Holder Reporting and Compliance
Each year, businesses and organizations, commonly referred to as “Holders”, are required to review their records to determine if they are in possession of any unclaimed property. If property is found, Holders are required to complete and submit a report.
Parent organizations have a duty to ensure that unclaimed property held by their subsidiaries is reported. Principals have a duty to see that unclaimed property in the hands of their agents (including stock transfer, dividend, and payroll disbursing agents) is reported. Receivers and liquidating trustees have a duty to report for entities in receivership or liquidation.
Common holders of reportable property include, but are not limited to:
- financial institutions,
- insurance companies,
- oil and gas companies,
- state and local government agencies,
- real estate agents,
- and retailers.
If you are holding unclaimed property belonging to Minnesota residents, you must file a report with the Minnesota Unclaimed Property Program, even if you are not registered or licensed to do business in Minnesota.
Businesses and other organizations are required to report and remit unclaimed property by November 1st. Life Insurance companies and other fraternal organizations are required to report and remit unclaimed property by October 1st.
Are you holding unclaimed property?
Unclaimed property refers to various types of intangible property that has been abandoned for a specified period of time. Examples include, but are not limited to:
- savings and checking accounts,
- uncashed checks,
- insurance refunds and wages.
The only tangible property that is reported is the contents of safe deposit boxes; real estate and other tangible property are NOT reportable to the State of Minnesota, but may be reported to local municipalities. According to the Minnesota Uniform Disposition of Unclaimed Property Act, all unclaimed property must be reported to the Minnesota Department of Commerce.
Anyone who willfully fails to report is guilty of a misdemeanor. Anyone who refuses to pay or deliver abandoned property is guilty of a gross misdemeanor. Anyone failing to pay or deliver property by the reporting due date may be charged interest at the rate of 12% per year on the value of the unclaimed property. In addition, the Minnesota Department of Commerce has broader penalties that may apply.