New Pa. law will return some unclaimed money without a claim (2024)

A newly passed bill allows Pennsylvania to return unclaimed funds to a person without a claim. The law was originally proposed by state Treasurer Stacy Garrity last year.

    By
  • Charlotte Keith, Spotlight PA
  • August 12, 2024
New Pa. law will return some unclaimed money without a claim (1)

This story originally appeared on Spotlight PA.

Starting next year, Pennsylvania will return some unclaimed money directly to the people it belongs to instead of requiring them to first file a claim with the state Treasury.

A bill to allow the change passed the state legislature in July with unanimous support, and was signed into law by Democratic Gov. Josh Shapiro.

The change marks a significant election year victory for state Treasurer Stacy Garrity, a Republican who proposed the legislation last year and will face Democrat Erin McClelland in November.

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“I can’t wait to get this money back to the Pennsylvanians it belongs to,” Garrity said in a statement after the law was signed.

Pennsylvania holds more than $4.5 billion in unclaimed property — money from inactive bank accounts, uncashed checks, and unused gift cards that by law must be turned over to the state. The original owners never lose their right to file a claim with the state Treasury to get their money back — but many likely do not realize it is waiting for them.

The new law addresses this problem by allowing the agency to proactively return some unclaimed money without requiring people to file claims. The change will apply only to amounts under $500 owed to a single person. For amounts over that threshold, property owed to more than one person, or to businesses and nonprofits, claims will still be required.

The state Treasury estimates that more than 70,000 people will receive money back in 2025. Still, the overall amount of money returned will be small: $600,000 in the first fiscal year, according to a legislative estimate. Pennsylvania typically returns at least $100 million each fiscal year.

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Once the law goes into effect in January, Pennsylvania Treasury officials will start sending out letters to confirm property owners’ current addresses. The first batch of checks will go out by the end of February, a spokesperson said. The agency plans to send checks out each quarter.

Since taking office in 2021, Garrity has made unclaimed property a priority, overseeing a major upgrade to fast-track claims that began under her predecessor, and directing the agency to pay some claims via direct deposit, instead of only by paper checks.

In an email to Spotlight PA, Ron Lizzi, an advocate who argues that states should return more unclaimed property, described the bill as a “small step forward” but called the reform “years late” and the $500 threshold “way too low.” Other states have set the threshold for returns without claims at $5,000 or even $10,000, he noted.

Garrity originally sought a limit of $5,000. But House Democrats voted in December to lower that threshold to $100, arguing that the effort should start small and show success before being expanded. The change came as state Rep. Ryan Bizzarro of Erie, a candidate in the Democratic primary for state treasurer, attacked Garrity’s handling of unclaimed property.

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Bizzarro, who lost the primary to McClelland in an upset, described the bill in an email to Spotlight PA as “meaningful legislation that will put money back into the hands of Pennsylvanians.”

Garrity noted in a statement to Spotlight PA that “nothing prevents us from increasing the limit in the future.”

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New Pa. law will return some unclaimed money without a claim (2024)

FAQs

New Pa. law will return some unclaimed money without a claim? ›

The new law addresses this problem by allowing the agency to proactively return some unclaimed money without requiring people to file claims. The change will apply only to amounts under $500 owed to a single person.

What is the unclaimed funds law in PA? ›

Starting next year, Pennsylvania will return some unclaimed money directly to the people it belongs to instead of requiring them to first file a claim with the state Treasury. A bill to allow the change passed the state legislature in July with unanimous support, and was signed into law by Democratic Gov. Josh Shapiro.

How long before funds are escheated in PA? ›

Pennsylvania law requires that money received by the Department of Court Records, Criminal Division that is not returned or claimed must be escheated, or turned over, to the Pennsylvania Treasury Department after five (5) years.

What is the dormancy period in PA? ›

Pennsylvania Dormancy Periods

Most property types in Pennsylvania have a dormancy period of three years. Accounts are considered dormant if the owner of a property has not indicated any interest in the property or if no contact has been made for the allotted dormancy period for that property.

How to claim escheated funds in PA? ›

To search for your unclaimed property, visit patreasury.gov/claim. You can also contact one of my district offices, and we will be happy to print the claim form and process it for you. There is no fee associated with this service. The Treasury Department can be reached at 1-800-222-2046.

What is the Uniform unclaimed property Act in PA? ›

Under the Unclaimed Property Act, Holders have a duty to report property of value that is lost, forgotten, or held without activity by its rightful owner for a period of time defined by law.

What happens if the money is unclaimed? ›

Unclaimed funds are money and other assets whose rightful owner cannot be located. Unclaimed funds are typically turned over to the government after a specific period of time has passed.

What happens to unclaimed inheritance in PA? ›

If the unclaimed property is valued at $11,000 or less and it has been at least five (5) years since a personal representative to the estate was appointed, the property may be paid to the surviving spouse, child, parent, or sibling of the decedent (preference given in that order), provided the owner died a resident of ...

What is the abandoned property law in PA? ›

Abandoned Property Law in Pennsylvania

The law allows individuals and nonprofits to petition the court to be appointed as conservators, allowing them to possess and then rehabilitate the property.

Is PA unclaimed property taxable? ›

As a general rule, unclaimed property is not taxable income. do you know the source of the money like from an old bank account?

What is the 302 law in PA? ›

302 (involuntary)

General Requirements Voluntary consent to receive inpatient treatment Severe mental disability based upon clear and present danger to self or others. Overt behaviors of threats with acts to further the threats occurring within the past 30 days.

How long does a 302 stay on your record in PA? ›

How Long Does a 302 Stay on Your Record? Generally, a 302 commitment stays on your record for the rest of your life. Your attorney can petition the court to have it removed from your record in some cases.

What is a 303 commitment in PA? ›

If the doctor determines that additional in-patient days are needed, the hospital will file a 303 Commitment Petition with the courts for Extended Emergency Involuntary Treatment. If additional in-patient days are not needed, the individual will be discharged from the hospital within 120 hours.

What is PA unclaimed money law? ›

The new law addresses this problem by allowing the agency to proactively return some unclaimed money without requiring people to file claims. The change will apply only to amounts under $500 owed to a single person.

What is the difference between escheatment and unclaimed property? ›

Escheatment is the transfer of unclaimed property (abandoned property), accounts or unpaid checks to the state in which the investor or payee last resided.

What is the lost and found law in PA? ›

If a person is accused of theft of lost property in Pennsylvania, they would have had to knowingly keep the item(s) while being fully aware of who they belong to. In actuality, the person who finds the abandoned property has claim to it to anyone except the original owner.

What is the abandoned personal property law in PA? ›

If a tenant leaves or abandons their personal property at the leased premises at the time they vacate or relinquish possession, under Pennsylvania Law a landlord must provide the tenant with a ten day written notice to retrieve their personal property.

What is an unclaimed payment and why would a payment be unclaimed? ›

If a business, financial institution, or government owes you money that you did not collect, it is considered unclaimed money or property. You may be able to file for unclaimed money owed to you, or that was owed to a deceased relative if you are their legal heir.

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