Managing an organization’s unclaimed property can be a full-time job. With the complexities of regulatory requirements, the numerous due diligence and dormancy tracking rules by property type and state, along with due diligence requirements, also varying by state, record retention needs in case of an audit, as well as reporting to multiple states, the process of completing the entire escheatment process can be downright daunting to say the least.
Outsourcing can be an effective way to reduce costs and improve efficiency. Some of your strategic and operational activities, such as unclaimed property reporting, are critical to meeting compliance requirements. Here are just a few of the benefits of outsourcing your unclaimed property processes:
- You do not have to memorize, track, and look up various state legal requirements. Service providers take on the burden of staying current on the constantly changing legislative and legal requirements in all states and jurisdictions.
- Using your data from source systems, an outsourcing provider should be able to run your data in their own unclaimed property reporting system based on property type, statutory requirements, and other factors to determine and track when that property becomes dormant (old enough to turn over to the state based on determined requirements)
- When property is considered dormant, an outsourcing provider can perform the required due diligence, following applicable laws, to attempt to reunite the property with its owner(s).
- Keeping track of and responding to due diligence inquiries with property owners is a critical piece in the due diligence process. Service providers should be able to offer a variety of options, including validation of responses, updating the property history with any returns from the post office, etc.
- A complete outsourcing provider should be able to do all of your reporting, regardless if you are reporting to one state or multiple states/jurisdictions.
When considering a company to outsource your unclaimed property reporting processes, make sure you select a team of experts having extensive knowledge, a solid and secure reporting system, proven excellent customer service, and that they will complete the process from start to finish. A solid outsourcing provider should be able to help you minimize your reporting exposure and comply with unclaimed property regulations in an accurate and timely manner. They should offer affordable and flexible options that will fit in well with your company’s unclaimed property needs.
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Get in touch with a Sovos unclaimed property expert to learn more about managing your unclaimed property compliance processes.
