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Common Terms
- Unclaimed Property - Liabilities retained by an entity, but owed to another - interchangeable with abandoned property.
- Dormancy Period - Period of time property remains inactive before it is presumed abandoned.
- Holder - Entity in possession of property.
- Owner - Individual or entity entitled to the property.
- Due Diligence - Holder must attempt to contact owner prior to remitting property to state.
Identifying Property
- Property type is diverse and sometimes difficult to identify.
- Some property is the same for all industries (i.e., payroll checks, vendor checks and accounts receivable credit balances).
- Some property differs by industry:
- Retail - gift certificates, merchandise credits and layaways
- Publishing - royalties
- Utilities - deposits and refunds
- Banks - money orders, travelers checks, CD’s, deposits
- Gift Certificates: some states allow for the reduction off the face value of gift certificates. Usually a state will allow the reduction based on the gross margin percentage, while some states statutorily mandate a specific percentage.
Types of Unclaimed Property
- Securities Related Property: Equity Securities and Debt Obligations
- General Ledger Property: Salaries, Bonuses, Commissions, Gift Certificates. (See Chart for detailed information)
- Acquisitions and Privatization: Unless specifically provided in contract, acquiring company will assume all unclaimed property liabilities.
- Personal Property: Property in safe deposit boxes that remains unclaimed is required to be remitted to the state.
- Real Property: Land.
Property Types by Industry
Common types of unclaimed property by Industry
- Banks and Financial Institutions
- Savings Accounts
- Money Orders
- Cashiers Checks
- Safe Deposit Boxes
- Retirement Accounts
- Unidentified Deposits
- Credit Balances arising from:
- Liquidated mortgages
- Consumer Loans
- Consumer Credit Accounts
- Healthcare and Hospitals
- Patient Credit Balances Due to:
- Patient
- Primary Insurer
- Secondary Insurer
- Unidentified Payments from:
- Patients
- Insurance Companies
- Personal Property of Patient
- Retail Businesses
- Gift Certificates / Gift Cards
- Credit Memos
- Layaways
- Commissions
- Merchandise Credits
- Expense Checks
- Seasonal Payroll Checks
- Outstanding Vendor Checks
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