§ 1038 Member Deposit Return Rules

This law says any money a person has saved with a home must be given back to them when they leave, but if they don’t ask for it in time, the money goes to a special fund.

Key Takeaways

•Money saved with a home must be returned when the person leaves.
•If the saved amount is $5,000 or less, they have 2 years to claim it; if more, they have 5 years.
•If they don’t claim it in time, the money goes to the Morale, Welfare, and Recreation Fund, and heirs can claim it under the same time limits after the member’s death.

Example

Jane lives in a state home and has $4,000 saved there. She leaves the home on June 1, 2023 and never asks for her money.

Because her saved amount is $5,000 or less, she had only two years (until June 1, 2025) to ask for it. Since she didn’t, the $4,000 is sent to the Morale, Welfare, and Recreation Fund.

How to Calculate

If amount ≤ $5,000 → deadline = discharge date + 2 years; If amount > $5,000 → deadline = discharge date + 5 years.

Look at how much money was deposited.
Compare the amount to $5,000.
If the amount is $5,000 or less, add 2 years to the discharge date; if more, add 5 years.
Check whether the member (or their heirs after death) asked for the money before that deadline.
If they asked in time, they get the money; if not, the money goes to the Morale, Welfare, and Recreation Fund.

Tom has $7,500 saved with the home. He leaves on March 15, 2022.

Result: Because $7,500 > $5,000, Tom has 5 years to claim it (deadline = March 15, 2027). If Tom asks for his money on January 1, 2026, he gets it back. If he waits until April 1, 2027, the money goes to the fund.

All money deposited with a home for a member shall be paid to the member, on demand, upon their discharge or voluntary departure from the home. If the money is not demanded at the time of discharge or departure or within a period of two years thereafter, if the amount does not exceed five thousand dollars ($5,000), or within a period of five years thereafter, if the amount exceeds five thousand dollars ($5,000) either by the member, or, in the event of the member’s death after discharge or departure, by the member’s heirs, devisees, legatees, or qualified executor or administrator of their estate, the money shall be paid to the Morale, Welfare, and Recreation Fund. (Amended by Stats. 2024, Ch. 129, Sec. 99. (SB 1097) Effective January 1, 2025.)

This law says any money a person has saved with a home must be given back to them when they leave, but if they don’t ask for it in time, the money goes to a special fund.

Key Takeaways

•Money saved with a home must be returned when the person leaves.
•If the saved amount is $5,000 or less, they have 2 years to claim it; if more, they have 5 years.
•If they don’t claim it in time, the money goes to the Morale, Welfare, and Recreation Fund, and heirs can claim it under the same time limits after the member’s death.

Example

Jane lives in a state home and has $4,000 saved there. She leaves the home on June 1, 2023 and never asks for her money.

Because her saved amount is $5,000 or less, she had only two years (until June 1, 2025) to ask for it. Since she didn’t, the $4,000 is sent to the Morale, Welfare, and Recreation Fund.

How to Calculate

If amount ≤ $5,000 → deadline = discharge date + 2 years; If amount > $5,000 → deadline = discharge date + 5 years.

Look at how much money was deposited.
Compare the amount to $5,000.
If the amount is $5,000 or less, add 2 years to the discharge date; if more, add 5 years.
Check whether the member (or their heirs after death) asked for the money before that deadline.
If they asked in time, they get the money; if not, the money goes to the Morale, Welfare, and Recreation Fund.

Tom has $7,500 saved with the home. He leaves on March 15, 2022.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 1038 Member Deposit Return Rules

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References