As the state of incorporation for many of the country’s largest corporations, Delaware holds a prominent position within the unclaimed property landscape. As such, when Delaware makes changes to its unclaimed property laws, the holder community surely takes notice. Here’s what holders should take away from DE Senate Bill 13.
Washington State recently announced that unclaimed property holders will have an opportunity to avoid penalties and interest for any past-due property through their waiver program. Qualified holders can forego penalties for prior unreported periods as long as they report and remit payment for outstanding unclaimed property before November 1, 2017.
The U.S. District Court of Delaware dismissed a July 2016 action brought by Office Depot contending that Delaware’s unclaimed property law was preempted by federal law, citing the trilogy of US Supreme Court cases that established the jurisdictional priority rules.
States have now begun to introduce legislation based in part off of the RUUPA in order to help shape unclaimed property law in their respective jurisdictions. To date, six states have proposed to adopt provisions from the RUUPA, with some differences, that would significantly overhaul their unclaimed property statutes.
Representatives from the American Bar Association (ABA) have indicated that it intends to move forward with the drafting of a new unclaimed property model act that would serve as a clear alternative to the Revised Uniform Unclaimed Property Act (RUUPA) drafted by the Uniform Law Commission.