The Nevada Treasurer’s Office has issued a notice that the new dormancy standards set forth in Assembly Bill 55 will apply to the 2023 reporting cycle, even though the Nevada unclaimed property law’s effective date is July 1, 2023. This has created several implications for holders of unclaimed property in Nevada, including the need to retroactively apply the new standards to categories of property that have already been analyzed and segregated for 2023 due diligence and reporting purposes.
To help companies better understand the changes to Nevada’s unclaimed property law, we have put together a set of questions and answers that address the key issues. The questions and answers are as follows:
- What are the key changes to Nevada’s unclaimed property law?
- When do the new changes go into effect?
- What are the implications of the new changes for holders of unclaimed property in Nevada?
- What can holders do to comply with the new changes?
Question: What are the key changes to Nevada’s unclaimed property law?
Answer: The key changes to Nevada’s unclaimed property law include:
- The dormancy period for securities and retirement accounts has been shortened.
- A new “knowledge of death” dormancy trigger has been created for certain property types.
- New certified mail due diligence procedures must be implemented for certain items of property.
Question: When do the new Nevada unclaimed property changes go into effect?
Answer: The new changes go into effect on July 1, 2023. However, the Nevada Treasurer’s Office has interpreted the law to mean that the new dormancy standards apply to the 2023 reporting cycle, which means that holders must retroactively apply the new standards to categories of property that have already been analyzed and segregated for 2023 due diligence and reporting purposes.
Question: What are the implications of the Nevada unclaimed property changes for holders of unclaimed property in Nevada?
Answer: The new changes have several implications for holders of unclaimed property in Nevada, including:
- Holders must reevaluate the status of all Nevada property in their possession that was previously deemed dormant under the old law.
- Holders must implement new certified mail due diligence procedures for certain items of property.
- Holders may be subject to interest and penalties for non-compliance with the new law.
Question: What can holders do to comply with the new Nevada unclaimed property changes?
Answer: Holders can comply with the new changes by:
- Carefully reviewing the Nevada Treasurer’s Office’s notice.
- Requesting an extension if they are unable to comply with the new law by the October 31, 2023 deadline.
- Consulting with legal counsel to understand their rights and obligations under the new law.
The team of unclaimed property specialists at UPCR have put together these questions and answers because we believe that it is important for companies to be aware of the changes to Nevada‘s unclaimed property law and to understand how they will impact their compliance obligations. We hope that this information is helpful. If you have any questions or if we can help with your unclaimed property compliance needs, schedule a no-cost consultation today.