Unclaimed Property Overview Returned a record 42 million representing 138907 accounts in FY16 Nearly 100 million was reported in FY16 Currently hold over 942 million in unclaimed assets in more than 48 million owner accounts ID: 803512
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Slide1
Tracking and Reporting
Unclaimed Property
Slide2Unclaimed Property Overview:
Returned a record
$42
million representing
138,907
accounts in FY16.
Nearly
$100 million was reported in FY16.
Currently hold over $942 million in unclaimed assets in more than 4.8 million owner accounts.
The average return is $300.
1 in 10 Missourians has Unclaimed Property.
Slide3Interesting Unclaimed
Property Returns:
Largest amount ever returned was $6.1 million to one individual.
Returned a first edition Batman comic book with an estimated value of over $200,000.00
Returned money to
Axl
Rose from Guns N’ Roses. We have also returned money to Ozzie Smith, Dan
Dierdorf
, Albert
Pujols
and three past governors.
Average return by Proactive staff members is over $14,000.00.
Slide4History of Missouri’s
Unclaimed Property Law
48th State to pass the law
House Bill 1088 – 1984 – original legislation
House Bill 566 – 1993 - Moved to Treasurer’s Office
House Bill 1510 – July 2, 1998 – Abandonment period changed from 7 years to 5 years
Senate Bill 1248 – 2002 – Merged Escheat fund into Abandoned Fund
House Bill 1075 – 2014 – Limited B2B exemption and dropped abandonment period for payroll to 3 years
Slide5Major Requirements of the Law
Identify Unclaimed Property
Perform Due Diligence prior to reporting the property
Report and Remit Unclaimed Property
Slide6Abandonment Rules
All intangible property that is held, issued or owing in the ordinary course of a holder’s business that has remained unclaimed by the owner for more than 5 years after it becomes payable or distributable is presumed abandoned. (3 years for governmental entities)
Slide7What Is Unclaimed Property?
MONEY
Financial Instruments
Financial Obligations
Safe Deposit Boxes are the only tangible items covered by the statutes.
Slide8WHEN IS PROPERTY CONSIDERED ABANDONED?
No Owner Activity
Lost Contact with the owner
Payable or distributable to owner
Slide9How Does Property Become Unclaimed?
Loss of communication with the owner
Oversight by the owner or holder
Errors
Change in name or address, marital status, employment
Slide10Where to find Unclaimed Property
Outstanding check listings
Court Bond listings
Unidentified remittances
Slide11Reporting Unclaimed Property
Where do you send the report?
Texas v New Jersey - 1965 Supreme Court
State of rightful owner’s last known address
If no address exists on record, State of Holder’s Corporate Domicile
Reciprocity reporting.
Slide12Why Report Abandoned Property?
It’s the Law
Primary Purpose is to Protect an Owner’s Assets
Held in perpetuity for claimants by the State of Missouri
Slide13Dormancy Periods
5 years for most intangible property
3 years – payroll, state agencies, political subdivision, local government entities
7 years - money orders
15 years - travelers checks
1 year - court bonds
2 years - dissolution of business
Slide14Reporting Dates
Life Insurance
Report due May 1, using a December 31 cut off
All Other Holders
Report due November 1, using a June 30 cut off
Slide15Due Diligence - What is it?
An attempt to locate the rightful owner of the property prior to reporting the property to the state
Slide16Due Diligence - What is required?
Mailing a letter to the last known address for property with a value over $50
Notice sent first class mail within twelve months prior to reporting
Envelope must be marked “Return Service Requested”
Slide17Due Diligence Requirements (continued)
Efforts must be “reasonable and necessary diligence as is consistent with good business practice”, allow time for owner to respond
Notices and letters sent in the ordinary course of business, first class and “Return Service Requested” regarding unclaimed property satisfy the requirements
Tip: Starting your due diligence early usually increases the probability that you will return more to the original owners and reduce the amount reported as unclaimed property.
Slide18Methods to Verify the owner is “Lost”
Customer service telephone calls
Review online telephone directories for address information
Perform inquiries via credit rating services and the internet
Slide19Do’s and Don'ts of Reporting Unclaimed Property
Include Owner Detail
Names and last known address of owners
Identifying information - social security number, date of birth, account number
Amounts due owner
Use
electronic reporting options
if reporting over 50 owners
Online holder data entry function
Slide20ITEMS TO DOUBLE CHECK
Be as complete as possible when filling out the report form
Make sure report is legible & complete
Perform Due Diligence
Ensure report format matches state’s requirements
Report & Remit by the report due date
Slide21Missouri’s Unclaimed Property
Holder Report
Available via the internet in both forms:
www.showmemoney.com
Manual
Diskette/Electronic Reporting
Online holder data entry function
Electronic Reporting is requested if reporting over 50 owners
Electronic Reporting is required if granted a filing extension
Slide22Unclaimed Property
Holder Input System:
Slide23Registration Page
Slide24Adding New Report
Slide25Adding Properties to a Report
Slide26Adding Owner Information
Slide27Submitting Report
Slide28Finalizing Report
Slide29Search www.showmemoney.com
Search for your name.
Search your maiden name and married name.
Search for friends and family members.
Register for email notification.
Forward located accounts to friends/family that you might discover.
Slide30Holders Can Have
Unclaimed Property Too!
Many businesses, municipalities, courts, and governmental agencies have unclaimed property.
Search
www.showmemoney.com
on a regular basis.
Check for all company names, subsidiary names, and company utilized commonly used abbreviations.
Slide31NAUPA
N
ational
A
ssociation of
U
nclaimed
P
roperty
A
dministrators
Promote the exchange of property and information between states
Promote a better overall understanding of Unclaimed Property
web site -
www.unclaimed.org
Slide32CONTACT INFORMATION
Missouri State Treasurer Clint Zweifel
Division of Unclaimed Property
Post Office Box 1272
Jefferson City, MO 65102-1272
Site:
www.showmemoney.com
Email:
scott.harper@treasurer.mo.gov