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Showing posts from April, 2019

Colorado Passes Version of 2016 Uniform Unclaimed Property Act

New Legislation, Which Reduces Many Dormancy Periods To 3 Years, Is Effective July 1, 2020   On April 16, 2019, Colorado Governor Jared S. Polis signed Senate Bill 19-088 into law, which adopts a version of the 2016 Uniform Unclaimed Property Act. Under the new law, the dormancy period for most property types will drop to 3 years (down from 5). Certain bank accounts and gift cards will still be subject to a 5 year dormancy period, and other items like payroll and dissolution proceeds will continue to have a 1 year dormancy period. With respect to securities, the new legislation imposes a 3 year dormancy period, that now begins to run upon the second instance of returned mail (as opposed to the former unclaimed dividend standard). The new law also leaves in place certain Colorado-specific exemptions that were in the prior Unclaimed Property Act, such as the exemption for certain lawyer trust accounts, gaming chips or tokens, property held by racetracks, and certain

Is "True Escheat" The Future of Unclaimed Property?

Nevada is considering a bill "providing that all property rights and legal title to, and ownership of" of U.S. savings bonds would "vest in this State" after three years. After that three year period, the state could choose to pay the proceeds to the rightful owner of the bond, but the decision to do so would be left to the state's discretion. West Virginia is considering similar legislation , A law proposed in Hawaii goes even further providing that all unclaimed property with a value of $100 or less shall immediately "escheat to the State and be transferred to the general fund." These are just a few examples of a new (and for unclaimed property owners, troubling) trend in unclaimed property legislation -- a shift from "custodial" escheat laws to "true" escheat laws. Currently, most state unclaimed property laws are "custodial" in nature -- meaning that the state takes possession of the unclaimed property on t