Unclaimed property laws continue to be one of the most fluid concerns for issuers. The ever-changing efforts by states to streamline escheatment, combined with the inherent complexity of 50 separate states doing things on their own, results in a laundry list of rule changes. Here's a brief rundown on changes from the back end of 2017. If you'd like to know more about the specifics of unclaimed property laws that affect your company, reach out to our Unclaimed Property Consulting group.
Texas
- Owners of mutual fund shares may now designate a representative other than themselves for the purpose of receiving a due diligence letter
Tennessee
- Most dormancy periods reduced to three years
- Requires active outreach when a holder dies
- Adds ability to reach out to individuals by electronic means in addition to standard mail
Utah
- Most dormancy periods reduced to three years
- Adds ability to reach out to individuals by electronic means in addition to standard mail
Illinois
- Splits dormancy periods to either three or five years depending on the nature of the last shareholder contact (three years if undelivered mail, five years if active shareholder outreach)
- Adds ability to reach out to individuals by electronic means in addition to standard mail
- Requires 10-year record retention for escheated property
- Due diligence letters must be sent via First Class Mail; securities with a value of more than $1,000 require a second notice be sent via certified mail
North Carolina
- Due diligence threshold reduced to $25
Delaware
- Due diligence must be sent regardless of value; must be sent via First Class if greater than $50
South Dakota
- All securities are required to be liquidated within 90 days of escheatment
Arkansas
- Extended dormancy period from five years to seven years
There's a lot going on in the statehouses, and the list above should serve as a reminder that it's not going to slow down any time soon. Quite simply, ignoring unclaimed property compliance is no longer an option. The states are casting a wider net in their search for more funds, so you should be prepared for more and more states moving to a three-year dormancy period and more aggressive pursuit of unclaimed funds. Learn more on the Georgeson website.