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Unclaimed Property
Unclaimed Property
History 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
What Is Unclaimed Property?
• MONEY • Financial Instruments• Financial Obligations• Safe Deposit Boxes are the only tangible items
covered by the statutes.
Why 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
Claiming PropertyGovernmental Entities
• Search our online database at www.showmemoney.com
• Register names using our online email notification system at www.showmemoney.com
• Check all names and derivatives of names commonly used by your entity.
Claiming Property
• Public Relations Issue– Does not look good if the media states that your
district is not cashing its checks.
Claiming PropertyPersonal
• Search names for yourself, family, friends neighbors at www.showmemoney.com
• Register names using our online email notification system at www.showmemoney.com
• Forward located accounts via email to people that you find accounts for using our unclaimed property notification function.
Unclaimed Property Overview:
• Returned a record 120,632 accounts totaling $36.3 million in FY11.
• Largest amount returned was $6.1 million to one individual.
• Over $85 million was reported in FY12.• Currently hold over $700 million in unclaimed
assets in more than 4.5 million owner accounts. • The average return is $300.• 1 in 10 Missourians has Unclaimed Property.
Major Reporting Requirements of the Law
• Identify Unclaimed Property• Perform Due Diligence prior to reporting the
property• Report and Remit Unclaimed Property
Where to find Unclaimed Property
• Outstanding check listings• Dormant account listings• Unidentified remittances
Abandonment 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)
Dormancy Periods
• 5 years most all intangible property• 3 years – state agencies, political subdivision,
local government entities• 7 years - money orders• 15 years - travelers checks• 1 year - court bonds• 2 years - dissolution of business
Cross Referencing Accounts
• Accounts are only reportable if the account has no activity and has lost contact.
• Cross Reference Accounts. For Example:If a payroll check has gone uncashed
check to see if the payee is still employed or is receiving retirement benefits. Use that
address to reestablish contact.
Due Diligence - What is it?
• An attempt to locate the rightful owner of the property prior to reporting the property to the state
Due 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”
Due 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
Reporting Unclaimed Property
• Where do you send the report?– State of rightful owner’s last known address– If no address exists on record, State of Holder’s
Corporate Domicile– Reciprocity reporting
Reporting Dates
• School Districts– Report due November 1, using a June 30 cut off
Do’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• New in 2012 – Online holder data entry
function
Methods to Verify the owner is “Lost”
• Customer service telephone calls• Review telephone directories for address
information• Perform inquiries via credit rating services and
the internet
ITEMS TO DOUBLE CHECK
• Be as complete as possible when filling out the report form
• Make sure report is complete• Perform Due Diligence• Ensure report format matches state’s
requirements• Report & Remit by the report due date
Missouri’s Unclaimed Property Holder Report
• Available via the internet in both forms: www.showmemoney.com– Manual– New in 2012 – Online holder data entry function
• Electronic Reporting is requested if reporting over 50 owners
• Electronic Reporting is required if granted a filing extension
Unclaimed Property Holder Input System:
Registration Page
Adding New Report
Adding Properties to a Report
Adding Owner Information
Submitting Report
Finalizing Report
NAUPA
• National Association of Unclaimed Property Administrators
• Promote the exchange of property and information between states
• Promote a better overall understanding of Unclaimed Property
• web site - www.unclaimed.org
CONTACT INFORMATION
Missouri State Treasurer Clint ZweifelDivision of Unclaimed Property Post Office Box 1272 Jefferson City, MO 65102-1272 Site: www.showmemoney.com Email: [email protected]
UNCLAIMED PROPERTY
TIPS
Look for property by:◦ District name◦ Buildings’ names◦ PTO names◦ Booster names◦ How are checks written to you?
CLAIMING UNCLAIMED PROPERTY
Consider all your accounts:◦ General Operating/Accounts Payable◦ Payroll◦ Bond issue accounts◦ Flexible Spending Accounts – checks written by
Provider◦ Self-Insured Insurance Accounts – checks written
by Provider
School District’s Unclaimed Property
Review your outstanding check lists frequently◦ Quarterly◦ Annually as part of YE Procedures◦ Allows you to reissue checks which eliminates
reporting
Avoiding Unclaimed Property
Other Benefits:◦ No outstanding payroll-related checks
403b/457 checks Garnishment checks Retirement Taxes
◦ Easier to contact vendor◦ Have physical paperwork
Avoiding Unclaimed Property
Other Benefits◦ Maybe not really unclaimed property – item/service
was cancelled and vendor told teacher they “would not cash the check.”
Avoiding Unclaimed Property
Do NOT re-use vendor numbers! Consider checks without addresses
◦ Athletic Officials◦ Presenters
Unclaimed Property Tips
Sources to find contact information◦ Former Employees
Human Resources Separate database from vendor file
Retired Educators Association PSRS/PEERS Paying for insurance
◦ Building that originated the check
Unclaimed Property Resources
How much is the check? What was the check for? When was the check issued? Why didn’t you contact me before?
◦ “It’s your fault I didn’t cash my check.” Same names occur.
What to Expect
That is when◦ I moved◦ I divorced◦ I had a death in the family◦ My daughter was married◦ Some other life event
You will also hear . . .
Your contact name, phone number & address◦ I received a letter without a return address
Check Number
Date of Check
Amount of the Check
Invoice Number
What Information to Include?
Options to:◦ Reissue Check◦ Donate the Check Amount◦ Change Address or Last Name
Documentation required if name change or death
PROVIDE DUE DATE
What Information to Include?
November 1- the deadline to submit to the State
Send letters in August
Sept / Oct to reissue checks
Oct to enter unclaimed property holders in the State’s system and submit by Nov. 1
Timing
QUESTIONS?
