Dear Do-It Man: I am an 82-year-old woman who has been widowed 13 months. My husband and I bought our small South Salt Lake home a few years ago to be near some of our children.
We did not make any money on the deal but the home is free of debt. The former owner is in a nursing home with Alzheimer's disease, unable to remember anything.Apparently there is some sort of unclaimed refund coming to the owner of this property. I received two letters addressed to the former owner. Both claimed she had $1,006.74 coming.
Both letters are from search companies in Salt Lake City that said they had found the information about the unclaimed money in government records.
For a fee the companies will send me the government form and a step-by-step procedure form from the department that is holding the unclaimed funds. All I have to do is sign and return a limited personal services contract and pay a fee.
The first company charges $175 if paid when I send in the signed contract; $210 ($70 when I send in the contract; $70 in 30 days; and $70 in 60 days; or $350 paid within seven days of receiving the unclaimed funds.
The second company is cheaper: $125 returned with the contract; $150 ($50 returned with the contract; $50 in 30 days; and $50 in 60 days); or $250 within 10 days of receiving the unclaimed funds.
I'm wondering if these offers are a variation on the "Spanish Treasure" scheme. Is this just a way to collect a finder's fee from me?
- N.L., Salt Lake City.
Dear N.L.: It's up to you whether you contract with search services such as these to provide information on unclaimed funds. However, you should realize you can track down unclaimed funds yourself at no cost.
Here's how.
- Check with the Unclaimed Property Division of the Utah State Treasurer, 341 S. Main St., 5th Floor, 533-4101.
Unclaimed "intangible" assets due Utahns from local governments, the state of Utah or companies doing business in Utah end up here.
Examples of "intangible" property include: money, checks, drafts, deposits, interest, dividends, income.
Credit balances, customer overpayments, gift certificates, security deposits, refunds, credit memos, unpaid wages, unused airline tickets and unidentified remittances.
Other examples: stocks and other intangible ownership interests in a business; money deposited to redeem stocks, bonds, coupons or other securities, or to make distributions; and money payable from an insurance policy.
By law, entities that hold unclaimed intangible assets must report and remit them to the Unclaimed Property Division.
The business or local government must first determine that it's abandoned property and then hold it for a required time, called a dormancy period. The dormancy period varies depending on the type of asset.
The division publishes in the Deseret News the last two Mondays of February and August a list of people with unclaimed assets.
It includes names that have been added within the last six months.
The office paid out over $2 million in unclaimed assets last fiscal year.
As far as unclaimed funds that are being held by the federal government go, you need to contact the agency involved.
Two agencies that have unclaimed funds are the Internal Revenue Service and the Federal Housing Administration.
- Internal Revenue Service. Every year the IRS generates a list of undeliverable federal tax refunds.
The refunds were returned to the IRS by the Postal Service.
Thousands of checks are returned each year because the names or addresses on the checks are incorrect or the taxpayers have moved and did not give the IRS their new address.
The number of undelivered refunds remains relatively constant each year. In 1989 and 1990 there were 72,000 undelivered refunds.
As of January, there was more than $44 million in undelivered refunds, averaging $552 a check.
If you have not received your 1991 refund check, call 1-800-829-1040.
To avoid the delay of an undelivered refund, send the IRS a change of address on Form 8822 when you move.
Or, if you file your tax returns electronically, ask that your refund be deposited directly into your bank account.
- FHA insured mortgages. The Federal Housing Adminstration issues distributive share refunds and mortgage insurance premium refunds. In some cases, those refunds are unclaimed.
To find out if you have an unclaimed refund you need an FHA case number, found on your mortgage documents. Call 524-5230 for information.
If you don't have your case number, call the FHA and ask for an application to purchase a list of people who have refunds coming. The list costs $25.
To receive a refund you must provide proof of ownership, such as a copy of a warranty deed or a trust deed marked paid in full.