Keane FMS 9-17-2013 - FMS Maryland - Home Pagefmsmdchapter.org/images/downloads/keane_fms_9_17_2013.pdf · Who is Keane? • The Unclaimed Property Partner of M&T Bank • Leader

Michael J. Ryan

Reporting Unclaimed Property

for the Banking Industry

within the

Mid-Atlantic States

FMS Annapolis September 17, 2013

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

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


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


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


Uniform Unclaimed Property Acts

1954 Uniform Unclaimed Property Act




2014??


Texas vs. New Jersey (1965)

Pennsylvania vs. New York (1972)

Delaware vs. New York (1993)

U.S. Supreme Court Case Law

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)


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


Types of Unclaimed Property

Saving Accounts

Checking Accounts

Money Orders / Travelers Checks

Safe Deposit Box Contents

Stock and Dividends

IRAs

Payroll


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


State of Maryland



CDs AC03 3 Years







State of New Jersey



CDs AC03 3 Years







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


State of Pennsylvania



CDs AC03 5 Years







State of Virginia



CDs AC03 5 Years







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


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


Maryland Important Dates

June 30th

Cut-off Date

September 1st


November 1st



New Jersey Important Dates

June 30th

Cut-off Date

August 1st


September 1st

Certified Mailing completed

November 1st



New York Important Dates

June 30th

Cut-off Date

August 10th


August 31st

Publication Notice Due

September 10th

Proof of Publication Due

Certified Mailing Completed

November 10th



Pennsylvania Important Dates

December 31st

Cut-off Date

January 15th


April 15th



Virginia Important Dates

June 30th

Cut-off Date

September 1st


November 1st



The Fall Timeline


The PA Timeline


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


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


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


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


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


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


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



Special Thanks to

Mark Davis

[email protected]

410.244.4436

Karen Stiltner

[email protected]

410.244.4927

Overview of Keanes

Unclaimed Property Services

for the Banking Industry


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


The Perfect Timeline


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


Account Retention & Escheat Reduction


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


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.


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.


Contact Information

Michael J. Ryan

[email protected]

646.770.9205


Documents

Keane FMS 9-17-2013 - FMS Maryland - Home Pagefmsmdchapter.org/images/downloads/keane_fms_9_17_2013.pdf · Who is Keane? • The Unclaimed Property Partner of M&T Bank • Leader