Unclaimed Property

Holding property (both intangible and tangible) legally belonging to another is usually considered unclaimed or escheat property and must be transferred to a state within a specific time period. Examples of unclaimed property may include:

	•	Uncashed Employee and Vendor Checks

	•	Customer Credit Balances and Overpayments

	•	Gift Certificates Not Used

	•	Other Unclaimed Property

Failure to submit this property within a state’s mandated time period can result in substantial penalties and interest. Generally, since states often do not have a statute of limitation with respect to escheat property, they often look back ten years or more to claim improperly held property.

The type and holding periods of escheatable property often varies by state. Which state has the right to the property is sometimes unclear, and the multitude of reporting rules are complicated. Businesses that are not aware of the intricacies of escheat laws can find themselves faced with significant exposure. Furthermore, states have recently become more aggressive in identifying and collecting unclaimed property held by businesses, from increasing their own audit staff to contracting with third parties to perform audits on their behalf. It is imperative that businesses understand unclaimed property laws and identify states to which unclaimed property may exist.

Unclaimed Property Services offered by Schenck Business Solutions include:

• Reviewing current policies and offering recommendations
• Identifying escheatable property
• Determining reporting jurisdictions
• Helping with filing reports
• Identifying and assisting with participation in amnesty programs
• Assisting with unclaimed property audits