Alabama Escheat and Unclaimed Property Laws
| State | Reporting Period | Deadline | Due Diligence | Negative Report | Voluntary Disclosure Agreement | Reporting Method | Remittance Method | More Information |
|---|---|---|---|---|---|---|---|---|
| Alabama | July 1 to June 30 | Before November 1 | $50 minimum, written notice to last known address at least 60 days before filing report | Not Required | Available | Electronic only, NAUPA II format, file extension: .txt, .hrs, or .rpt, submitted through diskette, CD, FTP (online) upload or email | Funds: ACH or Wire Securities: DTC, DRS or DWAC | Alabama Unclaimed Property |
The Uniform Disposition of Unclaimed Property Act of 2004 is the current law that governs unclaimed property in the state of Alabama and is accompanied by the Alabama Unclaimed Property Program Rules. Alabama has not yet enacted the 2016 Revised Uniform Unclaimed Property Act (RUUPA).
Alabama Unclaimed Property Reporting Period
The annual reporting period for unclaimed property in Alabama is July 1st – June 30th.
Alabama Unclaimed Property Due Diligence Requirements
Holders of unclaimed property must perform due diligence to show that they attempted to find the rightful owner of unclaimed property. For any balance greater than $50, written notice must be sent to the owners last known address at least 60 days before the unclaimed property report is filed. Keep records to prove that due diligence was completed including whether mail was returned as undeliverable.
Alabama Unclaimed Property Reporting and Remittance Deadline
Annual reports and remittances are due before November 1.
Alabama Unclaimed Property Reporting Format
Only electronic reports are accepted in the NAUPA II file format. File formats accepted are .txt, .hrs and .rpt. These formats can be generated through the HRS Pro software. The HRS Pro software has a limited free version that has restrictions including one user, one company and less than 100 properties per state report.
Alabama Unclaimed Property Reporting and Remittance Method
Reports can be sent physically on diskette or CD and virtually through online File Transfer Protocol (FTP) upload or email. Funds can be transferred through Automated Clearing House (ACH) or wire transfer. Securities can be transferred through Depository Trust Company (DTC), Direct Registration System (DRS) or Deposit / Withdrawal At Custodian (DWAC). Unclaimed property reports for the state of Alabama can be submitted here.
Alabama Unclaimed Property Negative Reports
Negative reports refer to reports that need to be filed when there is no unclaimed property to report or remit to the state for the year. Alabama does not require negative reports.
Alabama Unclaimed Property Voluntary Disclosure Agreement (VDA)
In some states, the unclaimed property Voluntary Disclosure Agreement (VDA) provides the opportunity for holders of unclaimed property to voluntarily report and remit past unclaimed property. If accepted by the state, the holder is then exempt from fines and penalties that cover the VDA period. The holder is expected to maintain strict compliance with state unclaimed property laws after the VDA period. VDAs are usually available on a one-time basis only to holders that are not already under state audit. Alabama does have a VDA program. Details about this program can be found here.
Alabama Unclaimed Property Dormancy Periods
| Property Type | Dormancy Period (Years) |
|---|---|
| Certificates of Deposit | 3 |
| Checking Accounts | 3 |
| Credit Memos | 1 |
| Debt (Government Bonds) | 3 |
| Debt (Private Bonds) | 3 |
| Demutualization (Funds / Securities) | 2 |
| Dissolution / Liquidation | 1 |
| Dividends | 3 |
| Federal Courts / Agencies | 1 |
| Fiduciaries | 3 |
| Gift Certificates | 3 |
| Insuarance Proceeds | 3 |
| IRA Keogh | 3 |
| Life Insurance Matured | 3 |
| Mineral Proceeds | 3 |
| Money Orders | 5 |
| Official Bank Checks | 3 |
| Safe Deposit Boxes | 3 |
| Savings Accounts | 3 |
| Securities | 3 |
| State Courts / Agencies | 1 |
| Travelers Checks | 15 |
| Utility Deposits / Refunds | 1 |
| Vendor Payments | 3 |
| Wages | 1 |
| All Other Property | 3 |
More information from the state of Alabama on unclaimed property reporting can be found here. Join our growing network of businesses that are using the Escheatify HolderExchange to prevent escheatment by reconciling their pre-escheat unclaimed property. Contact us to learn more.