WHOSE MONEY IS IT?
Unclaimed Property in Nebraska and the Rights of the True Owners
New legislation in Nebraska amended the State’s unclaimed property law section – Notice to Owners of Abandoned Property. Currently, the State Treasurer is required to annually publish the names of unclaimed property owners in an English language legal newspaper of general circulation affording owners the opportunity to claim their lost assets.
This is a stark reminder that unclaimed property is not a tax and the assets held by the states do not belong to the states.
The State’s Role as Custodian
Companies that are required to report and remit unclaimed property do so for assets with no owner contact over a defined dormancy period. Upon receipt of the funds, the states act as custodians or fiduciaries, safeguarding these funds in perpetuity for the rightful owners.
That being said, the states also have a statutory duty to find the owners and reunite them with their property. In addition to the long-standing statutory requirement to publish the names of lost owners in local newspapers, the majority of states in an age of technology also list the names on their websites as well as websites with a broader reach, where the general public can search to determine if unclaimed assets are held by any state in their names.
What Nebraska’s New Law Changes
Nebraska’s updated legislation strengthens owner protections and awareness:
- The annual Notice to Owners must now include instructions on how to search for unclaimed property; and
- Professional or commercial locators are prohibited from charging a fee until 24 months after names are published, protecting owners from premature or unnecessary fees.
These provisions are designed to make it easier for individuals to locate and reclaim property, while reinforcing the owners’ rights to their funds.
Why States Remain Aggressive
While unclaimed property is not a tax and is not owned by the states, the states enjoy the beneficial use of the unpaid funds, which continue to drive the states’ aggressive audit and compliance enforcement in this area. For many states, unclaimed property is a means to increase revenues without raising taxes.
Need Help with Unclaimed Property Compliance?
For support with unclaimed property audits, self-reviews, risk assessments, or to understand the impact of non-compliance or incomplete compliance on a company’s financials, contact Clarus Partners or reach out directly to:
Sonia Walwyn, Partner
📧 swalwyn@claruspartners.com
📞 (630) 216-9954
Sonia is ready to share her over 30 years of UP experience with you.
Sonia Walwyn and our expert team can assess your company’s unclaimed property risk, help you manage the risk, and assist with ensuring timely and accurate compliance prospectively.