Hawaii Abandoned Property Laws: Claims, Deadlines, and Penalties

Hawaii’s abandoned property laws, set out in Chapter 523A of the Hawaii Revised Statutes, govern what happens when someone loses contact with a bank, employer, insurer, or other entity holding their money or assets. After a dormancy period — usually five years — the holder must turn the property over to the state, which keeps it in trust for the rightful owner. Owners and heirs can reclaim it at no charge, but small amounts under $100 disappear permanently after ten years, and businesses that fail to report face steep penalties.

When Property Is Presumed Abandoned

Hawaii presumes property abandoned once the owner has had no contact with the holder for a set dormancy period. The default is five years, but timelines vary by property type:¹

Bank accounts (demand, savings, or time deposits): five years after maturity or the owner’s last indication of interest, whichever comes first.
Stocks and other equity interests: five years after the most recent unclaimed dividend or distribution, or after a second mailed statement comes back undeliverable.
Life insurance and annuity proceeds: five years after the obligation to pay arose, or three years after the insured reached the limiting age under the mortality table if death is the trigger.
Gift certificates: five years after December 31 of the year the certificate was sold.
Wages and personal service compensation: one year after payable.
Utility deposits and refunds: one year after payable.
Traveler’s checks: fifteen years after issuance.
Money orders: seven years after issuance.
All other property: five years after the owner’s right to demand it arises.

The one-year window for wages and utility refunds catches small businesses off guard. An employer sitting on a final paycheck for a former employee who moved away has just twelve months before the reporting obligation kicks in.

How to Claim Property the State Is Holding

The Department of Budget and Finance runs Hawaii’s Unclaimed Property Program, which holds dormant bank accounts, uncashed checks, insurance proceeds, stock holdings, safe deposit box contents, and similar assets in trust for their owners.² The state returns property to rightful owners at no charge.

Start with a name search on the state’s database at unclaimedproperty.ehawaii.gov, or call the Unclaimed Property office directly.³ If property comes up in your name, file a Claim for Return of Property Presumed Abandoned along with supporting documentation.

You will need a current government-issued photo ID and proof of ownership tying you to the property — a bank statement, payroll record, tax return, or utility bill will usually do. A few extra rules apply:⁴

Claims valued at $50 or more require notarized signatures.
Claims for stock or mutual fund shares require IRS Form W-9, or W-8 BEN for non-U.S. citizens living abroad.
Safe deposit box claims require a receipt or letter from the financial institution regarding any outstanding fees.

The Department reviews each claim and will follow up if paperwork is missing. Getting the documentation right the first time is the single biggest factor in how quickly you get paid.

Claiming Property for Someone Who Has Died

Heirs can recover unclaimed property belonging to a deceased owner, but the documentation runs deeper. Along with the claim form and your own photo ID, you must provide the deceased owner’s death certificate and proof of your relationship, such as birth or marriage certificates.⁴

If the deceased owner had a trust or went through probate, submit those documents showing your authority to act for the estate. If there was no trust or probate and the gross value of the Hawaii estate does not exceed $100,000, you can instead submit a signed and notarized Affidavit for Collection of Personal Property of the Decedent along with an original certified death certificate.⁴ One detail that trips people up: a Power of Attorney does not authorize anyone to file for a deceased person, because a POA terminates at death.

Deadlines That Can Wipe Out a Claim

For most unclaimed property worth $100 or more, Hawaii sets no deadline to file a claim. Smaller amounts are different. Claims for funds totaling less than $100 in the unclaimed property trust fund must be filed within ten years of the date the funds were deposited. After that, the money permanently escheats to the state general fund and cannot be recovered.⁵

The rule was enacted through Act 184 in 2014. For funds deposited on or before June 30, 2014, the ten-year clock started on July 1, 2014.⁵ A forgotten utility deposit or stale paycheck can vanish for good if you wait too long, so search sooner rather than later.

Watch Out for Finder and Locator Fees

Companies sometimes contact people to offer help recovering unclaimed property for a fee. Hawaii caps those arrangements at 25% of the property’s total value. Any agreement charging more is unenforceable, and either you or the state administrator can go to court to reduce the fee to 25% or less. The court may award attorney’s fees to an owner who wins that challenge.⁶

The same 25% cap applies to attorney agreements for filing a claim on identified property. An attorney can charge more only if the case goes to circuit court under section 523A-16 and the court approves the higher fee.⁶ Since the state returns property at no charge, most claims can be filed without paying anyone.

What Businesses Must Do

Any entity holding someone else’s property is a “holder” under Hawaii law — banks, insurers, employers, utility companies, and government agencies included. Holders follow a two-step yearly cycle: attempt to find the owner, then file a report with the state.

Due Diligence

The annual cycle starts May 1, six months before the November 1 reporting deadline. Holders must send written notice to each apparent owner at their last known address, informing them that the property will be turned over to the state if unclaimed.⁷ Sending to obviously outdated addresses without checking available records does not satisfy the requirement.

The Annual Report

Holders submit an annual report and remittance to the Director of Finance by November 1. It covers property that became abandoned between July 1 of the prior year and June 30 of the current year, except for life insurance companies, which report on a calendar-year basis.⁷

Each report must include the owner’s name, last known address, Social Security or taxpayer ID, and a description of the property. Reports use the NAUPA standard electronic file format, and the holder submits a notarized cover sheet certifying that due diligence notices were sent.⁷ Filing a “zero report” in years with nothing to report is good practice; filing nothing at all can attract audit scrutiny.

Penalties for Non-Compliance

Section 523A-24 sets a tiered penalty structure that escalates with intent:⁸

Standard non-compliance: a holder who fails to report or deliver property on time faces interest plus a civil penalty of $200 per day, capped at $5,000.
Willful non-compliance: intentional failure raises the penalty to $1,000 per day, capped at $25,000, plus 25% of the value of the unreported property.
Fraudulent reporting: a false report triggers the same $1,000 per day and $25,000 cap, plus the 25% surcharge.

Interest runs at two percentage points above the annual discount rate on the most recent 52-week U.S. Treasury bill issue, calculated from the date the property should have been delivered. The administrator can waive interest and penalties for good cause, and must waive penalties entirely if the holder acted in good faith and without negligence.⁸

The gap between missing a deadline and willfully keeping the funds is enormous: $200 a day on one side, $25,000 in flat penalties plus a quarter of the property’s value on the other. Staying on the safe side means keeping records, filing on time, and completing due diligence even in years with nothing to report.

If Your Claim Is Denied

If the Department denies your claim or fails to act on it within 120 days, you can file suit in circuit court to establish your right to the property. You must name the administrator as the defendant, and if you prevail the court may award reasonable attorney’s fees.⁹

Most claim disputes come down to ambiguous documentation or competing claimants. Assembling thorough proof of ownership before filing — original account statements, tax records, or probate documents — is the surest way to avoid a court fight in the first place.

1
Justia. Hawaii Revised Statutes 523A-3 – Presumptions of Abandonment
2
Department of Budget and Finance. Unclaimed Property Program
3
Department of Budget and Finance. Owner Information
4
State of Hawaii Department of Budget and Finance. Deceased Owner Claim Instructions
5
Justia. Hawaii Revised Statutes 523A-19 – Periods of Limitation
6
Justia. Hawaii Revised Statutes 523A-25 – Agreement to Locate Property
7
State of Hawaii Department of Budget and Finance. Guidelines for Reporting and Remitting Unclaimed Property
8
FindLaw. Hawaii Revised Statutes 523A-24 – Interest and Penalties
9
Justia. Hawaii Revised Statutes 523A-16 – Action to Establish Claim