Massachusetts Escheat & Unclaimed Property Laws

The deadline for annual reporting and remittance in Massachusetts is November 1 for all holders except life insurance companies, who must report on May 1. All holders have an obligation to report abandoned or unclaimed property to the state in order to maintain compliance with Massachusetts’ unclaimed property laws and regulations.

Massachusetts Due Diligence Requirements

For any property that has a value of $100 or more, Massachusetts requires holders to perform due diligence mailings to locate owners. Due diligence letters must be sent each reporting cycle by first class mail at least 60 days prior to filing a report. In each due diligence notice, the holder must include:

• A description of the property
• A statement explaining that state law requires holders of abandoned property to report and remit such property after a designated dormancy period,
• The date that the property will be remitted to Massachusetts Unclaimed Property Division absent contact with the owner.

Massachusetts Dormancy Periods

Dormancy periods in Massachusetts vary by property type. Generally, most property types have a three-year dormancy period. Accounts are considered dormant if the owner of a property has not indicated any interest in the property or if no contact has been made for the allotted dormancy period for that property. Dormancy periods in Massachusetts for common property types include:

• Wages, Payroll or Salary: Three years
• Safe Deposit Box Contents: Seven years
• Traveler’s Checks: Fifteen years

Still confused or overwhelmed? Try the Sovos UP Compliance Hub 

Reporting unclaimed property in Massachusetts, and other jurisdictions, can be a stressful process that consumes valuable internal resources. However, when properly managed, the annual reporting and escheatment process does not need to be a burdensome experience.

The Sovos UP Compliance Hub is a subscription-based service that includes access to multiple educational and operational resources. Sovos compliance experts continuously monitor and update these resources. Compliance Hub subscriptions can be customized to suit your company’s unique business needs and compliance objectives. Connect with the experts at Sovos today to learn more.