Holders of Unclaimed Property Requirements

A

The holders of unclaimed property are required to take certain steps in order to comply with state laws related to escheatment. Escheatment is the process by which unclaimed property is transferred to the state when the owner cannot be located.

The correct answer is A: Mail a notification to customers whose accounts may escheat to the state.

The steps that holders of unclaimed property are typically required to take include:

1. Due diligence: Holders must make a reasonable effort to locate the owner of the property before transferring it to the state. This may include sending a notification to the owner's last known address, searching public records, and using other resources to locate the owner.

2. Notification: If the owner cannot be located, the holder must notify the owner that the property will be transferred to the state if it remains unclaimed. The notification may be sent by mail to the owner's last known address, and must include information about the property, the holder, and the process for claiming the property.

3. Reporting: Holders must report all unclaimed property to the state, including information about the owner, the property, and the efforts that were made to locate the owner.

4. Transfer: If the property remains unclaimed after a certain period of time (usually 1-5 years), the holder must transfer it to the state. The state will then hold the property and make it available for claim by the owner or the owner's heirs.

It is important to note that holders of unclaimed property are not allowed to charge "inactive/unclaimed" fees for accounts that are dormant (answer B). They also are not required to publish in a local paper the owners' names of accounts that will escheat (answer C) or discontinue paying interest on dormant accounts (answer D). Instead, they must follow the steps outlined above to comply with state escheatment laws.