Did you know Nevada recently made significant changes to its unclaimed property law?

Nevada was set to roll out significant changes to its unclaimed property law to affect how all unclaimed property was reported in 2023. However, as of June 30, 2023, that is no longer the case.

Previously, Nevada had announced its new laws would affect all unclaimed property set to be reported in 2023. Nevada has clarified that only changes to the law that do not affect dormancy triggers will be effective for the 2023 report year. All reports for this year are due before November 1, 2023.

However, companies can file an extension to this due date. Nevada allows companies to receive an up to 6-month extension during which all penalties and interest will be waived on unclaimed property that is not reported by the November 1, 2023, due date. To receive and approve this extension, companies must request an extension by September 30, 2023. Furthermore, this extension will only cover properties that are affected by the changes in the law active this year.

The form to request an extension can be found at 2013 Holder Report vrs 8.pub (nevadatreasurer.gov). Companies must complete and email this form to UPAudit@NevadaTreasurer.gov by September 30, 2023.

Here is a further breakdown of which changes to Nevada’s Unclaimed Property law will be effective for the 2023 report year:

1. If known or ascertainable, holders of unclaimed property are required to report the apparent owner of the unclaimed property:

   • Name
   • Last known address
   • Social security or taxpayer identification number
     

2. If the holder or an agent of the holder of the unclaimed property performs a deposit or withdrawal, it is no longer an indication of an owner’s interest in their unclaimed property.
   
3. When valued at $1,000 or more, due diligence notices must be sent using certified mail if
   they are informing the owner of these property types:

   • Stocks
   • Retirement accounts
   • Virtual currency
     

4. The IRS form W-8 BEN, which is the Certificate of Foreign Status of Beneficial Owner for
   U.S. Tax Withholding and Reporting, can be utilized as an indication of owner interest in
   a security when the owner’s last known address is a foreign country.

Here is a further breakdown of which changes to Nevada’s Unclaimed Property law will be effective for the 2024 report year:

1. Knowledge of the death of the owner is a required dormancy trigger if that date proceeds
   an otherwise applicable dormancy trigger for these property types:

   • Securities
   • Demand, savings, and time deposits
   • Debt of a business association or financial organization
   • Property in an individual retirement account, defined benefit plan, or other retirement account or plan
   • Any other property not explicitly addressed (the “catch-all” provision)
     

2. The Returned From Post Office (RPO) trigger for securities has been eliminated, resulting in a dormancy trigger of three years or no activity or knowledge of the owner’s death, whichever is earlier.
   
3. If IRAs are tax-deferred or tax-exempt, the RPO trigger is repealed, resulting in a substitution of the preexisting 70 ½ trigger with a required minimum distribution age based on current IRS requirements.
   
4. Changes the dormancy trigger for life or endowment insurance properties to the earliest of these:

   • The date of death of the insured or annuitant
   • The maturity date of the insurance policy or annuity
   • By the date the insured, if living, would have reached the limiting age under the mortality table on which the reserve is based.
     

5. Alters the dormancy trigger for pre-need and funeral trust contracts to the earliest of these:

   • The date the holder knows the beneficiary’s death.
   • The date the beneficiary named in or otherwise ascertainable from the prepaid
     contract has reached or would have reached, if living, the age of 105

Suppose the holder does not know about the beneficiary’s death and date of birth. In that case, the property is considered abandoned 40 years after the date the prepaid contract was executed or three years after the owner’s last indication of interest in the property.

We will continue to update you on any further changes in Nevada’s Unclaimed Property law as we are notified of them. However, for now, if you are a business in need of help with unclaimed property compliance, especially when it comes to complying with Nevada’s new laws, we are here to help.

Dunbar is a reputable provider of unclaimed property compliance services, offering a comprehensive suite of solutions to help organizations remain compliant with all applicable laws. With a professional team with decades of experience, Dunbar is the ideal choice for businesses seeking a reliable and knowledgeable provider for their unclaimed property compliance needs