This page addresses key areas of interest regarding Maryland unclaimed property escheatment laws and regulations.
Key Maryland Unclaimed Property Reporting Deadlines
All holders have an obligation to report abandoned or unclaimed property to the state in order to maintain compliance with Maryland’s unclaimed property regulations. The deadline to submit unclaimed property reporting and remittance files to Maryland is October 31st. Insurance companies must submit their reports by April 30th.
In some cases, holders may request an extension from Maryland’s unclaimed property administrator. If holders expect to have difficulty submitting unclaimed property reports on time, they may submit an extension request in writing before the report deadline and should include their federal employer identification number, the specific amount of time needed to complete and file the report, and the reason for the extension. Extensions are granted on a case by case basis.
Negative reports are required in Maryland for nursing homes, banking and financial organizations, insurance companies, and utilities. Maryland also requires negative reports to be filed if:
- The holder’s information has changed;
- The report is the final report of a holder who has reported in the past; or
- The holder is incorporated in Maryland.
Holders with no filing history in Maryland should not submit negative reports
Maryland Due Diligence Requirements
For property that is valued at $100 or more, Maryland requires holders to send due diligence notices. Due diligence notices must be sent each reporting cycle by first class mail at least 30 days, and not more than 120 days prior to filing a report.
In each due diligence notice, the holder must inform the apparent owner that:
- The holder is in possession of the property
- The property will be considered abandoned unless the owner responds within thirty (30) days of the notice.
Maryland Reciprocal Reporting Agreements
Holders may report unclaimed property for owners who reside in other states by using the abandonment period(s) required by the state of the owners’ last address and notifying the other states of the intention to report via the Comptroller. The Comptroller will then forward the accounts to the appropriate states.
Holders should not depend solely on reciprocal reporting. As a best practice, it is recommended that holders confirm that the particular state has an agreement with Maryland to ensure that owners are located. Additionally, reciprocity agreements are subject to change and thus the information should be verified with the particular state in question.
Maryland Unclaimed Property Links
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Maryland Reporting and Record Retention
Holders of unclaimed property in Maryland are required to retain a record of the name and last known address of the owner for a period of eight (8) years after the property becomes reportable.
We understand Maryland’s unclaimed property reporting process is often challenging for holders. If your organization has questions about Maryland’s unclaimed property laws and requirements, click on the link below for frequently asked questions regarding state unclaimed property reporting and compliance requirements.
Confused or Overwhelmed? Need Answers?
Reporting unclaimed property in Maryland and other jurisdictions must be managed properly, and can be stressful. We also understand the process can place a burden on valuable internal resources. If properly managed, the annual reporting and escheatment process does not need to be a burdensome experience.
Contact Keane for assistance in guiding your organization on the path to unclaimed property compliance, or visit our resource library for additional educational and operational resources.