unclaimed property · comply with their unclaimed property law. 2012 national holder workshop...

Representing State Governments That Actively Find Owners

While Protecting Forgotten Funds Until Claimed

National Association of Unclaimed Property Administrators

UNCLAIMED PROPERTY

201

DORMANCY PERIODS

2012 National Holder Workshop


DEFINITIONS

• Dormancy Period:

The period of time during which an owner of

property does not take action on his property.

The dormancy period is determined by the type

of property and may vary from one to 15 years.

• Dormancy Date:

The most recent date that the owner and the

holder of the property made active contact with

each other.



PREVENTION

Actions that PREVENT abandonment:

• Account Activity such as a deposit or

withdrawal

• Address Change notification

• Phone Contact with record made

• Related Account Activity

• Electronic contact, on-line, ATM, etc.



PREVENTION

Actions that DO NOT prevent abandonment:

• Automatic Drafts or Deposits

• Posting of Interest

• Absence of Returned Mail

• Service Charges



DORMANCY TRIGGERS

Securities (95 Act)

• Dividend, stock split or other distribution

not claimed

• Returned mail (RPO) the second time

• Holder discontinued mailings, notifications

or communications to the apparent owner



DORMANCY TRIGGERS Banks & CDs

• CDs – Initial (or first) date of maturity;

unless consent to renew is in writing or

evidence by a memo on file with holder

• The 81 Act - Property isn’t abandoned if:

- Owner “owned other property” with

qualifying activity

- The financial organization communicates

with the owner about the inactive account

at the address of the active account



DORMANCY TRIGGERS

Tax Shelter Accounts

81 Act: “Intangible personal property held in

a fiduciary capacity”

• The time period it becomes payable or

distributable unless the owner:

- Increases or decreases the principal, or

- Accepts payment of principal or income, or

- Communicates concerning the property, or

- Indicates an interest in writing



DORMANCY TRIGGERS 95 Act: “Any property in an IRA, defined

benefit plan or…plan that is qualified for

tax deferral…”

• The time period after earliest of the date of

distribution, attempted distribution or death

• Date of the required distribution as stated in

the plan or trust agreement

• Date specified in US income tax laws where

distribution must begin in order to avoid a

tax penalty



RESOURCES

• Dormancy periods can be found on the

QRP @ www.unclaimed.org

To Find:

Reporting Resources Tab then;

QRP States Monitoring Services then;

Dormancy Period

• Report Year Conversion Tables

http://www.unclaimed.org/



QUESTIONS?




UNCLAIMED PROPERTY

201

DUE DILIGENCE



Due Diligence

• When certain conditions are met Holders

are required to provide unclaimed property

owners with notice and provide them with

an opportunity to prevent the property from

becoming abandoned.



QUESTIONS?




UNCLAIMED PROPERTY

201

VOLUNTARY COMPLIANCE

PROGRAMS



Voluntary Compliance Program Defined

• A program whereby holders can receive certain

benefits by proactively reporting and remitting

prior unclaimed property liabilities.

• Most states offer some form of a voluntary

compliance program to encourage holders to

comply with their unclaimed property law.



Types of Voluntary Compliance Programs

• Formal Programs

– Voluntary Disclosure Agreement (VDA)

– Compliance Disclosure Agreement (CDA)

• Informal Programs

– Vary among states



Formal Agreement General

Requirements/Terms

• Qualifications to Participate

– Holder is not currently under audit or notified of audit

by the state.

– Holder has no previous reports filed.

– Some states allow previous report filers to participate

on an individual basis.

• Disclosure of Holder Information

• Contractual Agreement

• Holder Provides Disclosure Plan



Formal Agreement General

Requirements/ Terms Cont’d

• Holder Performs Self-Audit

• Specified Look-Back Period

• Abatement of Penalties and/or Interest

• Holder Submits Unclaimed Property Report and

Remittance

• Property Not Accepted on Behalf of Other States

• Annually File UP Report

• States Reserve the Right to Audit



Informal Programs General Requirements

• Requirements Vary Among States

– First time filers not charged penalty/interest.

– Some states offer for previous filers.

– Holder should contact state for information to provide.

– Reporting period varies.



QUESTIONS?




Unclaimed Property 201

COMPLIANCE-RELATED

TRENDS IN UNCLAIMED

PROPERTY



Dormancy Reduction

• Over 20 amendments in last five years.

• Increased UP awareness among state

legislatures.



Uniformity/Standardization?

• Increased discussions in Holder

community and among UP administrators.

• No centralized law and there are a number

of federal and state statutes that affect UP.



More Rigid Enforcement?

• Increased number of states may elect to

enforce fee and penalty provisions.

• Specific industry-focused examinations.



Technology Will Result in Changes

• What constitutes customer contact?

• New categories of property.

• Increased UP compliance responsibility for

small businesses.



QUESTIONS?

unclaimed property · comply with their unclaimed property law. 2012 national holder workshop...

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