Kentucky Escheat & Unclaimed Property Laws

Businesses that are in possession of unclaimed property, often referred to as holders, are required to file annual unclaimed property reports electronically via the online reporting portal in Kentucky. Reports for life insurance holders and non-life insurance holders must be filed by April 30, while all other reports must be filed by October 31. All holders except insurance companies must file their reports before the November 1 deadline for the 12-month period preceding July 1 of that year in order to maintain compliance with Kentucky unclaimed property laws and regulations. Insurance companies must file their reports before May 1st for the immediately preceding calendar year. Failure to report unclaimed property may be subject to fines, penalties, and audit by the state.

In many states, dormancy periods for property types vary depending on laws and requirements. In Kentucky, the dormancy period for most property types is three years before that property is eligible for escheatment.

Kentucky Due Diligence Requirements

Kentucky requires holders to make reasonable attempts to reach owners of property valued at $50 or more before turning over any escheatable property to the Kentucky Treasurer. These attempts are executed in the form of due diligence notices, and must be sent no more than 180 days nor less than 60 days prior to filing the report. There is specific language that must be included in the due diligences notices and holders must send notice via first class U.S. mail and electronic mail to those owners who have consented to receive electronic communications from the holder.

Kentucky Dormancy Periods

In many states, dormancy periods for property types vary depending on laws and requirements. In Kentucky, the dormancy period for most property types is three years before that property is eligible for escheatment.

Dormancy periods in Kentucky for common property types include:

• Wages/Payroll, Salary – One year
• Checking Accounts – Three years
• Money Orders (Non-Bank) – Seven years

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