Millions of dollars worth of unclaimed assets wind up at the Arizona unclaimed property assistance office every year. An account holder moves, a pensioner passes away, gift certificates get mislaid. After some time has passed and contact is lost with the rightful owner, the property is turned over as unclaimed. As a business owner, you'll need to educate yourself on the laws and regulations as well as your responsibility for turning over that property to the state.

Unclaimed property in Arizona laws and regulations read similar to unclaimed property laws in other states. Every step of the recovery process is detailed by law, from how long property must go unclaimed for it to be considered abandoned to the time limit for claiming property. Consider the following:

1. Businesses must report Arizona unclaimed assets before November 1st for the fiscal year ending that same year.

2. A business must maintain records on Arizona unclaimed land and other assets for five years after the property is reported as unclaimed or three years for money orders or other financial documents.

3. Failure to comply with Arizona escheatment yields penalties under the law.

Action Steps
The best contacts and resources to help you get it done

Find a general overview of Arizona unclaimed property rules

The agency you will report the unclaimed property to, the Arizona Department of Revenue, is a great place to start. From there you can find out more about your obligations, the laws and regulations put in place and the civil penalties that can incur. They can also supply you with the forms you need.

I recommend: Read the rules on a business owner's responsibility on reporting abandoned property through the Toolkit Media Group. Review the procedure as set by statute at the Arizona Department of Revenue.

Check out the Arizona escheat rules on electronic reporting, disposal

As a holder, it will be helpful to know other facets of unclaimed property regulations. Electronic reporting the unclaimed property may be more efficient for your business especially if you turn over a large volume of unclaimed assets each year. What happens to the property once it is turned over to the state? There's another set of laws that dictate when and how officials can sell the property.

I recommend: Review the requirements to report unclaimed property electronically and also the codes you'll need to use through the Arizona Unclaimed Property Division. This statute listed through the Arizona State Legislature details disposal of unclaimed property.

Research court cases that impacted Arizona escheated property laws

Dating back to the 1860s, there were disputes over abandoned property. Court case decisions helped form policies and eventually lead to the forming of modern unclaimed property law.

I recommend: Review court cases that set a precedent in the development of federal and state laws regarding unclaimed property: Hamilton v. Brown and Pennsylvania v. New York.

A court may classify unclaimed property in Arizona as abandoned, lost or mislaid. These classifications have their origins in common law and can therefore be difficult to interpret under modern legal systems. Property that the original owner fails to claim after a specified number of years generally belongs to the finder. However, a property owner usually has a superior claim to property that a trespasser discovers.

There are specific forms and procedures to follow when claiming unclaimed property in AZ. Generally, the state serves as the custodian for Arizona unclaimed properties until the appropriate agencies review and approve the finder’s claim. Companies frequently lose property through misfortune or carelessness. Unclaimed property can be an inexpensive way to obtain equipment for your business.

There are general types of Arizona state unclaimed property:

1. Liquid assets such as a dormant bank account, safe deposit contents, unclaimed deposits or refunds, uncashed checks and unused insurance benefits;

2. Abandoned property the original owner is unlikely to return to claim. Certain property such as wrecked cars, ships or aircraft may belong to the state;

3. Property confiscated by law enforcement or repossessed by a loan company. These items are frequently auctioned off to the public.

Action Steps
The best contacts and resources to help you get it done

Find agencies that handle state of Arizona unclaimed property

Beware of sites that charge you a fee to help you find contact information for the Arizona unclaimed property division. This information should be available from your state government at no charge.

I recommend: UnclaimedMoney.us.com allows you to search for unclaimed property by name or city and state on its website. The Arizona Department of Revenue keeps a database of unclaimed property that is searchable by first and last name.

Participate in an Arizona unclaimed property auction

Most states have their own auctions to allow prospective buyers to bid on unclaimed or otherwise abandoned property.

I recommend: SeizedLuxuryHomes.com allows you to search for seized homes by zip code. You may bid on these homes at local or online auctions. Carsfrom500.com allows you to search for government auctions in your area. You can specify zip code and a search radius.

Conduct an Arizona unclaimed property search in your city

Some communities in Arizona have a department that attempts to reunite unclaimed property with its owner. This department can answer specific questions regarding lost or abandoned property.

I recommend: The Property Management Bureau for the Phoenix Police Department publishes a list of the unclaimed property that it is holding each week. The property and evidence room of the Gilbert Police Department conducts monthly auctions on unclaimed property.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The process of turning over unclaimed property in Arizona to the state is called escheatment. In business, an Arizona escheatment is most commonly an unclaimed pay check and each company must file an unclaimed property report. The company must also make a good faith effort to find the owner of Arizona escheat.
• •  Unclaimed property in Arizona that the owner deliberately hides or conceals may be a treasure trove instead of mislaid property. The property must remain concealed long enough for the owner to be dead or undiscoverable. A treasure trove may belong to the finder or the property owner.

Advice and ratings on unclaimed property in Arizona primarily consist of information on the best places to look for unclaimed property and the procedures to follow when making a claim. The Arizona government has a single department that assumes custodianship of unclaimed property for the state. County and municipal governments also may have their own unclaimed property, which may need to be turned over to the state after a period of time specified by law.

There are many commercial websites that will search for AZ abandoned property on behalf of the owner. Prospective customers of these companies should use these services with caution, as they frequently offer services that the government of Arizona provides for free. There are three general sources for obtaining advice on Arizona unclaimed property:

1. Blogs on Arizona unclaimed properties. A credible blog or forum may have posts from experts, government officials or people with first-hand experience in recovering an Arizona escheatment.
2. News articles on abandoned property in Arizona. Reporters and other journalists can provide unbiased advice on claiming Arizona escheat.
3. Government sites for unclaimed property. These sites are the best source of official advice on obtaining unclaimed property.
   

Action Steps
The best contacts and resources to help you get it done

Get advice on unclaimed property in AZ from blogs

Blogs with advice on unclaimed property in Arizona contain posts from people who have actually recovered unclaimed property. Experts may also provide general advice on the required procedures for filing a claim for property in Arizona. Government officials sometimes keep blogs about recent changes in unclaimed property law in Arizona.

I recommend: CashUnclaimed.com keeps a blog on unclaimed property, which includes advice on unclaimed winnings in the Arizona Powerball Lottery. Women's Issues provides specific advice on buying and selling guns at an unclaimed items auction in Arizona.

Study news articles that give advice on state of Arizona unclaimed property

News articles provide an objective and credible source of advice on unclaimed property in Arizona. These articles typically offer recent facts and figures for unclaimed property in Arizona. They also have instructions for filing a claim and important points of contact.

I recommend: The Arizona Daily Star has a recent article that provides advice regarding companies that offer to search for unclaimed property in Arizona. KVOA News 4 provides a report with advice on recovering unclaimed property in Arizona.

Look at official sources of advice on Arizona unclaimed funds

Government sources provide the most current information on unclaimed property in Arizona. They offer advice on the proper forms and procedures to use when making a claim for unclaimed property. Government sources also may have recent updates on the laws regarding unclaimed property in Arizona.

I recommend: The Arizona Department of Revenue has official advice for recovering unclaimed property being held by the state of Arizona. The City of Phoenix Police Department provides specific advice for recovering unclaimed property, along with current lists of unclaimed property.

The Department of Revenue within the state of Arizona is charged with recovering and returning unclaimed property to the rightful owner. Unclaimed property can range from abandoned bank accounts, stock certificates and safe deposit boxes to cars, boats and real estate.

Take the time to learn about some of the terms commonly used when dealing with unclaimed property in Arizona so that you can keep your business in compliance. Here are some of those terms along with some quality resources to help get you started.

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Holder

The holder, according to Arizona state unclaimed property law, refers to the individual, business, organization or other entity that is in possession of unclaimed property.

I recommend: Visit the website for the Arizona State Legislature for more information on the holder and the responsibilities associated with the title.

Electronic reporting

Electronic reporting is a method of reporting whereby the holder downloads compatible software, fills in the appropriate information recording the unclaimed property (including the nature of the property and the rightful owner), and submits it to the state of Arizona. This process eliminates paperwork and expedites reporting.

I recommend: Check out the official Arizona Unclaimed Property site for additional information on electronic reporting and the policies and procedures that a holder must follow within the state of Arizona.

Presumptions of abandonment

Presumptions of abandonment are legal guidelines that the state of Arizona follows to determine when a piece of property may be deemed unclaimed or abandoned. The state then has the right to claim that property in an effort to return it to the rightful owner. The timeline for abandonment varies depending on the nature of the property in question. For instance, traveler's checks are considered abandoned after 15 years while a money order is considered abandoned after seven years.

I recommend: Visit the website for Law Digest for a full explanation of presumptions of abandonment under Arizona state law.

Penalties

Penalties, in terms of Arizona unclaimed property law, refer to the amount of interest that may be charged to a business for failing to comply with the unclaimed property law. Generally this penalty is between 18% and 25%. The individual in charge of reporting may also be charged with a misdemeanor crime.

I recommend: Visit the website for Toolkit.com for additional information associated with the penalties a business or organization may face if they do not report the unclaimed property in accordance with state law.

Unclaimed property list

An unclaimed property list refers to a document that lists and details tangible unclaimed property in the possession of the city, county or state. These lists are published in the hopes of reuniting owners with their property. However, after a certain amount of time, these items may be auctioned to the highest bidder. The proceeds then go to the city or state government.

I recommend: Visit the website for Gilbert, Arizona for an example of an unclaimed property list commonly published by a town or municipality.