Industry News

<- Back

Delaware's Unclaimed Property Audit Practices Under Review

Delaware’s unclaimed auditing practices are under review after the state settled a high-profile lawsuit with Temple-Inland involving the company’s abandoned property.

Although the lawsuit was resolved, there are issues that Delaware needs to address. The state plans to make some adjustments to its audit practices, including shortening the “lookback” period and informing companies they will need to keep detailed property records.

The state officials are conducting an in-depth evaluation of the state’s escheat policies and procedures, with the objective to improve the program going forward. In the interim, the department plans to continue performing audits and resolving pending examinations on a case by case basis.

Regardless of the changes to state’s escheat policies, the officials might not be able to prevent the state from losing some proceeds. Because more than 1 million companies are incorporated in Delaware due its friendly laws, a large portion of the state’s budget comes from unclaimed property, used primarily to fund services and program.

Click here to learn more.

<- Back