This blog was last updated on February 23, 2021

Part of a 2017 amendment to Delaware’s unclaimed property law has left many people confused. According to Del. Code Ann. tit. 12, § 1170(b), if the state feels that a report is inaccurate or incomplete the company may be selected for a compliance review. There is not a clear definition to which the policy applies in regard to a certain type of holder qualifying for a review.

If you are incorporated in Delaware but not filing records or filing negative reports, this may increase the odds that you could be selected for a compliance review. You would then have to provide documentation of your unclaimed property policies and procedures. Most likely, companies outside of the state will not be contacting you to create policies and procedures, but this is something that your company may elect to do. The state will contact you if anything needs to be done or you can contact them with questions you may have.

In choosing an unclaimed property software or outsourcing vendor, you will want to be sure they work closely with all the states in regards to escheatment processes and compliance.