Delaware is sending voluntary disclosure agreement invitations to holders believed to be out of compliance with its unclaimed property laws. In a slight change in policy, Delaware indicated that any holders that choose not to enroll in the VDA program will be audited.
On November 2, 2018, Illinois proposed Administrative Rules (IL 17858 2018) that would amend its Unclaimed Life Insurance Benefits Act to, among other things, implement a Lost Policy Finder Service, establish the minimum standards for a “good faith effort” to locate beneficiaries, and define the term “electronic searchable files.”
The verdict against Overstock likely means that Delaware will further scrutinize companies utilizing similar giftco structures and could possibly subject them to litigation or audit, even forcing some to re-domesticate outside of Delaware to avoid such scrutiny. Gift card holders should be overly cautious and be prepared to defend their organizational structures to the state.