This page addresses key areas of interest regarding Massachusetts unclaimed property escheatment laws and regulations.
The deadline for annual reporting and remittance in Massachusetts is November 1st for all holders except life insurance companies, who must report on May 1st. Early reporting is permitted with prior written approval from the administrator for cash property only. All holders have an obligation to report abandoned or unclaimed property to the state in order to maintain compliance with Massachusetts’ unclaimed property laws and regulations.
For any property that has a value of $100 or more, Massachusetts requires holders to perform due diligence mailings to locate owners. Due diligence letters must be sent each reporting cycle by first class mail at least 60 days prior to filing a report. In each due diligence notice, the holder must include:
- A description of the property
- A statement explaining that state law requires holders of abandoned property to report and remit such property after a designated dormancy period,The date that the property will be remitted to Massachusetts Unclaimed Property Division absent contact with the owner.
Massachusetts has reciprocal agreements with 29 other states. Businesses that are located within the Commonwealth of Massachusetts may file one unclaimed property report, containing property of owners who reside in different states. The State Treasurer will forward the names of any out-of-state owners and funds to the appropriate jurisdiction.
As a best practice, it is not recommended that you rely solely on reciprocal reporting without confirmation that the state to which you are reporting has an agreement with the state in which the property owners are located.
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Massachusetts’ unclaimed property reporting process can be challenging for holders. Does your organization have questions about state unclaimed property laws and requirements? Click on the link below for frequently asked questions regarding unclaimed property reporting and compliance.
Reporting unclaimed property in Massachusetts, and other jurisdictions, can be a stressful process that consumes valuable internal resources. However, when 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.