Unclaimed Property Reciprocity Agreement

There is also an increased risk that the owner will not re-enter the mutually declared land. States cannot send notifications, advertise or make efforts to locate owners of non-state property. This process was initiated at a time when we do not have computers and online databases to optimize the reporting process. The willingness of a state to transfer real estate to another state has not only provided comfort to homeowners, but also the ability for people with small amounts of real estate to report to only one state. The excessive time spent developing paper reports for several states does not appear to correspond to the weight of the small amounts of real estate that required a report. 2. The laws of the other state mutually provide that a similar specific property is not abandoned or owned by the other state when it is considered, due or due to an owner whose last known address is in that state, by an owner under the jurisdiction of that state. [1957 v.670 No 12; 1983 c.716 No 8] Despite all the reasons that do not apply to reciprocal relationships, there are still limited reasons for using them. One of the initial reasons for mutual declaration is the main reason why it is used today: to declare small amounts of property if that is all a company has to declare. If something goes wrong, the risk of additional penalties is low. If a company owns large amounts of unclaimed property, it is less advisable to use reciprocal relationships, even for small reciprocal amounts.

Larger amounts of unreported assets could be compromised in relation to misreported reciprocal amounts. Mistakes in mutual relations may suddenly be able to put a negative holder on a state`s radar – and this could trigger a review. Note that even if you declare ownership of several states through a single state, ownership must still be declared on the basis of state law. This means that you must continue to take into account several detention times, due diligence requirements and aggregate amounts. The combination of real estate for spring and autumn countries also means that you must be careful on different reference dates (i.e. June 30, December 31, March 31). Ownership can also be exchanged through informal arrangements of courtesy between states, which means that the state`s willingness to pool can change each year.

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