Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 393.010, 393.040, 393.110, 393.130, 393.140,
393.150
NECESSITY, FUNCTION, AND CONFORMITY: KRS 393.280(4) allows the
State Treasurer to promulgate administrative regulations and any reasonable and
necessary rules for the enforcement of KRS Chapter 393. KRS 393.130 allows the
holder of unclaimed property or the Division of Unclaimed Property, Kentucky
Department of Treasury, to turn that property over to a claimant upon proper
proof. This administrative regulation establishes requirements for claims for
unclaimed property.
Section 1. Entities
to Whom Claims Shall Be Filed.
(1) A claim for
unclaimed property held in an interest-bearing demand, savings or time deposit
held in an account assignable to the Department of the Treasury under KRS 393.130(5) shall be filed in writing with the holder of the unclaimed
property.
(2) A monetary claim for
unclaimed property not held in an interest-bearing demand, savings or time
deposit account shall be filed in writing with either the Department of the
Treasury or the holder who remitted the unclaimed property to the Department of
the Treasury.
(3) All other claims
for unclaimed property shall be made in writing and filed with the
department.
Section 2.
Proof.
(1) Upon receipt of a claim for
unclaimed property which has been transferred to the department by the apparent
owner or a holder seeking to recover money paid to an apparent owner, the
Department of the Treasury shall determine whether or not there is sufficient
proof that the claimant is entitled to the claimed property.
(2) Documentation to prove ownership may
consist of one (1) of the following:
(a)
Driver's license or other government-provided picture identification;
(b) A document proving Social Security
number;
(c) Copy of birth
certificate;
(d) If the owner of
the property is deceased, a copy of death certificate and one (1) of the
following:
1. Copy of probate
distribution;
2. Copy of an order
of the court appointing an administrator to an estate;
3. A copy of an order from the court
dispensing with administration; or
4. A small estate affidavit;
(e) Copy of marriage
certificate;
(f) Copy of divorce
decree;
(g) A signature
verification card of a financial institution; or
(h) Copy of guardianship or trust
agreement.
(3) If the
claimant documents that the items required by subsection (2) of this section
are not available or not applicable, the claimant may submit for consideration
use other documentation in support of the claim including the following:
(a) An income tax return;
(b) Adoption records;
(c) Court records;
(d) A certificate of deposit;
(e) Stale dated checks;
(f) Public or business records;
(g) Copy of documentation providing a
connection with the reported address or business for the year cited as the
"Date of Last Transaction" in the holder's report;
(h) Newspaper articles including a marriage
announcement, birth or obituary notice;
(i) Family or church records;
(j) Personal correspondence; or
(k) A notarized affidavit executed by an
individual other than the claimant having knowledge of a claim.
(4) In addition to the items
required by subsection (2) of this section, additional evidence which may be
considered by the Department of the Treasury to establish ownership for
property valuing over $400 shall include:
(a)
For a checking account:
1. A check showing the
account number for that bank; or
2.
A statement on that account which contains the account number;
(b) For a savings account:
1. A copy of the passbook showing the account
number; or
2. Correspondence
referencing the account number;
(c) For a safe deposit box:
1. A copy of the safe deposit box rental
receipt; or
2. Correspondence
referencing that rental;
(d) For wages, a copy of:
1. A W-2 form;
2. Tax records;
3. Pay stub; or
4. Correspondence relating to that
employment;
(e) For
stocks or dividends:
1. A copy of a stock
certificate of the business entity reported;
2. Correspondence relating to the stock
certificate; or
3. A statement from
the broker showing ownership of that stock;
(f) For a bearer bond:
1. If the Department of the Treasury holds
the original bond, a copy of the bond or information that establishes the
claimant's relationship to the bonds; or
2. If the Department of the Treasury held the
original bond but sold the bond pursuant to statute, the claimant shall use
evidence which establishes ownership of the bond, including:
a. A copy of the bond; or
b. A list of serial numbers and a
relationship to the holder;
(g) For a certificate of deposit:
1. A copy of the certificate of deposit;
or
2. A record of
purchase;
(h) For
insurance:
1. A copy of the policy;
or
2. Correspondence relating to
that policy;
(i) For
court funds, a copy of the court decree or court order for the case that was
the source of the funds, including but not limited to:
1. Probate;
2. Condemnation;
3. Quiet title;
4. Divorce;
5. Child support; or
6. Appearance bond;
(j) For vendor checks:
1. A copy of accounts receivable billing, or
invoices;
2. Bills of
lading;
3. Correspondence with the
holder reporting and remitting the funds that show a business relationship for
each payment; or
4. A statement
that the funds are still considered to be due and owing on the
account;
(k) For a claim
by an heir of a listed owner:
1. Final decree
of probate; or
2. If the estate is
intestate:
a. An order of the court dispensing
with administration; or
b. A court
order appointing an administrator to the estate and a letter from the
administrator of the estate allowing the release of the property from the
estate;
(l) For
cashier's checks, the payee shall tender proof of identity as the owner, unless
the purchaser submits sufficient documentation to prove a superior claim;
or
(m) For a claim where ownership
cannot be established by proof as required by paragraphs (a) through (l) of
this subsection, the Department of the Treasury may accept alternative proof to
establish ownership.
(5)
(a) A claim by a finder or agent of a listed
owner shall be based on a notarized contract with the owner or heir of the
owner. The Department of the Treasury may contact the owner or claimant to
verify that the owner or the claimant is aware of the full amount of unclaimed
property involved.
(b) The finder
or agent shall provide to the Department of the Treasury:
1. A notarized copy of the contract showing
names, current addresses, and Social Security numbers or Federal Employer
Identification numbers of all parties to the contract;
2. A notarized affidavit from the claimant
stipulating that the finder or agent has explained to the claimant the law on
unclaimed properties and that unclaimed property due the claimant may be
claimed without a fee, free and simple; and
3. The same documentation that the claimant
of the unclaimed property would otherwise have to exhibit in order to show
proper proof of entitlement to the unclaimed property.
(6)
(a) Payment of claims valued at $4,999.99 and
below shall be authorized upon review of documentation submitted by the
claimant and approval by two (2) Treasurer-designated Department of the
Treasury employees.
(b) Payment of
claims valued above $4,999.99 shall be authorized upon review of documentation
submitted by claimant and approval by three (3) Treasurer-designated Department
of the Treasury employees.
(c)
Payment shall be made:
1. In the name of, and
mailed to, the established owner; or
2. To the executor, executrix, administrator,
administratrix of the estate or personal representative; the court appointed
guardian; or to an heir for distribution to other heirs, if any.
Section 3.
Stock Certificates. A stock certificate received through a safe deposit box or
directly from a holder shall be released to the rightful owner by one (1) of
the following methods:
(1) Stock certificate
in the owner's name;
(2) Stock
certificate in the name of the Department of the Treasury with an affidavit
ready for transfer to the owner;
(3) Payment of money received for the
certificate if the stock has been redeemed by the issuer or has been sold in
accordance with state law; or
(4)
If the stock certificate is obsolete and in the original owner's name, the
stock certificate shall be transferred directly to the owner. If the original
owner is deceased, the lawful heirs shall determine disposition.
Section 4. Duty of Holder Who
Receives Claim.
(1) If a claim for unclaimed
property is made to a holder, the holder may direct the claimant to the
Department of the Treasury for review and payment of the claim.
(2) If the holder chooses to consider the
claim for payment, the holder shall, prior to paying the claim, inquire in
writing to the Department of the Treasury to determine whether there have been
any other competing claims for that property.
(3) The Department of the Treasury shall
respond to the holder in writing within ten (10) business days of receipt of
the inquiry indicating whether another claim has been paid out for the property
at issue or whether there is a competing claim pending. If there is a competing
claim or if another claim has been paid out for the property at issue, the
Department of the Treasury shall notify:
(a)
The holder and the holder shall not pay the claimant; and
(b) The claimant in writing of his right to
request a hearing on his claim.
Section 5. Payment of Claim.
(1) If a claimant submits a claim for
unclaimed property to a holder, and the holder determines that the claimant is
entitled to the property and that there have been no other competing claims
paid out of the same property, the holder may pay the claimant.
(2) If the property was not held in an
interest-bearing demand, savings or time deposit account, and if the property
has already been turned over to the Department of the Treasury, the holder
shall be reimbursed by the Department of the Treasury for a claim paid if the
holder submits:
(a) Written confirmation from
the Department of the Treasury that the Department of the Treasury was
contacted prior to the payment of the claim to determine if there were any
conflicting claims or if there were any prior paid claims on the
property;
(b) An affidavit which
identifies the proof used to determine that the claimant was entitled to the
property. The proof shall meet the requirements established in Section 2 of
this administrative regulation. A copy of the proof relied on shall be attached
to the affidavit; and
(c) Proof
that payment was made to the claimant.
STATUTORY AUTHORITY: KRS 393.280(4)