Michigan Escheat & Unclaimed Property Laws

Michigan Due Diligence Requirements

Michigan requires holders to send due diligence notifications for any property with a value of $50 or more. If the holder is reporting at least 25,000 properties over $50 each, this threshold value increases to $100. Due diligence letters must be sent each reporting cycle to the apparent owner’s last known address, not less than 60 days, nor more than 365 days before filing the annual report.

Michigan Voluntary Disclosure Agreement (VDA)

Michigan offers holders who have not previously reported or have under-reported unclaimed property a way to come into compliance through its Voluntary Disclosure Agreement. By submitting the Voluntary Disclosure Agreement form, holders agree to complete and file unclaimed property reports and remit payments for the current reporting year, and the previous four reporting years within six months from the date it is filed with the Unclaimed Property Division. Holders will not be charged penalties and interest on past due properties if it is voluntarily reported.

Still confused or overwhelmed? Try the Sovos UP Compliance Hub 

Reporting unclaimed property in Michigan, 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.