The ABC’s of Unclaimed Property
All States have intangible unclaimed property reporting laws along with DC, Guam, Puerto Rico and the Virgin Islands. Canada also has robust unclaimed property reporting requirements. But, in this case, we’re
talking only of the U S. reporting requirements and not Canada.
All States pursue unclaimed property as a source of State revenue and so the true Owner of this lost property only has one place to look to reclaim Ownership.
Each State has their own unique laws that dictates how the property is managed until reported. These laws are basically the same amongst the States. But some States have laws that only benefit them. However, the reporting requirements are basically the same in all the States, yet
slightly different.
The statutorily set dormancy period may be 1 through 5 years in most cases depending on the property type, with Traveler’s Checks having a 15 year holding/dormancy period.
The main purpose of these State laws are to protect the property until the rightful Owner can be found. Until the Owner can be found, the States may use this property for “public good” such as road maintenance, library construction/remodeling, school funding, etc.
Property that remains unclaimed by the rightful Owner must be turned over to the appropriate State after it reaches its dormancy period. But the rightful Owner may always lay claim to it. That State may be the
State where the Owner last resided or the Holder/company/entities State of Incorporation depending on whether the Owner’s last known address is unknown, or if the property is foreign.
As you can see, these laws and requirements can get complicated and confusing. For help with your unclaimed property reporting or any questions, please reach out to a professional at PEACC by calling
410.303.5510 or email us at info@peacc.com We’re here to help!
