In recent years, states have become more and more aggressive in pursuing unclaimed property as a means of increasing revenue without increasing taxes. States have enacted and modified unclaimed property legislation expanding the scope of what constitutes escheatable property, shortening applicable holding periods and intensifying audit efforts. Heightened attention on unclaimed property has resulted in litigation among various states, holders, and owners of unclaimed property, all seeking to determine their respective rights and obligations under various states’ unclaimed property laws. Recent developments in unclaimed property litigation suggest that courts are beginning to question the states’ aggressive tactics by scrutinizing states’ reporting, notification, and classification rules in ways which may benefit the holder community.
To learn more about these recent developments in unclaimed property litigation, please read the GT Alert.