:

Illinois RUUPA, 765 ILCS 1026/15-204(d) (“Notwithstanding any other provision of this Act, money of a minor deposited pursuant to Section 24-21 of the Probate Act of 1975 shall not be presumed abandoned earlier than 3 years after the minor attains legal age. Such money shall be deposited into an account which shall indicate the date of birth of the minor.”)

Illinois Probate Act of 1975, Section 24-21, 755 ILCS 5/24-21(a) (“If the estate of a ward consists only of money, on the petition of the representative of the estate or of the representative of an estate of which the ward is a legatee or heir, or of any other interested person, or on its own motion, the court may, if it appears practicable and to the best interests of the ward to do so, order the money (1) deposited in a bank to the credit of the ward . . . .”)

Illinois Probate Act of 1975, 755 ILCS 5/1-2.17 (“‘Ward’ includes a minor or a person with a disability.”)

Illinois RUUPA, 765 ILCS 1026/15-204(a) (Property held in an UTMA account “is presumed abandoned if it is unclaimed by or on behalf of the minor on whose behalf the account was opened 3 years after the later of:

(1) except as in subparagraph (2), the date a communication sent by the holder by first-class United States mail to the custodian of the minor . . . is returned undelivered to the holder by the United States Postal Service;

(2) if a communication is re-sent within 30 days after the date the first communication is returned undelivered, the date the second communication was returned undelivered; or

(3) the date on which the custodian is required to transfer the property to the minor or the minor’s estate . . . .”)

Illinois Uniform Transfers to Minors Act, 760 ILCS 20/10(a)(2) (“Manner of Creating Custodial Property and Effecting Transfer; Designation of Initial Custodian; Control. (a) Custodial property is created and a transfer is made whenever: . . . (2) money is paid or delivered to a broker or financial institution for credit to an account in the name of the transferor, an adult other than the transferor, or a trust company, followed in substance by the words: ‘as custodian for …………… (name of minor) under the Illinois Uniform Transfers to Minors Act . . . .’”)

Illinois RUUPA, 765 ILCS 1026/15-201(6) (“When property presumed abandoned. 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) a demand, savings, or time deposit, 3 years after the later of maturity or the date of the last indication of interest in the property by the apparent owner, except for a deposit that is automatically renewable, 3 years after its initial date of maturity unless the apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal; . . .”)