Unclaimed Property History of Missouris Unclaimed Property Law

Unclaimed Property

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

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 Property Governmental 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 Property Personal • 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 FY 11. • Largest amount returned was $6. 1 million to one individual. • Over $85 million was reported in FY 12. • 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 Zweifel Division of Unclaimed Property Post Office Box 1272 Jefferson City, MO 65102 -1272 Site: www. showmemoney. com Email: scott. harper@treasurer. mo. gov

UNCLAIMED PROPERTY TIPS

CLAIMING UNCLAIMED PROPERTY � Look ◦ ◦ ◦ for property by: District name Buildings’ names PTO names Booster names How are checks written to you?

School District’s 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 ◦ ◦

Avoiding 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 � 403 b/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. ”

Unclaimed Property Tips � Do NOT re-use vendor numbers! � Consider checks without addresses ◦ Athletic Officials ◦ Presenters

Unclaimed Property Resources � 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

What to Expect � 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.

You will also hear. . . � That ◦ ◦ ◦ is when I moved I divorced I had a death in the family My daughter was married Some other life event

What Information to Include? � Your contact name, phone number & address ◦ I received a letter without a return address � Check � Date Number of Check � Amount � Invoice of the Check Number

What Information to Include? � Options to: ◦ Reissue Check ◦ Donate the Check Amount ◦ Change Address or Last Name � Documentation death � PROVIDE required if name change or DUE DATE

Timing � November State � Send � Sept � Oct 1 - the deadline to submit to the letters in August / Oct to reissue checks to enter unclaimed property holders in the State’s system and submit by Nov. 1

QUESTIONS?