With all state jurisdictions having unclaimed property reporting laws & requirements and them being aggressively enforced through fines and interest penalties, you hear the question a lot, “What is unclaimed property?” Is it abandoned cars/vehicles? Abandoned land or livestock? What is it? Well, it can be, but in this case it is unclaimed intangible property (with the exception of Safe Deposit Box contents). Considering the unclaimed property world, most unclaimed property involves the following types of intangible properties (but these are just examples and not all inclusive):
– EXAMPLES of UNCLAIMED PROPERTY –
– Unclaimed Vendor/AP checks
– Unclaimed payroll checks or direct deposits gone wrong
– Customer overpayments
– Unapplied cash accounts
– Aged Accounts Receivable credit balances
– Most Refunds due
– Unredeemed gift card/certificate balances
– Unclaimed bank accounts (checking, savings, retirement, CD’s)
– Life insurance proceeds due
– Uncashed benefit checks
– Utility deposits
– Lost shareholders or uncashed dividend checks
– Safe deposit box contents
Again, the above list are just examples of unclaimed intangible property and not meant to be all inclusive. Most companies/Holders are going to want to a look at their Accounts Payable, Payroll and Accounts Receivable areas, depending on the type of holder they are (corporation, bank or financial institution, life or non-life insurance company, etc.)
To talk further about all the unclaimed property reporting requirements and what your obligations are, and how to navigate through them, please contact the professionals at PEACC for a no obligation consultation at 410.303.5510.
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VDA Delaware
Now that your fall unclaimed property reporting is complete, your PEACC Team of Advisors would like to announce Delaware is schedule to send out the next round of VDA invitations on November 15, 2024. The State last sent invitation letters out in February 2024.
If your organization receives a VDA (Voluntary Disclosure Agreement) invitation Letter from Delaware and fails to timely respond, you will become eligible for the dreaded, unclaimed property audit. Contact the professionals at PEACC to discuss your options, along with the process, at 410.303.5510.
https://lnkd.in/eTMSCMqp
VDA Invitation Dates – VDA Program – State of Delaware
vda.delaware.gov
IMPORTANT ANNOUNCEMENT From Delaware Administrator
IMPORTANT ANNOUNCEMENT From Delaware Administrator
RE: CHANGE TO DELAWARE UNCLAIMED PROPERTY SECURITIES CUSTODIAN & REPORTING
Effective immediately, Delaware has changed its custodian for the
reporting of securities to Wells Fargo Advisors.
Any holders reporting and remitting securities to Delaware should follow
the updated instructions that are available in the State’s Holder
Reporting Guide (page 40).
Slash Your Unclaimed Property Compliance Costs!
Slash Your Unclaimed Property Compliance Costs! PEACC offers a cost-effective solution for your unclaimed property needs.
Unclaimed Property Intangible Assets : A Money Treasure Trove Beyond Lost Cars or Stray Animals
Unclaimed Property: “unclaimed property,” state law defines it as intangible property– meaning it’s not a physical object you can hold.
WHAT IS THE PURPOSE OF THE UNCLAIMED PROPERTY LAW?
The purpose of unclaimed property laws is to protect the property rights of the lost/rightful owner and to ensure benefit to the public.
Unveiling the Benefits of a Voluntary Disclosure Agreement (VDA)
Main Benefits of a Self Unclaimed Property Audit or a Voluntary Disclosure Agreement (“VDA”)
What Constitutes Intangible Unclaimed Property Reportable Under the Law?
Have you ever forgotten about an old gift card or a check tucked away in a drawer? Businesses deal with similar situations all the time. Unclaimed property refers to intangible assets – things like checks, credits, or refunds – that haven’t seen activity from the rightful owner for a set period called the “dormancy period.” After this time, the property becomes dormant or unclaimed.
Examples of intangible unclaimed property include:
-Uncashed payroll or commission checks
-Uncashed accounts payable/vendor checks
-Accounts receivable credit balances
-Gift certificates/gift cards
-Customer merchandise credits, layaways, deposits, refunds or rebates
-Overpayments/unidentified remittances
-Suspense accounts -Unused/outstanding benefits (non-ERISA)
-Goods received but not invoiced
-Miscellaneous income/bad debt expense accounts
Dormancy periods typically range from 3 to 5 years, but this can vary depending on the type of property. For instance, some states might have shorter periods for perishable items like gift certificates.
There are some general ranges to keep in mind:
- Typical dormancy periods: Commonly range from 3 to 5 years for things like bank accounts, checks, and credit balances.
- Some exceptions: Certain property types might have longer or shorter dormancy periods.
Here are some resources that can help you find specific dormancy periods:
- National Association of Unclaimed Property Administrators (NAUPA): This site has links to each state’s unclaimed property website.
- Unclaimed.org: Unclaimed Property Law This website allows you to search for unclaimed property by state.
Also visit our About Us page for more information or call 410-303-5510.
By understanding and complying with unclaimed property laws, you can avoid potential headaches. Not only does it prevent legal issues, but it also helps reunite rightful owners with their forgotten assets.
Once you understand the property types, the dormancy periods, and the different laws of each state, leave the compliance and reporting work to us. You owe it to yourself and your company to contact PEACC to help alleviate all your unclaimed property compliance reporting headaches.
UNCLAIMED PROPERTY REPORTING OBLIGATIONS
Holders are also obligated to perform the required due diligence/search letter mailings as required in almost all states.
UNCLAIMED PROPERTY LAWS: WHAT ARE THEY ALL ABOUT?
Unclaimed property involves intangible property, normally cash, checks or securities. The only
tangible property involved would be safe deposit box contents that goes unclaimed if the
holder/bank may have lost contact with the owner. This would constitute unclaimed property
when the state dormancy/holding period has been met.