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Navigate California’s Unclaimed Property Reporting Cycle in 4 Simple Steps

Danielle Herring
December 23, 2019

It has been several years since California changed its unclaimed property reporting process, yet many holders are still unsure how to remain compliant. This is because California’s reporting cycle includes two different reports.

Below are the steps to submitting those reports and remaining compliant in California:

Step 1: Holder Notice Report

The first report is known as the holder notice report. This is where the holder sends details about the lost owners to the state. Holders do not send payment with the holder notice report. The purpose of this report is to provide the state with the information it will need to perform their own notifications.

Step 2: Update Records

When lost owners respond to the holder based on California’s pre-escheat notice and submit a claim, it is important that holders update the records in their reporting systems. Holders mark each record to show it has been paid to the owner when they return the value of the property back to the owner.

Step 3: Due Diligence

Due diligence for the following year is due before the remit report. When the holder runs letters for the next reporting cycle, the system will ignore those property records that have already been reported to the state on the previous holder notice report.

Step 4: Remit Report

California lets holders know when it is time to send remittance and the holder remit report for the owners who have not claimed their property from the holder. A reporting reminder is mailed to the person listed as the report contact. For the remit report, the holder must send details for the remaining owners and payment.

Any records that were not on the holder notice report must not be included on the remit report. If the holder has filed the holder notice report and new California records come in, the holder must submit the new records in a separate filing. This will start a new, separate cycle, with all new holder notice and remit reports.

Report Due Dates

Missing one filing deadline can make it extremely difficult to hit the deadlines that follow it. Below are the dates to be aware of for reporting unclaimed property in California:

  • Life Insurance Companies file the holder notice report by April 30 and the remit report between December 1 and 15.
  • All other holders file the holder notice report by October 31 and the remit report between June 1 and 15.

Reporting unclaimed property in California can be an extremely complex process. For more help, check out California’s General Reporting Quick Guide and the State of California Unclaimed Property Holder Handbook.

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Danielle Herring

In her role as compliance manager for unclaimed property reporting, Danielle Herring oversees support of the product, researches changes in state unclaimed property laws so the system is updated to comply with them, and tests changes to the system before they are released. Danielle also completes some report and letter processing for current clients, assists with their direct support, provides customer training, and helps with troubleshooting and questions about using the product. Outside of work, Danielle loves to garden and is a master gardener.
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