Each year in the United States, billions of dollars are escheated to state governments as unclaimed property. The total value of escheated properties in state unclaimed property custody may well exceed $50 billion, with less than 50% likely ever to be reunited with the rightful owner. Even more unclaimed property sits dormant at other government agencies, counties, and municipalities.
There are many factors that can contribute to the possibility that amounts owed to your organization are lost. Examples include: a company may have moved locations, changed their process or contact point for payment receipt, have a history of mergers/acquisitions, name changes, extensive business-to-business dealings, or a check could have been 'lost' in the mail.
It is important to note that unclaimed property can be funds held by a state/jurisdiction resulting from statutory escheat requirements or they can be outstanding balances held by a government entity that will never be escheated. In today’s tough business environment, there is no better time to search for amounts owed and provide some much needed cashflow to your organization. While the Covid-19 pandemic has affected corporate America, it has also affected state governments and other entities that may hold unclaimed property. States and other government units are working from home and many are leaning on their online portals for claim submission and review. Approvals are still being sent for claims, but overall claims review and physical check mailings have all been delayed.
Notwithstanding these issues, you should still have an asset recovery program and attempt to recover potential property belonging to you. If you don’t have an in-house program, or the current business environment has affected your existing program, consider partnering with a specialist in this area, such as MarketSphere, who can work with you to locate your assets.
For more information, download this free white paper: “Corporate Asset Recovery – A Guide To Uncovering & Recovering Unclaimed Funds”. This and many other free resources can be found in the Knowledge Vault and Contact Us if you have if you have recovery or any unclaimed property compliance challenges. MarketSphere provides Just Right Compliance® services partnering with organizations to implement and maintain healthy escheat compliance programs.