Unclaimed Property and Escheatment Terminology

Dormancy Period

The amount of time in which a holder does not have contact with an owner.

Due Diligence

Attempts by the holder to make contact with the owner for reclaiming their property.

Escheat

Laws related to unclaimed property that are required to be transferred to the state.

Escheatment

Process of turning over unclaimed property to the state.

Holder

A business that holds property that belongs to or is owed to someone else.

HRS Pro

Only software that has limited free capabilities to help format and encrypt data before reporting to the state. Some states require encrypted data, some do not. More information available at https://hrspro.unclaimedproperty.com/.

Negative Report

Reporting to a state that you have no unclaimed property to declare. Some states require negative reports, some do not.

NAUPA

The National Association of Unclaimed Property Professionals (NAUPA) leads and facilitates collaboration among government administrators in their efforts to reunite unclaimed property with the rightful owner. Current members are all 50 states, District of Columbia, Puerto Rico, Canadian Provinces (Alberta, British Columbia, New Brunswick, Quebec), Kenya. More information available at https://unclaimed.org/.

NAUPA File Format

Many states require unclaimed property to be reported to the state in the NAUPA II file format. Note that the next version of the file format which will likely have major changes called NAUPA III is under discussion and will be adopted as the new standard in the future. The NAUPA II file format is available at https://unclaimed.org/wp-content/uploads/NAUPAStandardElectronicFileFormat-11.20.19.pdf.

RUUPA

Revised Uniform Unclaimed Property Act (RUUPA) legislation introduced in 2016 and is being gradually adopted by states. Aims to bring uniform unclaimed property laws across states. Currently enacted in Utah, Tennessee, Kentucky, Colorado, Vermont, North Dakota, Indiana, District of Columbia. Introduced in South Carolina. All states have already or will likely adopt some form of RUUPA. More information available at https://www.uniformlaws.org/committees/community-home?CommunityKey=4b7c796a-f158-47bc-b5b1-f3f9a6e404fa.

Unclaimed Property

Not just property or land. Unclaimed or abandoned property includes any holdings in which there has been no activity generated or no contact with the owner for the dormancy period. Types of unclaimed property include: checking or savings accounts, stocks, uncashed dividends or payroll checks, refunds, traveler’s checks, trust distributions, unredeemed money orders or gift certificates (in some states), certificates of deposit, customer overpayments, utility security deposits, mineral royalty payments, contents of safe deposit boxes, insurance payments or refunds, life insurance policies, annuities.

UPPO

Unclaimed Property Professionals Organization (UPPO) is the only national nonprofit membership group dedicated to holders of unclaimed property and the service providers who help make holders’ jobs easier. More information available at https://www.uppo.org/.

VDA

Unclaimed property Voluntary Disclosure Agreement (VDA). Some states allow for a one time voluntary disclosure for first time filers to allow them to reconcile past unclaimed property obligations and move forward with unclaimed property compliance on a go forward basis.