Unclaimed Property Laws: Do Massachusetts Non-Profits Comply?

Unclaimed property laws in Massachusetts apply to a variety of assets, including bank accounts, insurance policies, and contents of safety deposit boxes. These laws are designed to protect consumers by holding unclaimed funds until the rightful owner or their heirs come forward. The state's Unclaimed Property Division facilitates the process of reconnecting citizens with their abandoned property, which becomes unclaimed after a certain period of inactivity, typically three years. While the specific laws and regulations regarding unclaimed property in Massachusetts are extensive, it is unclear if they directly apply to non-profits in the same way as they do to individuals and businesses. Therefore, further investigation into the specific laws and their applicability to non-profits is warranted.

Unclaimed property reporting deadlines

In Massachusetts, property becomes "unclaimed" when the owner cannot be contacted after three years. Businesses must review their records every year for unclaimed properties and report them to the state.

The deadline for annual reporting and remittance is November 1 for all holders except life insurance companies, which must be reported by May 1. Early reporting is permitted with prior written approval from the administrator for cash property only.

There are specific annual reporting deadlines, depending on the type of holding company or the type of unclaimed property being reported and remitted. For example, the reporting deadline for safe deposit boxes is September 1.

For any property that has a value of $100 or more, Massachusetts requires holders to perform due diligence mailings to locate owners. Due diligence letters must be sent by first-class mail at least 60 days before filing a report. The holder must include a description of the property, a statement explaining that state law requires holders of abandoned property to report and remit such property after a designated dormancy period, and the date that the property will be remitted to the Massachusetts Unclaimed Property Division if there is no contact with the owner.

Due diligence requirements

In Massachusetts, property becomes "unclaimed" when the owner cannot be contacted after three years. Businesses must review their records annually for any unclaimed properties and report them to the state. This process is known as "escheatment".

The Unclaimed Property division of the Massachusetts state Treasury connects citizens with their abandoned property, such as bank accounts, uncashed checks, stocks or dividends, insurance policies, or the contents of safe deposit boxes. The state holds this reported property until the rightful owner or heir claims it.

Holders of unclaimed property must perform due diligence to demonstrate that they attempted to locate the rightful owner. For any balance exceeding $100, a written notice must be sent to the owner's last known address at least 60 days before the unclaimed property report is filed. Due diligence letters must be sent via first-class mail and include the following:

• A description of the property
• A statement explaining that state law requires holders of abandoned property to report and remit such property after a designated dormancy period
• The date that the property will be remitted to the Massachusetts Unclaimed Property Division if there is no response from the owner

Records must be kept to prove that due diligence was completed, including whether mail was returned as undeliverable.

Dormancy periods

In Massachusetts, dormancy periods vary depending on the property type. Most property types have a dormancy period of three years, after which the property is considered dormant if the owner has not indicated any interest or made contact. Here are some specific dormancy periods for different types of property in Massachusetts:

• Wages, payroll, or salary: three years
• Safety deposit box contents: seven years
• Traveler's checks: 15 years
• Non-bank money orders: three years
• Certificates of deposit: three years
• Official bank checks: three years
• Life insurance matured: three years
• Dissolution/liquidation: one year
• State courts/agencies: three years
• Federal courts/agencies: no provision

These dormancy periods are essential in determining when property is considered abandoned and subject to the state's unclaimed property laws. The Unclaimed Property Division of the Massachusetts state Treasury is responsible for receiving and holding abandoned property, such as bank accounts, uncashed checks, stocks, insurance policies, and safe deposit box contents.

Unclaimed property division

The Unclaimed Property Division of the Massachusetts State Treasury deals with unclaimed or abandoned property. This includes bank accounts, uncashed checks, stocks, dividends, insurance policies, and the contents of safe deposit boxes. The state holds this reported property until it is claimed by the rightful owner or heir.

The Unclaimed Property Division receives abandoned property from banks and other holding companies after the owners have not been contacted for three years. The Division then provides tools for citizens to search for and claim their property, which they must prove is rightfully theirs.

Massachusetts has specific laws and regulations regarding unclaimed property, including reporting deadlines and due diligence requirements. The deadline for annual reporting and remittance is November 1 for all holders except life insurance companies, which must report on May 1. For property valued at $100 or more, holders must perform due diligence mailings to locate the owners. These mailings must be sent by first-class mail at least 60 days before filing a report and include a description of the property, an explanation of the state law, and the date the property will be remitted to the Unclaimed Property Division.

Dormancy periods in Massachusetts vary by property type, with most property types having a three-year dormancy period. Accounts are considered dormant if the owner has not indicated any interest or contact during the allotted dormancy period. For example, wages, payroll, and salary have a three-year dormancy period, while safe deposit box contents have a seven-year period, and traveler's checks have a 15-year period.

Claiming unclaimed property

In Massachusetts, the Unclaimed Property division of the Massachusetts state Treasury helps citizens to connect with their abandoned property. This includes bank accounts, uncashed checks, stocks or dividends, insurance policies, or the contents of safe deposit boxes. The state holds reported unclaimed property until the rightful owner or heir claims it.

To claim unclaimed property in Massachusetts, you can follow these steps:

• Search for unclaimed property: You can search for unclaimed property online through the Unclaimed Property Division's database, FindMassMoney.gov. Enter your information in the search form to see if any property matches your details.
• Select the property and start your claim: If you find property that belongs to you, select it and click "Start Claim."
• Submit your claim: Enter the requested information and submit your claim. After submitting, you will receive an email with instructions on the next steps to prove your claim. Some claims may be automatically approved, but most will require additional information to verify that you are the rightful owner.
• Allow time for processing: It typically takes about 180 days to process a claim. You can check the status of your claim at any time.

Dormancy Periods and Reporting Deadlines

It is important to note that dormancy periods and reporting deadlines vary depending on the type of property. In Massachusetts, most property types have a three-year dormancy period before they are considered abandoned or unclaimed. However, safe deposit box contents have a seven-year dormancy period, and traveler's checks have a 15-year dormancy period.

The deadline for annual reporting and remittance is November 1 for most holders, except for life insurance companies, which must report on May 1.

Frequently asked questions