BUSINESS OFFICE                                                                                                               44-02-010

UNCLAIMED PROPERTY AT DEATH BY ESCHEAT

POLICY STATEMENT.

The New Jersey Division of Veterans Healthcare Services (DVHS) requires each of the New Jersey Veterans Memorial Homes (VMH) to develop and implement policies and procedures to dispose of funds, property or other unclaimed assets of residents who die intestate.

PURPOSE.

The New Jersey Department of Military and Veterans Affairs (DMAVA) and its New Jersey Veterans Memorial Homes (VMH) shall comply with Chapter 162 of Public Law 1989, amended by L.1995, Chapter 152, Section 5, and L. 2002, Chapter 35, Section 52, effective July 1, 2002.  In cases where funds, property or other assets are unclaimed at the time of the death of a resident, these laws shall determine the disposition of the deceased resident’s unclaimed property.
 
DEFINITIONS.

Intestate – means dying without a legal will; having made no legal will; or not disposed of by a legal will.

Escheat – means the power of a state to acquire title to property for which there is no owner. The most common reason that an escheat takes place is that an individual dies intestate, meaning without a valid will indicating who is to inherit his or her property, and without relatives who are legally entitled to inherit in the absence of a will.

PROCEDURE.

  1. The New Jersey Veterans Memorial Homes shall hold the personal property (with little or no intrinsic value) as well as the personal clothing of a resident who dies intestate for thirty (30) days from the date of death. The personal property or clothing may be disposed of following this thirty (30) day period.
  1. The VMH shall make initial inquires as to the existence of heirs; and shall make and document all diligent inquiries that have been attempted to contact any heirs or other living relatives. If after one year, no known heirs or relatives can be located, the facility will transfer any unclaimed assets from the resident’s fund to a posthumous account.  There it will remain during the second and third year of the required three year period.
  1. These funds, assets, etc., are to be held in trust by the facility and if, during this three (3) year period, someone comes forth to contact the facility concerning the unclaimed assets and has legal proof of right to ownership, or can prove that he/she is a rightful heir, an Estate Settlement will be initiated and the estate will be paid accordingly from the posthumous account.
  1. After a three (3) year period, if no one comes forth to claim legal right to ownership or proves to be a legal heir, such funds and assets, etc. will be transferred from the posthumous account to the Special Services Fund and become the property of the VMH to be used as deemed appropriate.
  1. Once the funds have been transferred to the Special Services Fund, after the three (3) year waiting period, no claim will be entertained from any heirs to the estate.

New Jersey Statutes – Title 38A Military and Veterans Law 38A:3-6.16 – Unclaimed Property.

38A:3-6.16 - "Monies, choses [sic] in action and effects deposited by a member in trust with the veterans’ facility and unclaimed at the death of the member, dying intestate, shall be deemed to be the property of the veterans’ facility.  Such property shall be held in trust for three (3) years following the death of the depositor, with power to invest the funds and to use the income for the benefit of the members as the Advisory Council of the veterans’ facility and The Adjutant General (TAG) may deem most advisable.

“Upon claim made within three (3) years following the death of the depositor and sustained by legal proof, the sufficiency of which shall be determined by the Advisory Council of the veterans’ facility and The Adjutant General (TAG), such property shall be paid over to the claimant entitled thereto upon acknowledging, executing and delivering, a proper release and discharge.

“Such property remaining unclaimed three (3) years after the death of its depositor shall be deemed to be the property of and the subject to the absolute control and disposal of the veterans’ facility, to be used for such purposes as the Advisory Council of the veterans’ facility and The Adjutant General (TAG) may deem most advisable."

 

Revised:   June 2011

 

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