CLEVELAND – Unclaimed Funds in Ohio: Legislative Efforts to Simplify Claims Process
In Ohio, a substantial amount of unclaimed funds, approximately $1.7 billion, remains untouched in state accounts, awaiting rightful owners to reclaim their money. However, the complexity of the current claiming process has deterred many residents from accessing these funds. In response, State Representatives Bill Roemer (R-Richfield) and Mike Dovilla (R-Berea) are spearheading an initiative to reform the claims process through House Bill 480, aimed at simplifying access for Ohioans.
Roemer highlighted the pressing need for change, stating, “We really wanted to make it simpler and more secure to get your unclaimed funds.” The proposed legislation introduces a streamlined claims process for residents with unclaimed funds totaling less than $1,000. This simplified approach significantly reduces documentation and notarization requirements, allowing heirs of deceased individuals to claim funds without navigating the complexities of probate court.
Dovilla shared his personal experience that prompted him to advocate for reform. Initially believing the claim process would be straightforward, he was surprised to find it encumbered by extensive documentation and notarization needs. “I thought it was as simple as completing a web form,” he recounted, illustrating the barriers many face in accessing their funds.
The motivation for this bill also comes in light of impending changes in how long individuals can claim unclaimed funds. In the past, Ohio allowed indefinite retention of these funds, but a recent adjustment in state budget regulations enforces a ten-year time limit for owners to make their claims. After this period, the unclaimed funds will be redirected to support various state projects, such as the construction of sports stadiums and other developments—an initiative that advocates argue could benefit the community at large.
With the total amount of unclaimed funds reaching around $1.7 billion, the implications of the new legislation are significant. Roemer stated, “We think ten years is an appropriate time frame. And with our simplified process, people will be able to collect those funds.” By facilitating access to unclaimed money, the lawmakers hope to ensure that residents do not lose out on funds that rightfully belong to them.
This legislative effort reflects broader trends in state policies across the United States aimed at increasing transparency and accessibility regarding unclaimed property. Recent studies show that a significant percentage of residents are unaware of their potential claims, with estimates suggesting that up to 50% of individuals could be entitled to unclaimed funds in various states. As Ohio moves forward with this legislative reform, it may serve as a model for other states grappling with similar issues of unclaimed property management.
House Bill 480, if passed, represents a crucial step in improving the financial well-being of Ohio residents, providing an easier path to reclaim funds that many did not know were owed to them. This legislative movement, combined with the community-focused redirection of unclaimed funds, could lead to significant economic benefits, fostering a more informed and empowered citizenry.
