When Do Banks Declare Lock Boxes Abandoned?

Bank lock boxes are like piggy banks for adults.

Bank lock boxes, or safe deposit boxes, are a little-understood function of banks for most people. Anyone can rent a lock box at their local bank and keep their valuables inside.

Reasons

The most common reason banks declare lock boxes abandoned is that the rent on the box is no longer being paid. The death of the owner is a common trigger for this. Another time this happens is when the owner of the box closes the checking account used to pay for the box.

Time Frame

State laws vary about when a box can be declared abandoned, but the general process is the same. The state of Florida, for example, allows banks to send letters when the rent is three months late that gives the owners 30 days to pay the rent or close the box. If the owner does not respond the box must be inventoried and stored. The contents are the sent to the state unclaimed property office and auctioned.

Reclamation

Property can not be reclaimed after the auction. However, the state holds the money in trust for you (minus certain fees) at its unclaimed property office. This office is usually part of the state treasury department. There is no statute of limitations on claiming this money.

References

• Foreign Born: Safe Deposit Box Guide
• Bank Rate: Ins and Outs of Safe Deposit Boxes