Unclaimed Property 101
What is unclaimed property?
- UP 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
- UP is NOT a tax
Unclaimed Property Terms & Definitions
Holder: The party who has the legal obligation to the owner of unclaimed property. Usually, the possessor or 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 Types of Unclaimed Property
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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