Letter: New York State May Have Your Money

Is New York state the custodian of funds titled to you? Even if you are diligent with your funds and keep records of where all your monetary accounts are being held, New York state can still become the trustee of your money. As of October 2010, the state is holding 10.5 billion dollars in its general fund that was turned over to the state Office of the Comptroller by banks, stores, brokerages, insurance companies and state agencies.

How do titled funds or checks revert to the custody of New York State until it is properly claimed by its rightful owner? The answer is that our state legislature passed abandoned property laws that govern these matters. The abandoned property law requires that organizations review their records annually and transfer accounts that have reached dormancy thresholds set by New York State to the Office of the Comptroller. The law also requires an institution to declare accounts inactive or funds as abandoned after a set time period without contact from the owner.

For example, checking and savings accounts, CDs, and escrow funds are deemed inactive after five years without any customer contact ; that is no withdrawals from or deposits into the accounts. Credit balances from consumer credit accounts, trading and investment accounts must be released to the state after three years of inactivity. Bank cheques, money orders and certified checks that are not cashed are also considered dormant after 3 years. State checks that are not cashed are released to the comptroller's office after 1 year. However, Travelers' checks have the longest shelf life – this law deems them valid 15 years after issue.

The abandoned property law requires that prior to releasing the funds to the state general fund where they are held until claimed , the financial institution must send a first class letter followed by a certified letter one month later requesting that the customer contact them. A personal response such as making a deposit or withdrawal at the bank or agency is necessary to stop the transfer process

Once transferred the owner or heirs of the accounts may then claim the funds directly from NYS. The Office of the Comptroller maintains a website where anyone can search the database and print a claim form to submit with documentation to prove ownership of the funds.

This week there are five businesses in Smithtown that can claim funds being held by the Comptroller's Office. According to spokeswoman from the unclaimed funds telephone center most accounts listed on the website are at least 5o dollars: 

1. Commack Getty

2. James P. Masciello

3. Joseph Pennachio

4. Susan Burns

5.