keane fms 9-17-2013 - fms maryland - home...
TRANSCRIPT
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Michael J. Ryan
Reporting Unclaimed Property
for the Banking Industry
within the
Mid-Atlantic States
FMS Annapolis September 17, 2013
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Agenda
Introduction
Who is Keane
Purpose of the Law
Not a Tax
Unclaimed Property Acts
The Supreme Court
The Red Flag
Where to Report
Property types & Dormancy
Holder obligations
Getting into compliance
Abandonment and Activity
Due Diligence
Advertising
Important Dates
The Timeline
State Contact Info
Resources
Keane 2013 CONFIDENTIAL 2
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Who is Keane?
The Unclaimed Property Partner of M&T Bank
Leader of Unclaimed Property Services
Largest Unclaimed Property Company in the country
Headquartered in New York City, Operations Center in King of Prussia, PA
and regional offices in CA, GA, ND, and OH
Staff of almost 200 including industry and unclaimed property experts, ex-
state employees, estate experts and attorneys
Only Unclaimed Property Company that handles the 3 Cs of UP:
Compliance
Consulting
Communications
Keane 2013 CONFIDENTIAL 3
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Purpose of the Law
As the State sees it:
Protect the interests and property rights of the owner
Relieve holders from the expense and liability associated with the
property
Ensure that any economic windfalls benefits the public, not an individual
holder
As the Holder sees it:
Non-tax revenue to the state
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How Unclaimed Property
Differs from a Tax?
Derivative rights doctrine
Nexus does not apply
The majority of states do not provide relief for reach-back based on a
statute of limitations
Where statute of limitations provisions exist, the limitation period is typically
longer than that applicable in taxation
Failure to report or the filing of a fraudulent report generally eliminates reach-
back relief afforded by limitation provisions
Few states provide for a traditional administrative appeals
process/remedy
Record retention requirements
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Uniform Unclaimed Property Acts
1954 Uniform Unclaimed Property Act
1966 Uniform Unclaimed Property Act
1981 Uniform Unclaimed Property Act
1995 Uniform Unclaimed Property Act
2014??
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Texas vs. New Jersey (1965)
Pennsylvania vs. New York (1972)
Delaware vs. New York (1993)
U.S. Supreme Court Case Law
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Where to Report?
1. State of owners Last Known Address
2. State of holders incorporation or domicile if address of owner is
unknown or foreign
3. State where transaction occurred (limited states have transactional
language incorporated in their status)
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Private Escheat
Causing the Loss of the
Owners Property Rights
Prior to the Time
the Property is
Reportable(taking property into income)
The Red Flag
In Unclaimed Property
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Types of Unclaimed Property
Saving Accounts
Checking Accounts
Money Orders / Travelers Checks
Safe Deposit Box Contents
Stock and Dividends
IRAs
Payroll
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State of Delaware
Saving Accounts AC02 5 Years
Checking Accounts AC01 5 Years
CDs AC03 5 Years
Money Orders CK07 5 Years
Cashiers Checks CK01 5 Years
Stock and Dividends SC01/12* 3 Years
Safe Deposit Box Contents SD01 5 Years
* Stock types can vary; i.e. SC08 for RPO, SC10 Un-exchanged
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State of Maryland
Saving Accounts AC02 3 Years
Checking Accounts AC01 3 Years
CDs AC03 3 Years
Money Orders CK07 3 Years
Cashiers Checks CK01 3 Years
Stock and Dividends SC01/12* 3 Years
Safe Deposit Box Contents SD01 3 Years
* Stock types can vary; i.e. SC08 for RPO, SC10 Un-exchanged
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State of New Jersey
Saving Accounts AC02 3 Years
Checking Accounts AC01 3 Years
CDs AC03 3 Years
Money Orders CK07 3 Years
Cashiers Checks CK01 3 Years
Stock and Dividends SC01/12* 3 Years
Safe Deposit Box Contents SD01 5 Years
* Stock types can vary; i.e. SC08 for RPO, SC10 Un-exchanged
Keane 2013 CONFIDENTIAL 12
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State of New York
Saving Accounts 1B 3 Years
Checking Accounts 1A 3 Years
CDs 1C 3 Years
Money Orders 2C 3 Years
Cashiers Checks 2B 3 Years
Stock and Dividends 3D/E 3 Years
Safe Deposit Box Contents The Unique Process
Keane 2013 CONFIDENTIAL 13
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State of Pennsylvania
Saving Accounts AC02 5 Years
Checking Accounts AC01 5 Years
CDs AC03 5 Years
Money Orders CK07 7 Years
Cashiers Checks CK01 5 Years
Stock and Dividends SC01/12* 5 Years
Safe Deposit Box Contents SD01 5 Years
* Stock types can vary; i.e. SC08 for RPO, SC10 Un-exchanged
Keane 2013 CONFIDENTIAL 14
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State of Virginia
Saving Accounts AC02 5 Years
Checking Accounts AC01 5 Years
CDs AC03 5 Years
Money Orders CK07 7 Years
Cashiers Checks CK01 5 Years
Stock and Dividends SC01/12* 5 Years
Safe Deposit Box Contents SD01 5 Years
* Stock types can vary; i.e. SC08 for RPO, SC10 Un-exchanged
Keane 2013 CONFIDENTIAL 15
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Holder Obligations
Duty to file a report
Duty to perform due diligence (most states)
Duty to remit property
Duty to maintain copies of reports
Duty to protect and safeguard funds until reported to the states
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Delaware Important Dates
June 30th
Cut-off Date
August 31st
Publication Notice Due
September 10th
First Class Mailing completed
November 10th
Final Report and Remittance is Due
Keane 2013 CONFIDENTIAL 17
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Maryland Important Dates
June 30th
Cut-off Date
September 1st
First Class Mailing completed
November 1st
Final Report and Remittance is Due
Keane 2013 CONFIDENTIAL 18
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New Jersey Important Dates
June 30th
Cut-off Date
August 1st
First Class Mailing completed
September 1st
Certified Mailing completed
November 1st
Final Report and Remittance is Due
Keane 2013 CONFIDENTIAL 19
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New York Important Dates
June 30th
Cut-off Date
August 10th
First Class Mailing completed
August 31st
Publication Notice Due
September 10th
Proof of Publication Due
Certified Mailing Completed
November 10th
Final Report and Remittance is Due
Keane 2013 CONFIDENTIAL 20
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Pennsylvania Important Dates
December 31st
Cut-off Date
January 15th
First Class Mailing completed
April 15th
Final Report and Remittance is Due
Keane 2013 CONFIDENTIAL 21
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Virginia Important Dates
June 30th
Cut-off Date
September 1st
First Class Mailing completed
November 1st
Final Report and Remittance is Due
Keane 2013 CONFIDENTIAL 22
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The Fall Timeline
Keane 2013 CONFIDENTIAL 23
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The PA Timeline
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Delaware Information
State of Delaware
Office of Unclaimed Property
Department of Finance
820 North French Street, 8th Floor
Wilmington, DE 19801
http://revenue.delaware.gov/unprop/unprop_holders.shtml
Email DE at: [email protected]
Call DE at: 1.800.379.3999
Keane 2013 CONFIDENTIAL 25
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Maryland Information
Unclaimed Property Unit
Comptroller of Maryland
P O Box 17161
Baltimore, MD 21297-1161
http://compnet.state.md.us
Call MD at: 1.410.767.1700
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New Jersey Information
State of New Jersey
Department of the Treasury
P O Box 214
Trenton, NJ 08695-0214
http://www.unclaimedproperty.nj.gov/
Call NJ at: 1.609.292.9200
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New York Information
State of New York
Office of the State Comptroller
110 State Street
Albany, NY 12236
http://www.osc.state.ny.us/ouf/index.htm
E-Mail NY at: [email protected]
Call NY at: 1.800.221.9311
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Pennsylvania Information
Commonwealth of Pennsylvania
Treasury Department
Bureau of Unclaimed Property
P O Box 1837
Harrisburg, PA 17105-1837
http://www.patreasury.gov
Email PA at: [email protected]
Call PA at: 1.800.379.3999
Keane 2013 CONFIDENTIAL 29
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Virginia Information
Commonwealth of Virginia
Department of the Department
Division of Unclaimed Property
101 North 14th Street, 3rd Floor
Richmond, VA 23219
http://www.trs.virginia.gov/ucp/default.aspx
Call VA at: 1.800.468-1088
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Resources
Surf the web Google Unclaimed Property
www.uppo.org Forums
Other members
Members as Mentors
Service Providers
Upcoming Conferences/Webinars
www.unclaimed.org List of States
Connect directly to their state
www.keaneup.com Sign up for free newsletter/alerts
Keane 2013 CONFIDENTIAL 31
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Keane 2013 CONFIDENTIAL 32
Special Thanks to
Mark Davis
410.244.4436
Karen Stiltner
410.244.4927
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Overview of Keanes
Unclaimed Property Services
for the Banking Industry
Keane 2013 CONFIDENTIAL 33
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Keane Services
Owner Location
Locate lost customers
Activate dormant customers
Identify deceased customers
o Contact beneficiaries
o Locate legal claimants
Escheat Support
Reduce escheatable property via Owner Location
Ensure compliance with state laws
Provide Due Diligence Services
o 1st Class Mailings
o Certified Mail
o Advertising
Keane 2013 CONFIDENTIAL 34
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The Perfect Timeline
Keane 2013 CONFIDENTIAL 35
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The Process
Keane receives file of all dormant/escheatable accounts
Keane conducts analysis to:
Confirm Dormant Date (escheatable current year)
Address valid
o Mail letter to address
Locate new address
o Mail letter to new address
Owner deceased
o Above $2,500
o Locate Beneficiary or Legal Claimant
o Below $2,500
o Mail letter to address of record
Upon review, You approve letters and when to be mailed
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Account Retention & Escheat Reduction
Keane 2013 CONFIDENTIAL 37
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Communication Plan
Keane works with Your Bank to create letters that: Are customizable by Your Bank/Credit Union
Are customer-friendly
Improve response rate
Keane is invisible to living customers by including: Your Banks/Credit Unions Logo
Your Banks/Credit Unions return address
Your Banks /Credit Unions Customer Line for owner to contact
Keanes process is designed to: Retain assets and customer accounts
Reduce escheatment expenses (mailing, advertisement, etc.)
In regards to State-Mandated Due Diligence letters: We can create a process to meet your needs
Keane 2013 CONFIDENTIAL 38
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Legal Claimant Process
After the account owner is determined to be deceased, the account will be assigned to our research department. The research department investigates to determine if the Decedent had an Estate.
If the decedent has an open estate, Keane will contact the estate fiduciary. If the decedent has a closed estate, we will review the estate proceedings with the assistance of Keanes General Counsel to determine who the residuary beneficiary of the decedents last will and testament is or if the lost asset was specifically bequeathed to someone.
If there is only a Last Will and Testament (LWT) on file, Keane reviews the LWT to determine who is the nominated executor(s) and who the residuary legatees are named in the LWT. These people/charities, etc. will be located and contacted.
If there is no Estate on file, Keane will endeavor to locate an obituary for the decedent. If no obituary is found, Keane will endeavor to locate past addresses of the decedent to potentially identify other family members that lived at the same address.
If Keane is still unable to locate a next of kin, additional documents (e.g. death certificates, census records, etc.) are ordered. These documents identify/locate children, siblings, parents, etc.
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Legal Claimant Process
After the appropriate Legal Claimants are identified and an agreement is
executed, Keane will take the required steps recover the account.
When there is no estate for a decedent, Keane will endeavor to recover the asset with
a waiver of probate bond or a small estate affidavit (SEA).
If the value of the asset exceeds the limitations set with regard to the use of a waiver
of probate or an SEA, Keanes General Counsel retains an outside attorney on behalf of
the Legal Claimants to open an estate for the decedent.
The outside attorney will assist the legal claimants by petitioning the Court to have one
of them appointed as the fiduciary of the estate. Keanes research team will provide
the necessary documentation (i.e. a family tree, census records, death certificates,
affidavits of due diligence) to support the application with the Court.
Once the proper method of recovery is determined, the appropriate documents
are sent to the Legal Claimant(s) for signature. Upon Keanes receipt of the
executed documents, they are submitted to the broker with any legal documents
(i.e. fiduciary letters, SEA, etc.) that are required for the transaction.
Keane 2013 CONFIDENTIAL 40
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Contact Information
Michael J. Ryan
646.770.9205
Keane 2013 CONFIDENTIAL 41