While the term "escheat" may conjure images of feudal lords or the monarch reclaiming property for which there is no known heir, today, a second image should sit beside it—that of a multibillion-dollar source of revenue for the states. CNN recently reported that states, federal agencies and other organizations collectively hold more than $58 billion in unclaimed cash and benefits.1 The Wall Street Journal reported last month that Delaware’s unclaimed property program has brought in $1.24 billion over the past three years alone, representing "its third largest revenue source behind income and franchise taxes over that time."2 New York’s revenue report estimates collecting $785 million in 2012 and projects more for the future, while California’s website reveals that it is currently in possession of more than $6.1 billion in unclaimed property.3

In this time of declining taxpayer revenues, it is perhaps not surprising that states around the country are ramping up their efforts to collect unclaimed property. In connection with these efforts, the states—often acting in groups assisted by third-party auditors—may vigorously probe into companies’ policies and practices in handling unclaimed property. Further complicating the situation, companies must comply with the laws and annual reporting requirements of each of the 50 states concerning a wide variety of potentially escheatable property. Additionally, although similar, the laws of each state may vary, some state requirements are not clearly defined, and there is limited case law to provide guidance.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]