Federal lawmakers target states’ use of unclaimed property after California investigation

A CBS News California investigation has revealed that states, including California, are profiting from unclaimed property, such as uncashed checks and old bank accounts, which collectively amount to tens of billions of dollars. California alone holds over $15 billion in unclaimed assets, using them for general operations while returning only a small percentage to rightful owners. This practice has caught the attention of federal lawmakers, prompting Democratic Rep. Sam Liccardo and Republican Rep. Mike Lawler to propose the Safeguarding Americans’ Fairly Earned Retirement (SAFER) Act. This bipartisan bill aims to restrict states from taking custody of financial assets unless the owner is confirmed deceased or, for retirement accounts, after thorough checks. The legislation seeks to ensure that individuals, not states, benefit from the growth of their investments. The current system, critics argue, lacks accountability and deprives people of the potential appreciation of their assets. QUESTION: How might the proposed SAFER Act change the way individuals manage their long-term investments?