Nearly every state requires relationship code values on unclaimed property (e.g. bank accounts, insurance policies, checks) records, according to NAUPA (The National Association of Unclaimed Property Administrators) standards.
Relationship codes are used in electronic reporting (NAUPA format) to tell states how owners are linked on an account when the report pertains to unclaimed property. Unclaimed usually refers to property that is dormant, unclaimed due to moving, or following the death of an account holder. With variations by state, relationship codes clarify ownership and allow claims to be properly processed and pay out the property to the rightful owner.
In this blog, we’ll go over what unclaimed property relationship codes are, how to find them, and how to use relationship codes.
- Relationship codes define how owners are linked in unclaimed property records
- Relationship codes determine claim payments and prevent disputes
- NAUPA relationship codes are widely recognized as standard, but states may have their own variations
- Common codes include SO (sole owner), AN (and), OR (or)
- Using the wrong unclaimed property record reporting codes can delay filings or cause compliance issues
What “Relationship Codes” Mean and Why They Matter
What are relationship codes in unclaimed property?
“Relationship codes” refer to codes that define owners for a specific property such as accounts, estates, or beneficiaries. These codes facilitate a streamlined process of claims, and NAUPA relationship codes are the standard, although they can vary by state.
Relationship codes help states to pay the right person/s correctly, prevent delays, and are essential for complex situations like trusts where ownership is not always clear.
Common Relationship Codes and Examples
Here are some common NAUPA relationship codes, what they indicate, and examples:
| Relationship Code | Description | Example |
| SO (Sole Owner) | Indicates a single owner | An uncashed check made out to John Doe would use the SO relationship code |
| AN/AND (And) | Indicates multiple owners where all named owners are required to claim together | An unclaimed checking account belonging to John Doe and Jane Doe where both parties must agree to the claim to claim separately would use the AN/AND relationship code |
| OR (Or) | Indicates multiple owners where any one owner can claim the property | An unclaimed savings account belonging to John Doe or Jane Doe could be claimed by either individual solely would utilise the OR relationship code |
| PO/POA (Power of Attorney) | Indicates an agent is authorized to act on behalf of the owner | John Doe is the owner of an unclaimed bank account, and his daughter Jennifer Doe submits a claim using a valid POA. A PO/POA relationship code would be used in this instance |
| EX (Executor/Executrix) | Indicates the person appointed to manage the property of the deceased | Jane Doe is named as the executor of John Doe’s estate, and upon his death the claim filed with the state would use the EX relationship code |
| CU (Custodian) | Indicates a person appointed to manage property for a minor | An account for a minor (Jack Doe) and managed by John Doe would be recorded using the CU relationship code |
| JT (Joint Tenants) | Indicates multiple owners with right of survivorship | A property jointly held as “John Doe, Jane Doe” which states that the surviving owner inherits the property upon the other owner’s death, JT would be the relationship code in this instance |
| FBO/BF (Beneficiary) | Indicates the person named to receive the property | In the case of a life insurance policy where Jane Doe is named as beneficiary, the FBO/BF relationship code would be used |
How to Find the Proper Relationship Code for Your State
There are state specific relationship codes (unclaimed property), including sole owner, and/or relationship codes. The NAUPA website search tool provides a state-by-state overview for unclaimed property, which includes state specific relationship codes.
Most states utilise the NAUPA II electronic format, which relies on these codes, however states often add, change, or omit certain NAUPA codes, so it’s important to consult your specific state’s unclaimed property holder manual for the definitively correct relationship codes.
Sovos can help too, as we offer state-specific reporting information as part of our compliance resources.
State-by-State Resources & How to Use Them
State-specific resources can be found on their treasury or controller website, often referred to as a “treasure hunt” when attempting to find relationship codes for unclaimed property.
The NAUPA website lets you use their free service to search many states simultaneously and has an interactive map to find your state’s official unclaimed property program. You can also find guidance on USA.gov for different types of unclaimed funds.
Tips When State Rules Don’t Match NAUPA Codes
State-specific requirements always take precedence when it comes to unclaimed property relationship codes. Consult the specific state’s unclaimed property resources which outline which NAUPA codes are accepted, which relationship codes are used instead, and any other formatting or data requirements.
Ensure that you verify the relationship code requested by the state for the specific unclaimed property, as they may vary. Data consistency and formatting is also important for non-NAUPA codes; make sure name and field formats match, avoid mixing formats, and use relationship codes to link accounts properly.
The best tip for navigating state-specific relationship codes is to use reporting software and compliance tools to manage the variations between state requirements and the NAUPA standard.
Best Practices for Using Relationship Codes in Reporting
When reporting using relationship codes for unclaimed property, NAUPA standard codes are best practice, however checking state variations is crucial.
The codes used must also apply consistently across all records, such as using SO for Sole Owner in all reports pertaining to that instance. All owner verification must be checked thoroughly (including names and IDs) to ensure no inaccuracies or errors are reported, which can lead to delays and rejections.
Conclusion
Relationship code compliance can be complex, as different states may require different codes for unclaimed property reporting and claims. When incorrect or inconsistent relationship codes are used, claims can be delayed or rejected, so ensuring that your state’s codes are aligned with NAUPA standards or verifying their chosen codes is key.
Get in touch with a Sovos unclaimed property expert to learn more about managing your unclaimed property compliance processes.
FAQ:
States require relationship codes to clarify ownership of unclaimed property, and to streamline the claim process.
Each state has the right to use their own specific codes, so you should always check their list of accepted codes by contacting the state directly or using their online resources.
The most common type of unclaimed property are uncased checks, dormant bank accounts, and unclaimed insurance policies.
NAUPA stands for The National Association of Unclaimed Property Administrators. They provide information and resources to help businesses and organisations across the USA to successfully report unclaimed property and remain compliant.
An unredeemed bond (typically a U.S. savings bond) is a bond that is fully mature but not yet been cashed in by its owner. These are often unclaimed property.