Which State Receives Unclaimed Property Reporting and Escheatment?

B

The reporting and escheatment of unclaimed property is governed by state laws, and each state has its own rules and regulations. Generally, unclaimed property is any financial asset that has been abandoned by its owner for a certain period of time, such as a bank account, stock or mutual fund, or insurance policy.

In terms of which state receives the reporting and escheatment of unclaimed property, the answer is typically B: the state of the customer's last known address, if available and not foreign. This is because most states have adopted the Uniform Unclaimed Property Act, which provides that unclaimed property is presumed abandoned after a certain period of time (usually 3-5 years) and must be turned over to the state where the owner last had a known address.

However, it's important to note that there are some exceptions and variations to this rule. For example:

• If the property is a deposit account, such as a bank account, the state where the property is located (i.e. the state where the bank branch is located) may be responsible for receiving the reporting and escheatment of the property.
• If the bank is part of a multi-state operation, the bank holding company may be able to choose which state to report and remit unclaimed property to, but this will depend on the specific laws of the states involved.
• If the customer's last known address is in a foreign country, the unclaimed property may not be subject to escheatment in the U.S. and may need to be handled according to the laws of the foreign country.

In any case, banks and other holders of unclaimed property are responsible for identifying and reporting such property in accordance with the applicable state laws. Failure to do so can result in penalties and legal liabilities. Therefore, it is important for banks to have effective policies and procedures in place to manage unclaimed property and ensure compliance with state laws.