This page addresses key areas of interest regarding Kentucky unclaimed property and escheatment laws and regulations.
Key Kentucky Unclaimed Property Reporting Deadlines
Businesses who are in possession of unclaimed property, often referred to as holders, are required to file annual unclaimed property reports electronically via the online reporting portal in Kentucky. All holders except insurance companies must file their reports before the November 1st deadline for the twelve (12) month period preceding July 1st of that year in order to maintain compliance with Kentucky unclaimed property laws and regulations. Insurance companies must file their reports before May 1st for the immediately preceding calendar year. Failure to report unclaimed property may be subject to fines, penalties, and audit by the state.
In many states, dormancy periods for property types vary depending on laws and requirements. In Kentucky, the dormancy period for most property types is three years before that property is eligible for escheatment.
Kentucky Due Diligence Requirements
Kentucky requires holders to make reasonable attempts to reach owners of property valued at $50 or more before turning over any escheatable property to the Kentucky Treasurer. These attempts are executed in the form of due diligence notices, and must be sent no more than 180 days nor less than 60 days prior to filing the report. There is specific language that must be included in the due diligences notices and holders must send notice via first class US mail and electronic mail to those owners who have consented to receive electronic communications from the holder.
Kentucky Record Retention Requirements
Kentucky has a ten (10) year record retention period.
Kentucky Reciprocal Reporting
The Commonwealth of Kentucky is an exchange state without a reciprocal Agreement. However, holders may report, and remit all property at the same time.
If property belongs to other states, holders should confirm the laws and reporting requirements for those states before filing reports. Since some states may not accept reciprocal reports, it is imperative holders review each jurisdiction’s laws and reporting requirements to avoid facing penalties.
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Kentucky Unclaimed Property Links
Because the reporting and remittance process for Kentucky escheated property presents challenges for organizations of all sizes, we do the best we can to provide helpful resources. Our resources help answer questions about requirements, or the laws that impact unclaimed property, and outline current challenges regarding unclaimed property. The link below answers frequently asked questions that can help your organization gain knowledge and important information about unclaimed property compliance and reporting.
Confused or Overwhelmed? Need Answers?
Property holders in the Commonwealth of Kentucky, and other jurisdictions, have found the annual reporting process can place a strain on their internal resources. We know, when managed properly, this process can be streamlined and have minimal impact on your day to day operation. Organizations of any size who need help or guidance to remain in compliance with the Commonwealth of Kentucky’s unclaimed property laws should contact Keane for help.