Ontario is seeking budget input from Ontarians but there’s been no action so far on an old budget item now worth $2 Billion
There’s approximately $2 billion in Unclaimed Property that is sitting with various organizations across Ontario that needs to be returned to hard-working Ontarians. $2 Billion would also serve the Ontario budget in a big way now and in years to come.
Ontario is the largest jurisdiction in North America without an unclaimed property law to protect consumers. While Ontario was the first Canadian province to pass unclaimed property legislation in 1989 the statute was not proclaimed into force and the legislation was repealed 22 years later in 2011. The 2012 budget announced Ontario’s intention to try again and create an unclaimed property scheme that would mirror that of the US where legislation has been in force for over 50 years. And yet, there has been no follow-up from consultations that occurred in 2013. Why ?
We submitted an 8 page document advocating for the rights of Ontario residents for this legislation during consultations in 2013. We and jurisdictions around the world feel pretty passionately that Unclaimed Property is an important aspect of consumer protection that is missing in Ontario. The estimated $2 billion + in unclaimed/lost financial assets for Ontario comes in a variety of forms including unclaimed bank/trust/credit union accounts, insurance policies, share certificates, dividends, unclaimed wages, bonds, pensions and other property types including prepaid funeral deposits and utility deposits etc..
Unclaimed Ontario savings bonds alone total more than $65 Million.
The Law Society of Upper Canada (Ontario) has more than $3 Million in unclaimed trust accounts. No one knows what the total of Unclaimed accounts held by Ontario credit unions would total because for the last 20 years, Credit Unions have been waiting for further instructions. Legislation would ensure that any organization in Ontario holding unclaimed or lost deposits or financial assets would transfer them to the Province and a comprehensive database would be available for Ontarians to look for those assets while the Province or a related agency would proactively look for legal owners.
Despite the fact that no ones loses track of their assets on purpose and assets generally become lost as a result of a tragic event or forgetfulness, in Ontario there is no law that requires the holders of unclaimed financial assets to look for the asset owners. So no one including the Province is looking for you if your Great Aunt Martha purchased a life insurance policy for you or if your Grandma Shirley opened a credit union account for you when you were born. We would argue that`s not “very Canadian” .
Legislation would be a win/win for Ontario residents and the Province of Ontario as unclaimed financial assets are typically utilized by the government or jurisdiction that holds those accumulated assets until claimed. The USA has more than $58 Billion in Unclaimed financial assets being used in this way. Unclaimed assets are sadly becoming a larger part of the revenue for many states including most notably California and New York.
While facts are sparse given a lack of legislation across Canada (outside of Alberta and Quebec where legislation has been enacted), there has been an alarming increase in unclaimed financial assets in recent years. Given aging demographics and the digital world in which we live, that increase will probably rise significantly. So why is Canada and Ontario in particular so far behind other jurisdictions like the US, Australia, New Zealand, the UK etc?
More importantly, why is a cash strapped Ontario government not following up with Unclaimed Property legislation that they started re-discussing in 2012 ?
Does the government of Ontario really have too many other pressing priorities that might be as advantageous as Unclaimed Property Legislation both from a financial and consumer protection perspective ?
It’s time for Ontario to catch up and do what is right for Ontario taxpayers/residents and their the Provincial treasury. Have your say during budget consultations with Ontario by linking to the Province of Ontario here We have and we hope you will share this post with others if you agree with the need for Unclaimed Property Legislation in Ontario.