Unclaimed property and credit professionals: an NACM teleconference.(Headline)

Unclaimed property is something that most credit professionals should account for and properly report. Fortunately, the important facts related to it were explained in an NACM teleconference August 21, entitled, "Unclaimed Property--What Every Credit Manager Needs to Know."

Two experts in the field were on hand to impart their knowledge to the teleconference attendees: Mark Paolillo, National Director and Valerie Jundt, Senior Manager of Deloitte & Touche LLP, an audit, tax, consulting and financial advisory firm, outlined what the legal requirements are for companies holding unclaimed property.

Paolillo said unclaimed property, after a dormancy period---a set length of time in which the rightful owner has not been found---must be turned over to the state government. This process is known as escheatment, which is the legal transfer of property. "The laws are designed to protect the rights of the lost property," Paolillo said. "The states stand in the shoes of the owner." Escheatment has its origins in British common law. Companies are responsible for submitting reports to states of the unclaimed property they have in their possession. Unclaimed property could be tangible property, or things of monetary value such as gift cards, cash value on insurance policies and checking or savings account balances. "It even refers to a person like a landlord who is holding a deposit," he added.

Unclaimed property must be reported to the state of the owner's residence. If that is not known, Paolillo ...