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: scott.harper@treasurer.mo.gov

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?