Delaware

At Eisen, we are committed to making the process clear, manageable, and effective for you. Here is what you need to know about Delaware escheatment laws and how Eisen can help you stay compliant with confidence.

Delaware Escheatment Law Overview

Delaware’s unclaimed property program is governed by the Delaware Escheats Law, codified in Title 12, Chapter 11 of the Delaware Code. Administered by the Delaware Department of Finance’s Office of Unclaimed Property, the state’s escheatment rules apply broadly across industries and asset types.

Unlike many states, Delaware does not require proof of the owner's last known address to claim jurisdiction. If a business is incorporated in Delaware and the owner’s address is unknown, the property defaults to Delaware.

Dormancy Periods in Delaware

The dormancy periods in Delaware vary based on the property type and triggering event:

‍Quick note: In Delaware, the "triggering event" is typically the absence of owner activity within the dormancy period. If no contact is made and no written, electronic, or verbal communication is documented, the asset is presumed abandoned.

Due Diligence Requirements

Before reporting property as unclaimed, Delaware requires holders to attempt to notify the owner through due diligence efforts.

For property valued at $50 or more, a written notice must be sent no less than 60 days before filing the annual report. For securities, there is no minimum property value for the due diligence requirement. The notice must alert the owner that the property will be transferred to the state if they do not contact the holder.

Strong documentation of due diligence efforts is critical, especially given Delaware’s active audit and enforcement environment.

Reporting Requirements and Deadlines

Delaware’s reporting cycle is straightforward for most corporations, but slightly different for banking organizations:

• Report Period: Calendar year (January 1 to December 31), or for Banking organizations (July 1 to June 30)
• Filing Deadline: March 1 of the following year, or November 10 for Banking organizations

All reports must be filed electronically, regardless of the number of items being reported. Along with the report, holders must remit any unclaimed property funds directly to the state.

Even if your business holds no unclaimed property, Delaware encourages you to file a negative (zero) report.

Delaware Voluntary Disclosure Agreements

Delaware uses unclaimed property audits to assess compliance and enforce its laws. To encourage organizations to come forward, Delaware offers a Voluntary Disclosure Agreement (VDA) process. This allows companies to report past-due property and, in return, receive a waiver for penalties and interest that typically come with late reporting discovered during an audit.

How Eisen Helps You Stay Compliant in Delaware

Simplify your escheatment process with Eisen’s comprehensive solutions. Our connected suite of tools helps you manage every stage of compliance, from outreach to remittance:

• Escheatment Manager: Automate your unclaimed property reporting with ease. Eisen’s Escheatment Manager streamlines identification, due diligence, and reporting, minimizing manual efforts and ensuring full compliance with Delaware’s stringent rules.
• Disbursement Manager: Facilitate efficient remittance of unclaimed property to Delaware’s Office of Unclaimed Property. Our Disbursement Manager simplifies payments, reduces administrative burden, and helps you meet critical deadlines with confidence.
• Outreach Manager: Enhance your due diligence process with the Outreach Manager. Engage owners through automated communications, increasing the chance of reconnecting them with their property and strengthening your institution’s commitment to stewardship.

At Eisen, we believe compliance should not feel overwhelming. It should feel achievable and empowering. With our solutions at your side, you can approach Delaware’s escheatment process with clarity, precision, and peace of mind.