Who is required to report unclaimed property? Many entities are considered “holders” under unclaimed property laws and are required to report any dormant property they hold that belongs to someone else. Here’s a breakdown of the most common types of holders:
- Financial Institutions: This includes banks, credit unions, investment companies, trust companies, and more. They are responsible for reporting unclaimed funds in accounts, safe deposit boxes, and other financial instruments that haven’t shown activity for a set period (dormancy period).
- Business Associations: This category encompasses corporations, partnerships, LLCs, and other for-profit and non-profit entities. They may hold unclaimed property such as customer refunds, uncashed dividend checks, or loyalty program points with no activity for the dormancy period.
- Utilities: Public or private utility companies that provide services like electricity, water, gas, or telecommunications might hold unclaimed security deposits or customer refunds that haven’t been accessed for the dormancy period.
- Government Entities: State, local, and federal government agencies can also be holders. Examples include unclaimed tax refunds, payroll checks, or court-ordered distributions that haven’t been claimed within the dormancy period.
- Estates and Trusts: Executors or trustees may be responsible for reporting unclaimed property from estates or trusts, such as uncashed checks or unidentified beneficiaries’ shares that remain unclaimed for the dormancy period.
- Insurance Companies: This includes companies offering life insurance, property and casualty insurance, health insurance, etc. They are required to report unclaimed benefits or proceeds from policies, such as uncashed checks or lost policyholders.
- Retail Organizations: This includes stores, online retailers, and other businesses that sell goods and services directly to consumers. They may hold unclaimed property such as gift card balances, unclaimed merchandise credits, or customer refunds that haven’t been redeemed or claimed within the dormancy period.
It’s important to remember that this is not an exhaustive list, and specific requirements can vary by state. Many states have a threshold amount below which property need not be reported. Additionally, certain types of property, like gift certificates or wages, may be exempt from reporting requirements.
For further information on unclaimed property reporting in your specific state, you can refer to the following resources:
- National Association of Unclaimed Property Administrators (NAUPA): https://unclaimed.org/
- Unclaimed Property Division of your state’s Department of Revenue (search online using your state name + “unclaimed property”).