Unclaimed Property Program Holder Report Guide Report
Unclaimed Property ProgramHolder Report GuideReport Year 2020Minnesota Department of Commerce Unclaimed Property Program 85 7th Place East, Suite 280 Saint Paul,Minnesota 55101
Table of ContentsImportant Information for Report Year 2019 . 4What is Unclaimed Property and Who Needs to Report? . 4General Guidance on Interest-Bearing and Increment-Earning Property . 5Guidance on interest-bearing property . 5Guidance on other increment-earning property . 5Determine Property to be Reported . 6Businesses and Other Organizations: . 6One Year Dormancy Period . 6Three Year Dormancy Period . 6Five Year Dormancy Period . 6Life Insurance and Other Fraternal Organizations: . 7One Year Dormancy Period . 7Three Year Dormancy Period . 7Reporting Exemptions and Exceptions . 7Gift Cards and Gift Certificates . 7Cooperative Property . 7Negative Reporting . 7Attempt to Locate the Owners . 7Businesses and Other Organizations: . 8Life Insurance and Other Fraternal Organizations: . 8Prepare and Complete Report . 10HRS Pro (supported by Avenu Insights & Analytics) . 10Aggregate Reporting . 10Extension Requests . 10Reciprocal Reporting . 10Reporting Securities . 10Reporting Safe Deposit Box Contents . 11Submit Your Report and Remit Funds . 11Requests for Reimbursement . 12NAUPA Standard Property Codes with Dormancy Periods (In Years) . 14NAUPA Standard Relationship Codes . 15NAUPA Property and Ownership Codes . 18Holder Request for Reimbursement. 19Holder Request for Extension of Due Date . 20
Delivery Instructions – Wells Fargo Bank, N.A. . 21Checklist . 23Contact Us . 23Appendix . 24
Important Information for Report Year 2019 If property is interest-bearing, holders must report the property to the state as interest bearing, includingthe rate of interest earned at the time the property is received by the DepartmentIf property is increment-earning, holders must report the increments with sufficient detail to identify theprincipal property, the owner of the principal property, and any other information needed to connect theowner to the increment(s)Report submissions via our online holder report submission portal, or submissions via CD, are requiredReport submissions via paper forms or diskette will be rejectedSafe deposit box contents must be mailed in a separate parcel from any report components (remittancechecks, report-related documentation, report media, etc.)Holders may request an extension by completing the Holder Request for Extension of Due DateHolders may request reimbursement for previously reported property by completing the Holder Requestfor ReimbursementHolders must contact the Unclaimed Property Program to report unclaimed property prior to the requireddate if the Holder has reason to believe the property will be reportable in the future no later than 30 daysprior to the reporting deadlineWhat is Unclaimed Property and Who Needs to Report?Parent organizations have a duty to ensure that unclaimed property held by their subsidiaries is reported.Principals have a duty to see that unclaimed property in the hands of their agents (including stock transfer,dividend, and payroll disbursing agents) is reported. Receivers and liquidating trustees have a duty to report forentities in receivership or liquidation.Common holders of reportable property include, but are not limited to: financial institutionsinsurance companiesoil and gas companieshospitalsclinicsstate and local government agenciesmanufacturersbrokersreal estate agentsretailersIf you are holding unclaimed property belonging to Minnesota residents, you must file a report with the MinnesotaUnclaimed Property Program, even if you are not registered or licensed to do business in Minnesota.Businesses and other organizations are required to report and remit unclaimed property by November 1st. LifeInsurance companies and other fraternal organizations are required to report and remit unclaimed property byOctober 1st.Unclaimed property refers to various types of intangible property that has been abandoned for a specified periodof time. Examples include, but are not limited to: savings and checking accountsuncashed checks
securitiesdividendsinsurance refunds and wagesThe only tangible property that is reported is the contents of safe deposit boxes; real estate and other tangibleproperty are NOT reportable to the State of Minnesota, but may be reported to local municipalities. According tothe Minnesota Uniform Disposition of Unclaimed Property Act, all intangible property and safe deposit boxes mustbe reported to the Minnesota Department of Commerce.Anyone who willfully fails to report is guilty of a misdemeanor. Anyone who refuses to pay or deliver abandonedproperty is guilty of a gross misdemeanor. Anyone failing to pay or deliver property by the reporting due date maybe charged interest at the rate of 12% per year on the value of the unclaimed property. In addition, the MinnesotaDepartment of Commerce has broader penalties that may apply.General Guidance on Interest-Bearing and Increment-EarningPropertyMinnesota’s Unclaimed Property Act was amended in 2019. Property owners are now entitled to interest andincrements on abandoned property. Pursuant to the updated Act, owners of non-money property “entitled toreceive from the commissioner income or gain realized or accrued on the property before the property is sold.”Minnesota Statutes § 345.451. Further, if the property was interest-bearing, owners are entitled to interest,which “begins to accrue when the property is delivered to the commissioner.” Id.Thus, Minnesota law requires all holder reports to include “a description of the property, including whether theproperty is interest-bearing, and, if so, the rate of interest.” Minnesota Statutes § 345.41. Holders must alsoreport increments (e.g., dividends, capital gains, etc.) earned on abandoned property in sufficient detail that theincrements can be properly attributed and paid to the owner, both at the time a claim is made and when futureincrements are reported.Guidance on interest-bearing propertyIf property is interest-bearing, holders must report the property to the state as interest bearing, including the rateof interest earned at the time the property is received by the Department.Whether property is interest-bearing depends on the terms and conditions agreed upon between the holder andowner. Interest-bearing property includes, but is not limited to: Checking accountsSavings accountsCertificates of depositHolders may only report previously interest-bearing property as non-interest-bearing property if the holder has acontractual or similar legal right to stop the accrual of interest. Pending escheatment is not, in itself, a valid reasonto stop the accrual of interest. For example, interest-bearing property transferred into a non-interest-bearingomnibus account for the purpose of escheatment must be reported as interest-bearing at the rate of interest itaccrued prior to transfer to the omnibus account.Guidance on other increment-earning property
If property is increment-earning, holders must report the increments with sufficient detail to identify the principalproperty, the owner of the principal property, and any other information needed to connect the owner to theincrement(s).Whether property is increment-earning depends on the terms and conditions agreed upon between the holderand owner. Increment-earning property includes, but is not limited to: DividendsCapital gainsInterest and principal on bondsDetermine Property to be ReportedThe chart below outlines the various dates by which property must be reported and remitted, according todormancy period. Please see the NAUPA Standard Property Codes on page 12 for all property codes and theirrespective dormancy periods.ALL unclaimed property, regardless of amount, must be reported to the Minnesota Department of Commerce.Minnesota does not have a minimum reportable amount, as follows:Businesses and Other Organizations:One Year Dormancy PeriodItems Issued/Last Activity Date7/1/2018 through 6/30/20197/1/2019 through 6/30/20207/1/2020 through 6/30/2021Three Year Dormancy PeriodItems Issued/Last Activity Date7/1/2016 through 6/30/20177/1/2017 through 6/30/20187/1/2018 through 6/30/2019Five Year Dormancy PeriodItems Issued/Last Activity Date7/1/2014 through 6/30/20157/1/2015 through 6/30/20167/1/2016 through 6/30/2017Hold Until6/30/20206/30/20216/30/2022Report ByNovember 1, 2020November 1, 2021November 1, 2022Hold Until6/30/20206/30/20216/30/2022Report ByNovember 1, 2020November 1, 2021November 1, 2022Hold Until6/30/20206/30/20216/30/2022Report ByNovember 1, 2020November 1, 2021November 1, 2022Note: Life Insurance companies and other fraternal organizations must report by October 1st, as of the December31st next preceding, as follows:
Life Insurance and Other Fraternal Organizations:One Year Dormancy PeriodItems Issued/Last Activity Date1/1/2018 through 12/31/20181/1/2019 through 12/31/20191/1/2020 through 12/31/2020Three Year Dormancy PeriodItems Issued/Last Activity Date1/1/2016 through 12/31/20161/1/2017 through 12/31/20171/1/2018 through 12/31/2018Hold Until6/30/20206/30/20216/30/2022Report ByOctober 1, 2020October 1, 2021October 1, 2022Hold Until6/30/20206/30/20216/30/2022Report ByOctober 1, 2020October 1, 2021October 1, 2022Reporting Exemptions and ExceptionsGift Cards and Gift CertificatesGift certificates, gift cards, or layaway accounts issued or maintained by any person in the business of sellingtangible property or services at retail are considered exempt. Therefore, as an example, a gift card issued by aretail organization would most likely meet this exemption as it is in the business of selling tangible property atretail. A bank who issues a gift card will most likely not meet this exemption depending upon the nature of thecard as it is not in the business of selling tangible property at retail. Please see Minnesota Statute 325G.53 formore information on gift cards.Cooperative PropertyCapital credits of a cooperative are technically not exempt; however a cooperative may choose an alternateprocedure to distribute property as defined in Minnesota Statute 308A.711. In the event that an alternateprocedure to distribute property is not employed, the property is reportable to the State as unclaimed propertyafter 7 years.Negative ReportingMinnesota requires a holder to file a report even if there is no unclaimed property to submit.Holders must file a report of zero property (negative report) if: you are an entity located or incorporated in Minnesota, andyou are holding NO unclaimed property, oryou receive a request from our office requesting a report of zero property (negative report)If the above conditions do not apply, you are not required to submit a report of zero property (negative report).To file a negative report, please visit our online holder report submission portal.Attempt to Locate the Owners
Minnesota statutes 345.32 and 345.41(e) require Holders to comply with all due diligence efforts before reporting.Not more than 120 days before filing a report, holders must send written notice to the presumed owner at theowner’s last known address if: The Holder has in its records an address for the presumed owner that the Holder’s records do not discloseto be inaccurate; andThe claim of the apparent owner is not barred by the statute of limitations; andThe property has a value of 100 or moreIf the conditions above do not apply, you are not required to perform due diligence efforts.Performing due diligence efforts provides an opportunity for the Holder to re-establish contact with the owner andavoid escheatment by returning the property. If it is found that an owner for which we have received property isstill residing at the same address, or doing business at the same address reported by you as a Holder, and there isevidence that the due diligence requirement was not adhered to, you may be considered out of compliance withstate law and may be subject to penalties.You must allow the presumed owner at least 30 days to respond to your written notice before considering theproperty formally unclaimed. Written notification to the presumed owner must be sent based upon the tablebelow:Businesses and Other Organizations:Earliest Notice Sent to Owners7/1/20207/1/20217/1/2022Latest Notice to Owners10/1/202010/1/202110/1/2022Report By11/1/202011/1/202111/1/2022Life Insurance and Other Fraternal Organizations:Earliest Notice Sent to Owners7/1/20207/1/20217/1/2022Latest Notice to Owners9/1/20209/1/20219/1/2022Report By10/1/202010/1/202110/1/2022Please see our sample due diligence letter on the next page for an example of acceptable correspondence.
[Insert Date][Addressee][Street Address][City, State, Zip Code]Re: (Property Description)Account/Checking/Policy #:Dear (Owner Name(s)):We are currently holding unclaimed property, as defined by MN § 345, due to the person orpersons identified above. The owner may claim this property by completing and mailing thecoupon below, or by contacting us using the information below:[Holder Name][Holder Contact & email][Mailing Address][City, State Zip][Phone #][Fax #]Please contact us before (insert last date by which the Holder can refund property beforereporting to the state). Minnesota law requires us to submit this property to the MinnesotaDepartment of Commerce Unclaimed Property Program by November 1st of each year. If we donot hear from you before this date, you will have to contact the Department of Commerce afterNovember 1, [insert year] to claim your property.Please complete and sign this form to acknowledge ownership of the unclaimed propertyidentified above.Name DateStreet AddressCity State Zip CountyAction to be taken (check one):Reissue CheckUpdate AccountClose AccountOther (explain)Signature:
Prepare and Complete ReportNOTE: As of July 1st, 2017, the Minnesota Department of Commerce Unclaimed Property Program is nolonger accepting paper forms for reporting unclaimed property. Online or electronic submissions via CD are requiredReports submitted via paper forms or diskette will be rejectedReports must be submitted in the standard NAUPA electronic file format. You may use, but are not limitedto, the following products listed below to create your report:HRS Pro (supported by Avenu Insights & Analytics)The HRS Pro Web Standard product is free of charge and offers online submission directly from theirwebsite. If the Web Enterprise product or Desktop Enterprise application is preferred, a yearly subscriptionfee will apply. Please see the HRS Pro FAQ for further details.Please see the instructions in the Appendix for using the HRSPro Web Standard software.Aggregate ReportingMinnesota allows Holders to report in aggregate, meaning you may combine individual items under 100according to property type, and provide a single total for each type. Please utilize Owner Type “Aggregate” onlywhen reporting properties in aggregate. Claims initiated on properties reported in an aggregate frequently requirefurther assistance from the Holder to prove rightful ownership.Extension RequestsIf you find yourself unable to meet the reporting deadline, Holders have the opportunity to file for an extension,no later than 30 days prior to the reporting deadline. Holders must provide, in detail, the reason for the extensionwhen making their request and measures being taken to ensure they meet the extension deadline.Please see the Holder Request for Extension of Due Date to request your extension.Reciprocal ReportingIf you are located in Minnesota, and have a limited number (less than 5) of owners to report for another State, youmay report unclaimed funds for each of those States, however, you should be aware that other State’s reportingrequirements may differ from Minnesota, so it is generally in your best interest to report directly to the Statebased on last known address of the apparent owner. If you choose to report another State’s property toMinnesota, please use Minnesota reporting forms and report and remittance dates. The law for each Statedeter
Report submissions via our online holder report submission portal, or submissions via CD, are required Report submissions via paper forms or diskette will be rejected Safe deposit box contents must be mailed in a separate parcel from any report components (remittance checks, report-re
RPD-41201, NM Report of Unclaimed Property RPD-41202, List of Owners of Unclaimed Property RPD-41203, List of Owners of Unclaimed Stocks and Other Securities RPD-41204, List of Unclaimed Contents of Safe Deposit Boxes or Other Safekeeping Repositories RPD-41205, Holder's Negative Report RPD-41206, Holder's Request for Reimbursement
Jan 19, 2016 · Page 6 @BDO_USA_Tax BDO KNOWLEDGE Webinar Series ‒Unclaimed Property Compliance Update UNCLAIMED PROPERTY INTRODUCTION General Information All 50 states and the District of Columbia have enacted unclaimed property laws. The purpose of unclaimed property laws is to ensure the protection of abandoned property until the rightful
interest in the unclaimed property. Holder –A person (or entity) obligated to hold for the account of, or to deliver or pay to, the owner, property subject to the unclaimed property Act (765 ILCS 1026/). Due Diligence –The reasonable attempt by a holder to locate or notify apparent owners of unclaimed property as required by the Act.
Mar 01, 2013 · UNCLAIMED PROPERTY The “Disposition of Unclaimed Property Act”, O.C.G.A. Section 44-12-190 et. seq., protects the rights of owners of abandoned property and relieves those holding the property of the continuing responsibility to account for such property. Under the Act, when someone (“holder”), holds property that belongs to
UNCLAIMED PROPERTY INTRODUCTION General Information All 50 states and the District of Columbia have enacted unclaimed property laws. The purpose of unclaimed property laws is to ensure the protection of abandoned property until the rightful owner is located. Moreover, states use any derivative funds earned on such property for the public good.
GLENN HEGAR Texas Comptroller of . State law requires holders to report unclaimed property to the Texas Comptroller of Public Accounts What is Unclaimed Property? 2 Unclaimed property is any financial asset or tangible property* that has been abandoned by the owner .
Jul 01, 2021 · 2. HOW DOES PROPERTY BECOME “UNCLAIMED”? In accordance with the Code of Virginia, Uniform Disposition of Unclaimed Property Act (Chapter 11.1 §§ 55.1-2500 – 55.1-2545), property becomes unclaimed when the holder has not had contact with the owner of the property for a specified period of time. After the passage of the dormancy period, if
Aug 11, 2015 · BDO KNOWLEDGE Webinar Series ‒ Unclaimed Property Compliance Update Unclaimed Property Introduction General Information All 50 states and the District of Columbia have enacted unclaimed property laws. The purpose of unclaimed property laws is to ensure the protection of abandoned property until the rightful owner is located.
