Every U.S. state, including D.C. and several territories, mandates intangible unclaimed property reporting laws. States pursue these assets as revenue, meaning owners have a single centralized location to search for lost property.
Key Regulations
- Unique Intangible Unclaimed Property Reporting Laws: Each state dictates how property is managed before reporting.
- Dormancy Periods: Most property types have a 1–5 year holding period, though traveler’s checks require 15 years.
- Consumer Protection: Laws safeguard assets until the rightful owner is found.
- Public Benefit: States may fund infrastructure, libraries, or schools using these funds until they are claimed.
Reporting and Claims
Property must be escheated to the state once the dormancy period expires. Owners retain a permanent right to file a claim. The reporting destination is determined by the owner’s last known address; if that address is unknown or foreign, the property goes to the holder’s state of incorporation.
Holder Responsibilities: Due Diligence
Before a company can turn property over to the state (escheatment), they must attempt to contact the owner. This process is called statutory due diligence.
- Communication: Most states require a formal letter sent via first-class mail to the owner’s last known address.
- Timing: These letters are typically sent 60 to 120 days before the reporting deadline.
- Thresholds: Many states only require these letters if the property value exceeds a certain amount (e.g., $50 or $100), though some states like New York require notification regardless of the value.
- Electronic Options: Recent laws now allow (or even require) email due diligence if the owner has consented to electronic communication.
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!
