Yet another indication of the alarming increase in Unclaimed Financial Assets I keep lamenting about…The Law Society of Upper Canada just released their 2013 Annual Report.
Unclaimed Trust Funds increased by $454,215 in 2013 to $3.2 Million
Unclaimed Trust Funds (Page 2)
Unclaimed trust funds continue to increase, now totalling $3.2 M as compared to $2.7 M at the end of 2012. These are trust monies turned over to the Society by lawyers who are unable to locate or identify the clients to whom the monies are owed. To date, monies returned to clients from the fund have been nominal. By statute, the Society administers the unclaimed trust funds, in perpetuity, and is entitled to reimbursement
for administrative expenses to a limit of the annual income earned on funds held. Net income, if any, is available for transfer to the Law Foundation of Ontario (“LFO”). To date, administrative expenses have exceeded income and no transfers to the LFO have been made
More from the 2013 Financial Statements regarding Unclaimed Trust Funds…
10. Unclaimed Trust Funds (Page 22)
Section 59.6 of the Law Society Act permits a member who has held money in trust for, or on account of, a person for a period of at least two years, to apply in accordance with the by-laws for permission to pay the money to the Society. Money paid to the Society is held in trust in perpetuity for the purpose of satisfying the claims of the persons who are entitled to the capital amount. Subject to certain provisions in the Act enabling the Society to recover its expenses associated with maintaining these funds, net income from the money held in trust shall be paid to the Law Foundation of Ontario. Unclaimed money held in trust
amounts to $3,195,000 (2012 – $2,747,000).
Source: Law Society of Ontario 2013 Financials here