InfoBytes Blog

States Challenge Delaware Law on Unclaimed Property

A group of 27 states, led by Arkansas and Texas, is seeking leave to file a complaint with the U.S. Supreme Court to challenge Delaware’s unclaimed property laws. The states’ challenge centers on a Delaware escheat law through which the state claims ownership of certain types of financial accounts and securities if the owner has failed to claim them for three years, and the issuer or holder is incorporated in Delaware. The dispute, although broad in implications, addresses a specific situation whereby a money transfer company was directed to provide all unpresented and uncashed money transfers to Delaware Escheator, and not to the states where the transfers were originated. The states claim that the Delaware law is in contravention to the federal Disposition of Abandoned Money Orders and Traveler’s Checks Act.

Unclaimed Property