Unclaimed property—often referred to as escheatment—is a concept that has existed for centuries, yet it remains a complex regulatory challenge for many modern businesses. While the origins of these laws date back to English Common Law, the way companies manage dormant assets today requires a sophisticated understanding of state-specific statutes and reporting deadlines.
The Evolution of Escheatment
In historical English Common Law, escheat occurred when property lacked a natural heir. In these instances, the property “escheated” to the Lord of the Manor, meaning the original owner’s lineage lost all rights to the assets indefinitely.
Today, the landscape has shifted significantly:
From Ownership to Custodianship: Unlike the Lords of old, modern State Unclaimed Property Offices act as custodians. Their primary goal is to reunite the rightful owners or heirs with their property rather than claiming permanent ownership
From Tangible to Intangible: While ancient escheatment dealt with land and livestock, modern unclaimed property involves intangible assets like uncashed checks, dormant bank accounts, credit balances, and securities.
Critical Filing Deadlines
Staying ahead of the compliance calendar is essential to avoid interest and penalties. While deadlines can vary by state, the industry generally follows these milestones:
- Corporations and Financial Institutions: Most are required to submit reports and remittance by October 31 annually.
- Insurance Companies: Reporting for the insurance sector is typically due by April 30 annually.
For additional information and specifics on the upcoming year’s unclaimed property issues, please contact a professional at PEACC by calling 410.303.5510 or email us at info@peacc.com
