The Unclaimed Property Act
- The Unclaimed Property Act provides the statutory
framework for the regulation of unclaimed property in the province. This act came fully into force in July
2000. The purpose of this
legislation is to unite owners with their unclaimed property held by both
government and non-government holders.
The Unclaimed Property Program
- The program protects the public interest by requiring
organizations (including government) to make reasonable efforts to locate
an owner and return the property.
- An estimated
$15 million goes unclaimed by B.C. residents each year, 90 per cent of it
in the financial sector. The
government holds the remaining 10 per cent.
- Unclaimed property arises from insurance, securities
dealings, trusts and other activities where funds could not be distributed
to the owner, and is held by organizations such as insurance companies and
securities traders.
- Government holds undistributed estates, court funds,
unclaimed wages and other types of property under a wide array of
statutes.
Transfer of the
Program
·
The Ministry of Finance, in its fiscal
2002/03 service plan, committed to divesting itself of its unclaimed property
responsibilities by 2003/04. As a result, a new approach to the delivery of the
program has been developed that will continue this service to the public,
through a new delivery mechanism.
·
Government has retained its governance
role and the current model for the regulation of unclaimed property. However, in keeping with its commitment to focus
on core services, the program will be delivered by a non-profit organization,
outside of government.
- The government has reached agreement with the
Vancouver Foundation for the delivery of this service to the public. The
foundation will provide the same service to the public that is currently
provided by the Ministry of Finance, through a society created and
controlled by the foundation, called the British Columbia Unclaimed
Property Society.
The Foundation
- The Vancouver Foundation was selected because of its
organizational capacity to deliver this program, and its broad,
philanthropic leadership throughout the province. The foundation has over
60 years of experience in managing permanent endowment funds in a trusted
manner.
- The Vancouver Foundation works with charities and
communities throughout the heartlands of B.C., not just the city of
Vancouver.
How the Program Will Change
- After April 1, 2003, unclaimed funds held by
government and some other non-government organizations will be transferred
to Vancouver Foundation’s British Columbia Unclaimed Property Society.
- The society will continue to try to locate owners,
maintain a public database of unclaimed funds, and evaluate and process
claims. The society will also evaluate any claims for property that was
transferred to government prior to April 1, 2003.
- Unclaimed money held by
government and some other holders will be transferred to the society for
management as required by the Unclaimed Property Act. All claims and administrative expenses
of the society will be funded by the money transferred to the society,
investment income earned on funds while they are held by the society, and
fees that may be charged by the society for processing approved claims.
·
The society
is required to retain enough money on hand to always meet its obligations under
the act and to cover its administration expenses. Funds in excess of what is needed to meet their obligations and
operating expenseswill
be distributed to charities throughout
British Columbia. In this way,
unclaimed property will benefit all residents of the province through the
support of local initiatives.
·
The amounts
available to transfer to charities will fluctuate based on the number and level
of claims made each year. While a
precise amount is difficult to predict, past experience suggests that each
year, between $500,000 and $2 million will be generated to benefit charities
across British Columbia.
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