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Unclaimed Property Law

“Cheat Sheet” – 2023 Edition

www.alston.com

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DISCLAIMER: The information provided herein is for general information and to assist in identification and discussion

of issues, but may not be completely updated or accurate, does not constitute legal advice, and should not be relied

upon without consulting with legal counsel experienced in this area of law.

Matt Hedstrom | +1 212.210.9533 | matt.hedstrom@alston.com | NEW YORK

the owner and therefore generally has no greater right to claim the property than the

owner.

 Unqualied and Liquidated Obligation: A state may only claim unclaimed property

when the owner has an unqualied right to the property and the amount of the property

is liquidated.

JURISDICTION TO ESCHEAT

 Primary Rule: If the holder has a record of the last known address of the owner of the

property, then the state in which the address is located has the primary right to claim the

property. (Texas v. New Jersey, 379 U.S. 674 (1965))

 Secondary Rule: If the holder has no record of the owner’s address or the address is in a

AK, AZ, AR, CO, CT, DC, FL, GA, HI, ID, IL, IN, KS, KY, LA, ME, MD, MI, MT, NV, NH, NJ, NM, ND,

OK, OR, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, and WY. Rule is likely unconstitutional.

Under RUUPA, the rule does not apply if property is specically exempt in the primary or

secondary state.

 Federal Disposition of Abandoned Money Orders and Traveler’s Checks Act (FDA):

Congress has overridden the Supreme Court’s common-law rules for a “money order,

traveler’s check, or other similar written instrument (other than a third-party bank check)

on which a banking or nancial organization or a business association is directly liable.”

These items are escheatable rst to the state where the instrument was purchased, and

next to the state of the holder’s principal place of business. The Supreme Court recently

 1995 Uniform Act: A “person obligated to hold for the account of, or deliver or pay to, the

owner property that is subject to this [Act].” (Sec. 1(6))

 2016 RUUPA: A “person obligated to hold for the account of, or to deliver or pay to, the

owner, property subject to this [Act].” (Sec. 102(12))

 Delaware v. New York: The holder is the “debtor” under state law (i.e., the person with the

legal obligation to the owner). (507 U.S. 490 (1993))

GENERAL TYPES OF UNCLAIMED PROPERTY

ESCHEATABLE IN MOST/ALL STATES

 Bank accounts

 Dividends

 Employee benets

 Money orders

 Wages

 Customer credits

 Retirement accounts

 Stock

 Deposits

 Credit balances

 Refunds

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CONTROVERSIAL TYPES OF UNCLAIMED PROPERTY

 Telephone cards

DORMANCY PERIODS

 Generally, 3 or 5 years for most types of property

 Exception: Unclaimed wages generally escheat after 6 months – 1 year

 Dormancy period should be “reset” by any owner contact reecting awareness of the

 No consideration paid for the property

 No obligation to pay cash to the owner

 Owner has failed to satisfy a condition precedent to receiving the property (including

expiration dates)

STATUTORY DEFENSES TO ESCHEAT

 Gift card exemptions: AL, AZ, AR, CA, CO (holders with annual gift card sales of $200K or

less), CT, FL, HI, ID, IL, IN, IA, KS, KY, MD, ME (escheatable % gradually reduced to 0% in

2022), MA, MI, MN, NE, NV, NH, NC, ND, OH, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WI, and

WY

 Laches/acquiescence

 Voluntary payment doctrine

 Estoppel

CONSTITUTIONAL DEFENSES TO ESCHEAT

 No de minimis exception in CT, MS, NE, or NY

 Less than $25 in CO

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 Less than $75 in WA

 Less than $100 (or $100 or less) in AK, KS, MD, MA, MN, OR, and VA

 $250 or less in TX

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