Mahalo for supporting Honolulu Star-Advertiser. Enjoy this free story!
QUESTION: My father died 10 years ago and left several accounts that our family did not know about. When we checked the state’s Unclaimed Property website, we found accounts worth a few thousand dollars. I followed the site’s instructions and mailed all the forms at the beginning of November. I asked the state to contact me if I missed anything or if they had questions. It’s been more than three months, and I have not heard anything. When I call, the recording always says they are busy, so call back later. Each time I call back, it’s the same recording, so I can never reach anyone. A friend found an account for himself on the site, and it took more than two months to get a letter asking for other information. After more than three months, he is still waiting for payment. If this department is short-staffed, shouldn’t they bring in temporary help to clean up the backlog? Is the state just delaying so the money will default to their general fund?
ANSWER: We’ve been told, and you have verified receiving, that a letter recently was sent requesting more information.
In your case the time required to review and process your claim was largely due to its complexity, said Luis Salaveria, deputy director of the state Department of Budget and Finance. It took time to determine the documents needed to establish the legal heir or beneficiary for the single and joint accounts, as well as documentation to determine who is entitled to the claim.
The delay in processing claims is not because the state is hoping to get the money by default, he said. Unclaimed funds "do not escheat" (revert) to the general fund.
"They are held in perpetuity for the owners or their heirs to claim the property," Salaveria said. The burden "is upon the state to ensure the proper level of due diligence is completed to ensure the assets are returned to the rightful owner."
THE PROCESS
Last year we were told a shortage of staff and a near doubling of claims from 2011 to 2012 resulted in some claims taking months to process. (See is.gd/kQCdU1.)
A system conversion and upgrade of the Unclaimed Property Division done last year also slowed processing.
"The new system implementation and the staffing needed to support that effort did result in a slight increase in the backlog, resulting in current claims taking longer than four weeks to process," Salaveria said. "However since the system went live at the end of 2013, the division has been diligently working to reduce the backlog."
As the staff gets used to the new system, "we fully expect to further minimize the backlog and processing time," he said, although he cautioned that there will always be a difference between processing simple and complex claims.
In 2013 the division processed 6,500 claims totalling $5,429,942. So far this year it has processed 5,207 claims totaling $5,347,773.
Although the number of claims in 2013 was fewer than the 10,012 processed in 2012, it "reflects a change in data since moving to the new system," Salaveria said.
Under the old system, every item had a unique claim number. Now a single claim number can refer to multiple items.
Salaveria said he’s asked for "a more thorough analysis at year’s end to see the improvements resulting from the upgrade."
For information on unclaimed property, including to search to see if you might have some forgotten asset, go to budget.hawaii.gov/finance/unclaimedproperty.
MAHALO
To an honest person. I left Don Quijote and was walking to the bus stop on Kapiolani Boulevard one day last month when I realized I had dropped my credit card and bus pass along the way. I retraced my steps; no luck. But my phone was ringing when I opened my apartment door, telling me someone had turned them in to the store. Also, mahalo to people who see me picking up rubbish as I walk to and from destinations, tossing it into their bins and never yelling, "Knock it off, lady!" — The Little Gray Hen
Write to “Kokua Line” at Honolulu Star-Advertiser, 7 Waterfront Plaza, Suite 210, 500 Ala Moana Blvd., Honolulu 96813; call 529-4773; fax 529-4750; or email kokualine@staradvertiser.com.
80