Missing Assets, Dormant Accounts and Unclaimed Property

Canadian banks have a legal obligation to attempt written notification of account owners after the second and fifth year of inactivity. In addition, the Office of the Superintendent of Financial Institutions (OSFI) publishes owner names of all unclaimed balances worth $10 or more in the year prior to the transfer to Bank of Canada (i.e. the 9th year of inactivity). Publication is made in the Canada Gazette, available at all public libraries.

Bank of Canada acts as custodian when there has been no account activity for a ten year period and the owner cannot be contacted. Accounts worth $500 or more are held indefinitely until claimed. Interest is paid at the rate of 1.5% per annum for a ten-year period.

Balances under $500 dollars are retained for 20 years - 10 years from the date of the last owner transaction at the bank, with an additional 10-year custody period at Bank of Canada. Written claims must be received no later than December 31 of an accounts "last year" - 20 years after the year of the last transaction.

At year-end 1998, there were 770,000 unclaimed accounts worth $132 million. 88% were under $500, representing a third of the total value outstanding. The oldest account dates back to 1900. To search the database visit Bank of Canada's website: http://ucbswww.bank-banque-canada.ca or contact the Dormant Account Section at: Unclaimed Balances Services, Bank of Canada, 234 Wellington, Ottawa, ON, K1A 0G9, (888) 891-6398 / (613) 782-7802 [fax].

Revenue Canada is holding an estimated $8 million in unclaimed tax refunds since 1990. There is no time limit on claims, but no interest is paid on amounts refunded. Privacy legislation prevents publication of owner names. Citizens should contact their local tax office for additional information.

Unclaimed asset practices with regard to items other than bank accounts and tax refunds vary by province. Most programs are in the developmental stages.

The Province of Ontario does not have an unclaimed property program such as exists in the United States. The "Unclaimed Intangible Property Act" was enacted by the provincial Legislature in 1989 but never proclaimed.

While a comprehensive unclaimed property law is not in force in Ontario, the Office of the Public Guardian and Trustee does administer property that belonged to dissolved corporations that were incorporated in Ontario. The Office also administers certain estates on a last resort basis - generally where the deceased died in Ontario (or was an Ontario resident who died elsewhere) without a will and without known adult heirs in Ontario who were willing and able to administer the estate.

Contact the Office of the Public Guardian and Trustee, Suite 800, 595 Bay Street, 8th Floor, Toronto, Ontario M5G 2M6. Phone (416) 314-2800 or fax (416) 314-2781.

For inquiries about a dissolved corporation, provide any of the following if available: corporation name, date of incorporation, corporation number and a description of any assets apparently owned by the dissolved corporation.

For inquiries about an estate, provide the full name of the deceased, with date of death if available, and any other family information which could show your connection to the deceased. This office will supply information about an estate only to those persons who can demonstrate a blood relation to the deceased. For further information on to documentation required to claim a share of an estate administered by the PG., please see "How to prove you are an heir" at www.attorneygeneral.us.gov.on.ca/html/SERVE/sersvp.htm

In British Columbia, the Ministry of Finance and Corporate Relations administers the province's recently revised Unclaimed Property Act. The Unclaimed Property Office maintains a searchable database at: http://upo.fin.gov.bc.ca/ucp/UnclaimedProperty