The Basics of unclaimed property
What is Unclaimed Property?
- Unclaimed Property is defined as a fixed and certain interest in (generally) intangible property that is held, issued, or owed in the course of a holder’s business that has gone unclaimed for a specific period of time by the rightful owner. Also applies to safe deposit boxes.
- At its most basic level, unclaimed property laws are intended to be consumer protection statutes to reunite owners with their property.
- States take custody of such property for the benefit of the “lost” owners, who may claim the property from the state at any time.
- All industries and companies generate items that a can become unclaimed property if they remain unclaimed.
- Unclaimed Property is NOT a tax
Common Unclaimed Property Terms
Holder | Company | Business
The party who has the legal obligation to the owner of unclaimed property. Usually, the possessor of the unclaimed property.
Owner
Person or entity entitled to the property.
Owner Generated Contact
Activity on an account initiated by the owner.
Date of Last Contact | Last Activity Date
The most recent date that the owner and the holder of the property made "active" contact with each other.
Dormancy Period
Specified period of time in which the property owner does not take action on his or her property (varies by state and by property type).
Dormancy Trigger
The event that triggers the start or restart of the dormancy period.
Due Diligence
The level of effort required to locate the owner prior to reporting and remitting the property to the state.
Negative or Zero Reports
A report to be submitted notifying the state that no property is reportable.
Common Unclaimed Property Types
General Ledger
- Accounts Payable
- Accounts Receivable
- Credit Balances
- Escrow Accounts
- Expense Checks
- Funds from Dissolution-Liquidation
- Gift Cards
- Investment Accounts
- Payroll & Commissions
- Refunds-Rebates
- Vendor Checks
Banks & Financial Institutions
- Certificate of Deposit
- Checking Accounts
- Educational & Health Savings Accounts
- Escrow Accounts
- IRA’s
- Loan Overpayments
- Money Orders
- Official Checks
- Prepaid Gift Cards
- Savings Accounts
- Safe Deposit Contents
Securities & Investments
- Bond Shares
- Credit Balances
- Dividends
- Investment Accounts
- Mutual Funds
- Stock Shares
- Redemption Checks
- Commission Checks
Insurance
- Annuities
- Endowments
- Matured Policies
- Policy Proceeds Due to Beneficiaries
- Premium Refunds
- Retained Asset Accounts
- Uncashed Checks
- Individual or Group Policy Benefits
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