You are here: Home / Escheatment Escheatment Abandoned Property Background of the Regulation: Escheatment is a US regulation requiring financial institutions to send abandoned property to the state after a certain period. The regulation varies by financial instrument & state but is typically between 3 & 5 years after the account’s last activity. Typically the regulation requires financial institutions to document all attempts to reach the client with a final 30 day notice required before the mandated escheatment to the state. Challenges of Complying with the Regulation: Financial institutions are facing increasing pressure to promptly transfer unclaimed assets to the states. Failure to do so can result in the institution paying substantial interest charges & penalties. Accurate abandoned property data collection, documentation and client notification are the primary challenges confronting large institutions in the escheatment process. Additionally, effective Jan. 1, 2020, institutions are required to withhold the 10% tax on non-periodic designated distributions that have become unclaimed and subject to escheatment using IRS Form 1099-R prior to remittance to the state, if the owner of the IRA account did not make a withholding election. The Solution: The Meritsoft Escheatment module is specifically designed to: provide firms with a robust audit trail of all historical data collection and client contact Provide a Rules-based and flexible solution comply with various state regulations client notification and communication Address specific operational needs by easily adding on modules: Manage payments, postings, P&L calculations and SSIs. Modules can be purchased separately or added as your business needs grow. View FINBOS Get set up quickly The Escheatment functionality is a stand-alone module of Claim Manager. Like Claim Manager, the module is an out of the box solution, which is adaptable and can be implemented quickly. This means in no time your Escheatment obligations will be automatically captured and processed, so you can concentrate on your core business activities. Trouble free maintenance Escheatment utilises existing feeds/data. Furthermore it can be administered and supported by non-IT professionals. This means you are guaranteed trouble free maintenance and IT resources will not be burdened. Have Questions? To learn more about our Escheatment please Contact Us now. Follow Meritsoft’s continued progress Join the list of capital markets experts who benefit from Meritsoft knowledge and advice as soon as it’s published Follow us on Linkedin Meritsoft Company Visit the Meritsoft Linkedin Company page to learn about forthcoming updates Learn how operations benefit from FINBOS The award winning platform from Meritsoft Contact Meritsoft or visit our Case Studies More from Meritsoft Contact Meritsoft to find out about software solutions for MiFID II, 305c, FTT, 871m and more Terms & Conditions Privacy Notice Disclaimer Copyright Awards 2014 & 2015 Entrepreneur of the Year Products FINBOS Platform 871m Tax Manager MiFID II / Research Claim Manager 305c Tax Manager Financial Transaction Tax Manager Company About Case Studies Contact Address Dublin (Head Office) Eagle House, 16 Wentworth, Eblana Villas, Dublin, D02 HV08, Ireland Tel: +353 (1) 676 6311 Address London 4th Floor, Block A, 6/7 St Cross Street, London, EC1N 8UB, United Kingdom Tel: +44 (203) 865 4641 New York 55 Hudson Yards, 26th Floor, New York, NY 10001, United States Tel: +1 (914) 306 3572 © Copyright Meritsoft 2020, Terms & Conditions