The state of Delaware recently made a significant changes to its unclaimed property law. It is important for all companies that report unclaimed property to this state to be aware of these changes, so they can remain compliant with the reporting process.
According to 12 Del. C. § 1170(a), the state of Delaware is now allowed to request a verified report of unclaimed property from a company that has already submitted a report to Delaware. By doing so, the state is taking active measures to complete a compliance review, ensuring the company has reported all unclaimed property it is holding correctly and at the right time.
Section 1170 of the law further details the verified report process, breaking it down into specific steps and requirements:
First, if a holder does or does not file a report required by section 1142 of this title, the State Escheator may require the holder to file a verified report in a form they prescribe.
Furthermore, if the State Escheator does decide the holder is required to file a verified report, it must fulfill allof the following requirements:
It must state whether or not the holder is currently in possession of unclaimed property that is reportable under this chapter.
Also, the verified report must describe property that was not previously reported, the state of Delaware has inquired about, or there is a dispute over, concerning whether or not it is reportable under this chapter.
Lastly, in the verified report, the holder must clearly state the amount or value of the property they are holding.
Second, the State Escheator may authorize a compliance review of a report in which the notification requirements of subsection 1172(a) of this title do not apply. In this case, the compliance review must be limited to the contents of the report filed following subsection a of this section, sections 1142 and 1143 of this title, and all supporting documents related to the report.
If the compliance review uncovers the holder has not reported all applicable unclaimed property that is due and payable to the state of Delaware, the State Escheator will notify the holder. They will do so in writing, stating the amount of deficiency within 1 year from the date the compliance review was authorized.
