Tracking and Reporting Unclaimed Property Unclaimed Property Overview

Tracking and Reporting Unclaimed Property

Unclaimed Property Overview: • Returned a record $42 million representing 138, 907 accounts in FY 16. • Nearly $100 million was reported in FY 16. • 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.

Interesting 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.

History of Missouri’s Unclaimed Property Law 48 th 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 B 2 B exemption and dropped abandonment period for payroll to 3 years • •

Major Requirements of the Law • Identify Unclaimed Property • Perform Due Diligence prior to reporting the property • Report and Remit Unclaimed Property

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)

What Is Unclaimed Property? • • MONEY Financial Instruments Financial Obligations Safe Deposit Boxes are the only tangible items covered by the statutes.

WHEN IS PROPERTY CONSIDERED ABANDONED? • No Owner Activity • Lost Contact with the owner • Payable or distributable to owner

How 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

Where to find Unclaimed Property • Outstanding check listings • Court Bond listings • Unidentified remittances

Reporting 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.

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

Dormancy 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

Reporting 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

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 • 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.

Methods 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

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 • Use electronic reporting options if reporting over 50 owners • Online holder data entry function

ITEMS 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

Missouri’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

Unclaimed Property Holder Input System:

Registration Page

Adding New Report

Adding Properties to a Report

Adding Owner Information

Submitting Report

Finalizing Report

Search 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.

Holders 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.

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 Zweifel Division of Unclaimed Property Post Office Box 1272 Jefferson City, MO 65102 -1272 Site: www. showmemoney. com Email: scott. harper@treasurer. mo. gov