Safe deposit boxes inside a Swiss bank.
A safe deposit box, also referred to as a safety deposit box, is a small secured space in a larger vault inside of a bank or credit union branch. Think of these as a smaller version of a safe, which you can rent to store valuables and important documents. Escheatment is the transfer of unclaimed funds or property to a state government. It might seem impossible to misplace money or forget about a safe deposit box, but it happens to many of us. For instance, you may have opened an account designed for medium- to long-term saving, like certificates of deposit (or CDs), and then forgotten about it.
Safe deposit vault after the 2011 Joplin tornado.
A safe deposit box, also known as a safety deposit box, is an individually secured container, usually held within a larger safe or bank vault. Safe deposit boxes are generally located in banks, post offices or other institutions. Safe deposit boxes are used to store valuable possessions, such as gemstones, precious metals, currency, marketable securities, luxury goods, important documents (e.g. wills, property deeds, or birth certificates), or computer data, which need protection from theft, fire, flood, tampering, or other perils. In the United States, neither banks nor the FDIC insure the contents. An individual can purchase separate insurance for the safe deposit box in order to cover e.g. theft, fire, flooding or terrorist attacks.
Hotels, resorts, and cruise ships sometimes also offer safe deposit boxes or small safes to their patrons, for temporary use during their stay.[1] These facilities may be located behind the reception desk, or securely anchored within private guest rooms for privacy.
The contents of safe deposit boxes may be seized under the legal theory of abandoned property.[2] They also may be searched and seized by the order of a court through the issuance of search warrant.[3]
In the United States and elsewhere, safe deposit boxes are considered a 'legacy service'; many new bank branches do not bother to install any.[4] In the 20th century, bank branches were more prestigious; in the 21st century, space has grown more valuable with higher land values and rents, and many banks see the service as ancillary to their core business. Additionally, despite the public perception of safe deposit boxes as being extremely secure, there is little incentive for banks to actually ensure this is true; there are no federal laws in the US governing the matter or rules that would require compensation to customers if property stored there is stolen or destroyed.[4]
See also[edit]
Safe Deposit Boxes Near Me
References[edit]
- ^Payne, Kirby D. Safety Deposit Boxes and In-Room Safes. Hotel Online data base of News and Trends.
- ^Liz Pulliam Weston. 'Why treasures in safe deposit boxes get 'lost''. MSN Money.
- ^'Search Warrants'(PDF). American Safe Deposit.
- ^ abSafe Deposit Boxes Aren't Safe
Safe Deposit Boxes Near Me
Retrieved from 'https://en.wikipedia.org/w/index.php?title=Safe_deposit_box&oldid=1005872858'
Safe Deposit Boxes
A variety of factors determine who is entitled to inherit the contents of a deceased person’s safe deposit box. These factors may include: a. the name or names on the safe deposit box lease, b. whether property in the safe deposit box has a registered title, c. the provisions of the box holder’s will or living trust, and d. applicable state laws.Determining who has the right to inherit the contents of the decedent’s safe deposit box is a complex issue. State laws vary significantly regarding how title to a safe deposit box may be held and who has the right to the contents upon the death of a box lessee, especially in the case of joint holders or co-owners.
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If two or more lessees are named on the safe deposit box lease agreement, determining who has the right to inherit the contents of the box becomes more complicated. In some states, any property owned by a co-lessee that he places in the box will pass to his probate estate and not his surviving co-lessee. In other states, the surviving co-lessee owns the contents of the box regardless of the provisions of decedent’s will. In some states, it depends on whether the surviving lessee is a spouse or non-spouse. Whether the individuals leased the box as joint tenants also plays a role in determining ownership of the contents.The language of the safe deposit box lease agreement and any other paperwork the co-lessees signed regarding the right to the contents, as well as applicable state laws, will determine how the contents of the box will be distributed after the death of one of the lessees. In addition, it is important to distinguish between a joint holder of a safe deposit box and someone who is merely listed as authorized to access the box. If you are unsure how the contents of the decedent’s safe deposit box should be distributed, consult a probate lawyer.
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If you open a deceased person’s safe deposit box and find the decedent’s original will, state law may require you to file the will with the probate court of the county in which decedent was domiciled. If you discover the decedent’s original will in the safe deposit box, contact a probate lawyer immediately to ensure you comply with the law. If you are responsible for winding up the affairs of a deceased person, use a guide for executors from the list on our Books About Probate page.Note: Laws regarding estates, probate, and safe deposit boxes vary from state to state. There are exceptions to the general overview provided on this page. Consult a probate lawyer for specific information about how to access, inventory or distribute the contents of a deceased person’s safe deposit box.
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| If Safe Deposit Box Leased Solely in Decedent's Name |
If the safe deposit box was titled solely in the deceased person’s name and no other individuals were named on the box as co-holders, all property in the box that does not have a registered title will typically be part of the decedent’s probate estate and pass according to decedent’s will or, in the absence of a will, according to state intestate succession laws. Any property in the box which has a registered title will usually pass according to how the property is titled. See title to property.
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Certain types of property stored in a safe deposit box may have a registered title, such as stocks and other registered securities. Other types of property stored in a safe deposit box are unregistered, such as cash, jewelry, bearer bonds, gold or silver bars, coins, and artwork.
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If the safe deposit box is titled in the name of decedent’s living trust and all contents of the box were properly transferred to the living trust prior to his or her death, the contents of the box pass to named beneficiaries of the trust according to its terms. However, issues may arise if certain property in the safe deposit box was not titled in the name of the living trust or was not properly transferred to it. If trust property is commingled with non-trust property in the box, such non-trust property will usually pass to the decedent’s probate estate.
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For information about what to store in your safe deposit box, how to title your safe deposit box in the name of your living trust, and answers to related estate planning questions, see our Safe Deposit Box page.
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