Keanotes

RUUPA Round Up

By Sovos Keane Compliance Team

September 4, 2020

ProvisionME S 481 (eff. 10/1/19) CO S 88 (eff. 7/1/20)VT H 550 (eff. 1/1/21)
Dormancy PeriodsDormancy periods stay the same for
many property types (3 years)
Dormancy reduced 5 to 3 years for
many property types (not banking)
Most dormancy periods stay the same
(3 years)
IRAsSame as RUUPA, including
pre-presumption outreach
Same as RUUPA, including
pre-presumption outreach
Same as RUUPA except IRA age
trigger=72 (aligns with SECURE Act),
including pre-presumption outreach
Other Tax Deferred AccountsSame as RUUPA but dormancy
reduced to 2 years if deceased
Same as RUUPASame as RUUPA
SecuritiesTrigger date depends on the type of
communication sent to owner
• First class mail at least annually:
trigger = RPO
• Electronic: if pre-presumption
outreach is RPO, trigger = DOLC
Same as RUUPA, including
pre-presumption outreach
Same as RUUPA, including
pre-presumption outreach
Due Diligence$50 threshold; same time frame and
content as RUUPA, as is requirement
to send notice via first class mail and
e-mail, but for securities over $1,000,
notice must be sent via certified mail
$25 threshold; holders may send
notice by first class mail OR by
e-mail; same time frame and content
as RUUPA, as is requirement to send
notice via first class mail and e-mail
$50 threshold; same time frame and
content as RUUPA, as is requirement
to send notice via first class mail and
e-mail
Transitional ProvisionNone5 years10 years
Other ChangesME H 1164 (eff. 6/16/20): gift
obligations phased out until exempt
in 2020. If 2019 or earlier, report
60% of balance (2020: 40%; 2021:
20%; 2022: 0%)
Holder deduction eliminated
No linking language for banking
property (CO S 146 would have
added the language in, but the bill
has been postponed indefinitely)
CO becomes a current to pay state,
meaning that once any amounts
such as royalties or mineral interests
are presumed abandoned, all future
amounts are presumed abandoned
and must be reported
Dormancy is reduced to 2 years if:
• The owner is deceased and the
dormancy period for the property is
greater than 2 years. For IRAs or other
tax deferred accounts, the 2-year
presumption of abandonment period
runs from the earliest of: the date of
distribution or attempted distribution,
the date of required distribution
per the plan or trust agreement, or
the date, if determinable by the holder,
specified in the income tax laws of
the U.S. by which distribution must
begin to avoid a tax penalty
• The holder charges an escheat or
inactivity fee and the dormancy
period is greater than 2 years. The
property is presumed abandoned 2
years from the owner’s last indication
of interest in the property

Disclaimer: The above graphic depicts states that have proposed, passed, failed, or withdrawn Revised Uniform Unclaimed Property Act (RUUPA) inspired legislation as of July 31, 2020. The graphic does not constitute legal opinion or legal advice, and should not be relied upon without first verifying
the same with your internal or external counsel. ©2020 Sovos Keane

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