Wednesday, April 25, 2018

Kentucky Becomes Latest State to Adopt Version of 2016 UUPA

Kentucky Governor Matt Bevin recently signed House Bill 394 into law, which enacts a version of the 2016 Revised Uniform Unclaimed Property Act promulgated by the Uniform Law Commission.  The new law incorporates many of the Uniform Act's structural and procedural changes, including the establishment of a formalized audit appeal procedure, detailed provisions relating to confidentiality, and rules relating to the reporting and remittance of unclaimed life insurance policies.
The adoption of the Uniform Act provisions also resulted in some substantive changes from the earlier Kentucky Unclaimed Property Act.  For example:
  • The dormancy period for money orders has increased from 3 years to 7 years;
  • The dormancy "trigger" for securities has changed from inactivity to a returned mail standard;
  • Stored value cards are now expressly covered by the Act, with a dormancy period of 3 years from December 31 of the year or issuance or last activity.
Kentucky is the fifth state to adopt a version of the 2016 Revised Uniform Unclaimed Property Act.
In addition to implementing the 2016 Uniform Unclaimed Property Act, the new law also requires the State Treasurer to submit a report to the legislature regarding the "status of the abandoned property fund" at the end of the year.

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