Alberta Unclaimed Property and Vested Property Act

Tax and Revenue Administration
Unclaimed Property and Vested Property Act
Information Circular UP-2

Last Reviewed:	August 25, 2008
Produced by:	Alberta Finance and Enterprise, Tax and Revenue Administration
For more information:	tra.revenue@gov.ab.ca

UP-2/August 2008

UNCLAIMED PROPERTY AND VESTED PROPERTY ACT INFORMATION CIRCULAR: PROPERTY HOLDERS

NOTE: This information circular is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this information circular and governing legislation, the legislation takes precedence.

Definition of a Holder
Background
Who Must Report
Holder Responsibilities
- Reporting Process
Estates
Objections
Inspection and Enforcement
Appendix A

DEFINITION OF A HOLDER

A holder is a person or entity such as a business keeping or maintaining property, both tangible and intangible, for the owner (a person or entity).

BACKGROUND

The Unclaimed Personal Property and Vested Property Act (Act) comes into effect on September 1, 2008. The Act establishes a repository for unclaimed property as a service for owners to locate abandoned or forgotten assets.
Intangible personal property is an interest held, issued or owing by a holder, and can include:
1. money or a cheque, money order, traveller’s cheque, draft, deposit, interest or dividend;
2. a security deposit, refund, credit balance, unpaid wage or salary, unused ticket or unidentified remittance;
3. a security certificate or other evidence of ownership of an interest in a business organization;
4. a security or security entitlement;
5. a bond, debenture, note or other evidence of indebtedness;
6. money deposited to redeem shares, bonds, coupons or other securities or to make distributions;
7. an amount due and payable under the terms of an annuity or insurance policy, including a policy providing life insurance, property, casualty, accident, or sickness insurance, or workers’ compensation insurance; or
8. an amount distributable from a trust or custodial fund established under a plan to provide education, health, welfare, vacation, severance, death, share purchase, profit‑sharing, employee savings, supplemental unemployment insurance or similar benefits;

but does not include any thing or class of thing excluded by the Regulation.

Tangible personal property is any personal property, generally physical property that is not intangible personal property or land. Examples include artwork, jewellery and furniture.
Vested property is both land and personal property that comes under the ownership of the Province for various reasons, and includes:
- residual property from businesses (corporations, societies and cooperatives) struck from the Corporate Registry,
- property from Alberta residents who died with no known heirs, or
- property remaining unclaimed after 10 years.

These assets become the property of the Minister of Finance and Enterprise.

To be held in the repository, intangible property must have a minimum value, net of transfer expenses, of $250; tangible, $1000. The property can be claimed by the owner from the Minister within 10 years of its receipt by the administration.

WHO MUST REPORT

Property may become unclaimed if a holder has been unable to locate the owner after the period of time specified by the Regulation. The holder is then required to report it on the Holder Report form and forward this property to the Minister of Finance and Enterprise. See Appendix A for a list of the time periods and the types of property affected.
Unclaimed property must be reported to the Minister by a holder who:

is an individual normally resident in Alberta, or
is an entity carrying on business or based in Alberta,

whose records show an Alberta address as the last known address for the apparent owner, or
whose records do not identify the owner or an address for the owner.

Holders may apply in writing to voluntarily declare property as unclaimed before the time periods or below the dollar values specified. A reason must be given for declaring the property unclaimed. The application must be approved by the Minister before such property is paid, transferred or delivered to the Minister.

Before declaring the property unclaimed, the holder is required to try to notify the owner of the intent to transfer the property to the Minister. The notice must be issued between three and eight months before the date on which the property is to be transferred to the Minister.
The notice is to be sent to the owner’s last known address as shown in the records of the holder. It must identify the property, confirm that the property is subject to the Act, identify the holder and include all required information relating to the property. If the last known address information for the owner is known to be invalid, a notice does not have to be issued; however, this information must be provided when filing the Holder Report form.
Unless covered by an agreement with the owner, the holder cannot charge a fee for issuing the notice to the owner.

Reporting Process

The holder must determine which property is considered unclaimed by December 31 of each year. An extension of time may be granted by the Minister if the request is made before the reporting/transfer date. Property becomes unclaimed if the holder of a property cannot locate the owner of the property after the period of time outlined in the Regulation (see Appendix A). The holder must pay, deliver or transfer the property to the Minister within 120 days after December 31.
If the holder sells the property and offsets any expenses incurred under contract with the owner, the funds remaining payable to the owner are considered unclaimed property. If the holder has not sold the property and incurs fees as allowed under contract with the owner, the property is to be reported to the Minister as unclaimed along with the amount of fees the holder is legally owed. When the property is liquidated by the Minister, the fees will be paid to the holder.
The holder is entitled to charge reasonable expenses incurred for transferring the property to the Minister, with or without a contract with the owner. Allowable fees are only out of pocket expenses the holder incurs, and do not include salaries paid by the holder.
If a person or an entity that normally holds unclaimed property does not have unclaimed property in any year, the person or entity is required to submit a Holder Report form indicating that no unclaimed property is being held.
If the holder has paid, transferred or delivered the property to the Minister in error the holder may apply for return of the property by completing the Claim Form – Creditor.
The Minister may request by written notice a transfer of unclaimed personal property from a holder. In response, the holder is required to prepare a Holder Report form and a Holder Summary form, reporting the unclaimed property to the Minister or files an objection (see Objections below).
On receipt of the property claimed under paragraph 17 above, the Minister provides a notice to the apparent owner (if possible) identifying the property subject to the Act, stating that the Minister is holding the property and providing any other relevant information.
A holder may voluntarily pay, transfer or deliver property and file a report to the Minister before the property becomes unclaimed if the Minister first agrees to accept the property and issue a notice to the apparent owner.
The Minister may require the holder deliver a report, any records relating to the unclaimed personal property, or additional information within 30 days of receipt of the Minister’s request.
The holder is required to retain any records not delivered to, or requested by, the Minister for 10 years following the reporting of the unclaimed property.
The holder is relieved from liability for actions taken under this Act if the holder has met the requirements noted above.

If, within two years of receiving administrative responsibility for the estate, a representative of a person who has died without a will has not been able to determine whether any heirs exist, the representative must pay, transfer or deliver the property and all relevant information and records to the Minister with a Holder Summary form and Holder Report form. The representative is then discharged from any liability for the property.
A person who believes him/herself to be entitled to estate property may make a claim to the Minister within the time set by the Regulation.

OBJECTIONS

A holder may object to paying, transferring or delivering the property to the Minister by completing an objection form and delivering it to the Minister within 120 days after December 31 or receipt of a determination issued by the Minister.
A holder must comply with the final determination of the objection within 60 days of receipt of notification unless an appeal is filed.
An appeal to the Court of Queen’s Bench may be filed within 30 days of receipt of the final determination. A copy of any appeal should be filed with the Minister of Finance and Enterprise.

INSPECTIONS AND ENFORCEMENT

Inspection

Tax and Revenue Administration (TRA) inspectors are authorized by the Minister to enter the business premises of holders at reasonable times to inspect holders’ records and operations relating to unclaimed property. Inspectors are also authorized to copy or remove any records for further review. They are required to return original records to holders within a reasonable time.

Warrants

A court may issue a warrant to allow an inspector to enter and search any business premises or other property.

Enforcement

If a holder has not paid, transferred or delivered unclaimed property to the Minister, the Minister may require the holder to pay, transfer or deliver the property to the Minister within 120 days of receipt of the determination. The holder may file an objection to the determination.

Offences

Any individual who does not comply with the provisions of the Act may be found guilty of an offence and liable to a fine of not more than $2,500. A corporation, on conviction, would be liable to a fine of not more than $25,000. In addition to the fine, the person or entity is required to report the property and pay, transfer or deliver it to the Minister.

This appendix summarizes the time during which various property becomes unclaimed. Refer to the Regulation, section 6(2), for more information or reference to other legislation.

TIME	TYPE OF PROPERTY
One year	personal property of a corporation, cooperative or society distributable in the course of dissolution - one year from the dissolution. personal property of a missing creditor or member of a company upon dissolution - one year from dissolution if the apparent owner cannot be found after a reasonable inquiry. proceeds of a class action - one year from distribution date. personal property held by a court, government or government organization - one year after the property becomes distributable. wages or other compensation for personal services - one year after the compensation becomes payable. deposit or refund held by a utility - one year after the property becomes payable.
Three years	life or endowment insurance policy or an annuity that has matured or terminated three years after: the obligation to pay arose; or for a policy or an annuity payable on proof of death, the date the insured might have attained if living, the limiting age under the mortality table on which the reserve is based. registered retirement savings plan, registered education savings plan or other tax deferral plan or account - three years after the earliest of date of attempted or required distribution, date of required distribution, or date the distribution is required to begin. registered retirement income fund (RIF) payments (excluding money within the RIF) - three years after the date of payment.
Five years	street certificate - five years after the dissolution of the certificate-issuing corporation. security or other equity interest in a business - five years after the earliest of an unclaimed dividend or confirmation of lost contact with the apparent owner. interest-accruing debt of a business organization - five years after the date of the earliest unclaimed interest payment. demand or savings deposit, or GIC - five years after the later of maturity, or last indication of interest by the apparent owner. a savings or other deposit without a fixed period or that does not mature - five years after the date of last interest shown by the apparent owner. a savings or other deposit without a fixed period or that does not mature - five years after the date of last interest shown by the apparent owner. all other properties not listed - five years after the earliest of the apparent owner's right to demand the property, or the date on which the obligation to pay arises.
Seven years	money order - seven years after issuance.
Fifteen years	traveller's cheque - 15 years after issuance.