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A Changing Landscape In Escheatment

A Changing Landscape In Escheatment. Presented By: Jerry O’Leary Unclaimed Property Recovery & Reporting, LLC May 20, 2010. Introduction. “Once Upon a Time” escheatment was a relatively benign process: Eligible Owners & Assets were Identified Due Diligence Property Delivered

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A Changing Landscape In Escheatment

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  1. A Changing LandscapeIn Escheatment Presented By: Jerry O’Leary Unclaimed Property Recovery & Reporting, LLC May 20, 2010

  2. Introduction “Once Upon a Time” escheatment was a relatively benign process: Eligible Owners & Assets were Identified Due Diligence Property Delivered Indemnification Provided Custody Claims Honored

  3. States Need Money Economic Turndown Non Tax Revenue Unclaimed Property Decreased Dormancy Periods Delaware Utah Indiana Arizona

  4. States Need Money Engagement of Auditors Contingency Fees Aggressive Interpretation GRNI Due Diligence Process Inconsistent Significant Changes Florida Iowa

  5. The Robin Hood Factor Court Decisions Vondjidis v. Hewlett Packard Corp. Strict compliance Immunity = No knowledge Purpose is reunification Absolute immunity - irrelevant Azure Limited v. I-FlowStrict compliance Immunity from liability Comply with all other provisions

  6. The Robin Hood Factor Taylor v. Westly Unclaimed Property Statute - unconstitutional California Assembly Bill 1291 Section 1560 “Reasonable Effort”

  7. How’s Your Annuity Plan and IRA? Are they escheatable? Provisions in state statutes Projected IRA Eligibility Calculation Birthday : June, 30, 1945 RMD : December 31, 2015 Reportable : June 30, 2018 Due to State : November 1, 2018

  8. How’s Your Annuity Plan and IRA? Dormancy Period RMD @ 70/12 Custodian/Trustee Notification Requirement Multiple Investments Notify Custodian/Trustee

  9. Perfect Storm Appetite for Non-tax revenues Court decisions Audit process employed Changes to Due Diligence Loss of immunity/indemnification No longer a safe harbor

  10. A Higher Standard Reduce and eliminate your risk Compliance is burdensome and expensive Location is the key

  11. Some Pushback American Express v. Hollenbach Shortening abandonment period Staples, Inc. v. Delaware Audit firm estimates Exceeding audit scope McKesson v. Cook (Delaware) GRNI

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