Michigan Escheat and Unclaimed Property Laws
| State | Reporting Period | Deadline | Due Diligence | Negative Report | Voluntary Disclosure Agreement | Reporting Method | Remittance Method | More Information |
|---|---|---|---|---|---|---|---|---|
| Michigan | April 1 to March 31 | Before July 1 | $50 minimum, written notice to last known address 60 to 365 days prior to report filing | Required for entities incorporated, domiciled or with strong business presence in Michigan | Available | 10 or fewer properties may be submitted using manual forms. Electronic reports must be in NAUPA II format, file extension: .txt, .hrs or .rpt. and submitted online. Manual entry also available on the online portal. | Funds: ACH Debit, Check Securities: DTC, DRS or DWAC | Michigan Unclaimed Property |
The current statutes that govern unclaimed property in Michigan can be found here along with the Manual for Reporting Unclaimed Property. Michigan has not enacted the 2016 Revised Uniform Unclaimed Property Act (RUUPA).
Michigan Unclaimed Property Reporting Period
The annual reporting period for unclaimed property in Michigan is April 1 to March 31.
Michigan 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 60 to 365 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.
Michigan Unclaimed Property Reporting and Remittance Deadline
Annual reports and remittances are due before July 1.
Michigan Unclaimed Property Reporting Format
10 or fewer properties can be reported by paper. Other reports must be electronic 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.
Michigan Unclaimed Property Reporting and Remittance Method
Reports can be submitted on on the state portal. Funds can be transferred online, through ACH Debit or Check. Securities can be transferred through Depository Trust Company (DTC), Direct Registration System (DRS) or Deposit / Withdrawal At Custodian (DWAC).
Michigan 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. Michigan requires negative reports for entities incorporated, domiciled or with a strong business presence in Michigan.
Michigan 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. Michigan does have a VDA program.
Michigan Unclaimed Property Dormancy Periods
Dormancy periods for unclaimed property in the state of Michigan vary, refer to the state dormancy period in the Manual for Reporting Unclaimed Property.
More information from the state of Michigan 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.