Michigan

Michigan’s unclaimed property program is administered by the Department of Treasury under the Uniform Unclaimed Property Act. Whether you’re managing dormant accounts or uncashed checks, staying compliant requires a proactive, accurate, and timely approach.

Overview of Michigan’s Unclaimed Property Laws

The Michigan Uniform Unclaimed Property Act requires businesses and financial institutions, also known as “holders,” to report specific types of property that have been abandoned or unclaimed for a set period of time. This typically includes:

• Checking and savings accounts
• Uncashed payroll or vendor checks
• Insurance proceeds
• Securities and dividends
• Customer refunds and deposits
• Safe deposit box contents

Once property meets the dormancy threshold, holders must attempt to contact the rightful owner (due diligence) and then report it to the state.

Michigan Dormancy Periods

Understanding dormancy timelines is essential to timely reporting. In Michigan, dormancy periods vary by property type. Below are the most common timelines and property codes:

Note: Michigan’s record retention laws require maintaining clear records for at least 10 years to demonstrate compliance.

Due Diligence Requirements in Michigan

Before submitting your unclaimed property report, Michigan law requires holders to make a good-faith effort to locate the owner. This step protects your institution and helps reunite customers with their assets.

Minimum due diligence requirements include:

• Sending a written notice (usually by first-class mail) to the owner’s last known address no less than 60 days and no more than 365 days before filing the report, for property valued at $50 or more.
  
• While not required by law, additional outreach methods such as email or phone calls are recommended to strengthen compliance documentation, if allowed.

Michigan Reporting Deadlines and Requirements

Michigan follows a clear annual reporting schedule:

• Report Period: April 1 - March 31
• Deadline to File and Remit: July 1

Reports must be filed electronically via Michigan’s Treasury Online platform in NAUPA II format. Unlike some states, Michigan generally does not require negative (zero) reports unless specifically requested.

Michigan’s Voluntary Disclosure Program

Fallen behind on reporting? Michigan offers a Voluntary Disclosure Agreement (VDA) program that allows businesses to come into compliance without penalties or interest.

Participants must review past records and agree to file accurate unclaimed property reports for the current year and the previous four reporting years. All reports and payments must be submitted within six months of filing the VDA form with the Unclaimed Property division.

How Eisen Helps You Stay Compliant in Michigan

At Eisen, we make the Michigan escheatment process simpler, faster, and more reliable. Our platform streamlines every step of compliance, from identifying dormant assets to preparing and submitting final reports.

• Escheatment Manager: Automatically identifies eligible property, tracks Michigan dormancy periods, and creates ready-to-file reports.
• Outreach Manager: Sends and documents due diligence notices, reducing audit risk and increasing successful owner recontacts.
• Disbursement Manager: Handles secure, auditable payments through checks, ACH, and wire transfers.

Turn Michigan Compliance Into a Strength

Staying compliant with Michigan’s escheatment laws doesn’t have to be burdensome. With Eisen, you can reduce regulatory risk, avoid penalties, and deliver a better experience for your customers, all while staying audit-ready.