Massachusetts Escheat and Unclaimed Property Laws
| State | Reporting Period | Deadline | Due Diligence | Negative Report | Voluntary Disclosure Agreement | Reporting Method | Remittance Method | More Information |
|---|---|---|---|---|---|---|---|---|
| Massachusetts | Life Insurance: January 1 to December 31 Non Life Insurance: July 1 to June 30 | Life Insurance: Before May 1 Non Life Insurance: Before November 1 | $100 minimum, written notice to last known address at least 60 days prior to report filing, first class mail. | Required | Available | Electronic only, NAUPA II format, file extension: .txt, .hrs, or .rpt, submitted through online portal. Manual entry also available on the online portal. | Funds: Wire, ACH Credit Securities: DTC | Massachusetts Unclaimed Property |
The current statutes that govern unclaimed property in Massachusetts can be found here along with the Holder Manual. Massachusetts has not enacted the 2016 Revised Uniform Unclaimed Property Act (RUUPA).
Massachusetts Unclaimed Property Reporting Period
The annual reporting period for unclaimed property in Massachusetts is January 1 to December 31 for Life Insurance companies and July 1 to June 30 for Non Life Insurance companies.
Massachusetts 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 $100, written notice must be sent to the owners last known address at least 60 days days before the unclaimed property report is filed. Keep records to prove that due diligence was completed including whether mail was returned as undeliverable.
Massachusetts Unclaimed Property Reporting and Remittance Deadline
Annual reports and remittances are due before May 1 for Life Insurance companies and before November 1 for Non Life Insurance companies.
Massachusetts Unclaimed Property Reporting Format
Reports must be electronic only and 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.
Massachusetts Unclaimed Property Reporting and Remittance Method
Reports can be submitted on on the state portal. Funds can be transferred online, through Wire or ACH Credit. Securities can be transferred through Depository Trust Company (DTC).
Massachusetts 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. Massachusetts requires negative reports.
Massachusetts 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. Massachusetts does have a VDA program.
Massachusetts Unclaimed Property Dormancy Periods
Dormancy periods for unclaimed property in the state of Massachusetts vary, refer to the state dormancy period in the Holder Manual. Some common property types are as follows: Wages, Payroll, Salary (3 years), Safe Deposit Boxes (7 years), Traveler’s Checks (15 years).
More information from the state of Massachusetts 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.