What is Unclaimed Property and Why Does it Matter to Your Business?

Every state in the U.S. has some form of an unclaimed property law (“UPL”).  State UPLs generally require businesses that are holding property due and owing to another (i.e. usually money) to hand over that property to the appropriate state government if the business loses contact with the owner for a statutory period known as a “dormancy period.” Dormancy periods for various property types range from 1 to 7 years. So, if businesses are obligated to comply with state UPLs in situations where they are holding property that is due and owing to another, why is it that so many businesses have never heard of unclaimed property or filed an unclaimed property report?