I am working on unclaimed property question, which state rules our actions, the state where the bank is located or the state where the depositer lives?

If I have branches in 2 or 3 states, do I follow the rules for the state where the bank is headquartered or the state where the account was opened?

Thanks,

Ugh...we have branches in 2 states. The last I was aware, we remit to each state depending on branch location of property.

All our offices are in the same state. We follow rules based on the state where the customer lived at the time we lost contact.

SMQ - What about option 3 - the state where the customer is domiciled.

IMHO you should be checking the state abandoned property laws of where the customer is domiciled. I was working for a large regional bank and one of the compliance people spent several months of research and finally started seperating the accounts by domicile. Although we were in 3 states, we were submitting to 46 different ones.

I stand corrected, I believe I do remember state of domicile to be correct...I want to think there is a thread around here somewhere which goes into detail on this subject...I think I'll try and dig it up.

We use the laws of the state where the property is held. We started doing this when we began to get a lot of snow birds. They are retired and spend half the year South and the other half North. Either address could be valid and they frequently own both domiciles. The other example we had frequently was military personnel, especially officers. They will have addresses at their duty stations but pay taxes and own property in their home state.

Finally, the unclaimed property law in Illinois does not offer specific guidance on this, so our attorneys felt it better err on the side of caution. We know where we're located, we don't know where the customer is, and the customer knows where we are.

OK, found something.

"Every state and US territory requires holders of unclaimed or abandoned property to eschete or turn over the property of its residents after a prescribed period of time. . . .

You must eschete unclaimed property to the State of the owner's last known address as shown by your records, and you must follow the rules of that state. You cannot eschete only to the State where the account is held, or or where the holder is domiciled.

If the owner's last known address is not known by the records of the holder, or outside the United States, eschetement to the State where the holder is domiciled."

SB - After researching innumerable State escheat laws, I think you summed it up nicely.

What is it that you are quoting from?

Randy, thanks I'd like to take credit, but the source was research work by Kirchman.

One of the reference guides they have is an Eschetement Quick Reference Guide for the 50 states, defines the time, report dates, property to be escheted and definition of dormancy.

Thanks!

We are located in CA but we have depositors from far and wide. We haven't had any issues yet, but we will eventually.

California was actually the first state to sue for eschetement from accounts domiciled in other states back in the mid 1990's. Before then, everything was escheted to the state where the bank was located.

Wow, thanks for the work on that research SB. I wish I were happier to have the news. It just makes the job harder when we're dealing with snowbirds and their nomadic ways.

Wow, thanks, I think. You guys are great! Southern, was that info in the BOB? Looks like my job just got harder, again.

No, it was part of a series of individual guides that they have. The link is

Kirchman's guides

Your research is correct. The state where the person was last know to be before you lost contact is the law that governs. I understand some states have set up reciprocal agreements where they will collect for each other and exchange property. In other words, if you operate in State A, and your customer lives in State B, State A may allow you send it property for someone who lives in State B.

I think this is right, but I'm not 100% sure so you should talk to your host state unclaimed property department to find out more.