On June 27, 2019 Maine enacted S 481; an Act to enact the Maine Revised Unclaimed Property Act.  Inspired by the Revised Uniform Unclaimed Property Act (RUUPA) of 2016, Maine S 481 overhauls the previous unclaimed property act. The Act takes effect October 1, 2019. 

Most of the Maine Revised Unclaimed Property Act is consistent with RUUPA however there are some deviations that holders should be aware of. 

The below list of law changes is not all inclusive and holders should review the Act in detail. 

Definitions

The following is a list of definitions that have been either added or revised:

Added:

  • Administrator's agent
  • Confidential information
  • Electronic
  • E-mail
  • Game-related digital content
  • Loyalty obligation
  • Municipal bond
  • Net obligation value
  • Nonfreely transferable security
  • Payroll card
  • Putative holder
  • Security
  • Worthless Security

Revised:

  • Domicile
  • Gift obligation
  • Owner
  • Person
  • Property
  • Record
  • Stored-value obligation

Presumption of Abandonment

Insurance and annuity contracts

Under the current Maine law, the presumption of abandonment is 3 years after the obligation to pay arose, or in the case of a policy or annuity payable up on proof of death, 3 years after the insured has attained, or would have attained if living, the limiting age under the mortality table on which the reserve is based.

The new law clarifies that presumption of abandonment is still 3 years after the obligation to pay arose under the terms of the policy or contract.  However, if the policy or contract has not matured by proof of the death of the insured or annuitant: a life or endowment policy is presumed abandoned 3 years after the earlier of; 1) the date the holder has knowledge of death of the insured and 2) the date the holder has attained or would have attained if living, the limiting age under the mortality table on which the reserve for the policy is based. In the case of an annuity contract, the presumption of abandonment is 3 years after the date the holder has knowledge of the death of the owner.

Prearranged funeral or burial plan

Maine added a provision for property in a prearranged funeral or burial plan described in Title 32, section 1401, including deposits containing funds from such a plan which are presumed abandoned 3 years after the date of death.   

Tax-deferred retirement accounts

Maine is updating their presumption of abandonment to include the RPO component consistent with the RUUPA.  Therefore, going forward the presumption of abandonment for tax-deferred accounts will be 3 years from the second RPO (as long as it was sent within 30 days of the first RPO) and the owner must have reached the age of 70.5.  If the owner is deceased and the plan requires distribution to avoid a tax penalty, presumption is the date the holder receives confirmation of death in the ordinary course of its business or confirms death.

The new law also requires holder outreach if notice or an indication of death is received.  The holder shall attempt to confirm whether the owner is deceased no later than 90 days. Additionally, if the holder does not send communications to the owner by first class mail at least on an annual basis, the holder shall attempt to confirm the owner's interest in the property by sending the owner an email no later than 2 years from the owner's last indication of interest in the property.  The statute also provides protocols for emails that are not received or responded to. 

Other tax-deferred accounts

Maine added the RUUPA provision for other tax-deferred accounts but also extended the provision to deceased owners. 

For living owners, the presumption of abandonment is 3 years after the earlier of the date specified in the income tax laws and regulations of the U.S. by which distribution of the property must begin to avoid a tax penalty, with no distribution having been made and 30 years after the date the account or plan was opened. 

For deceased owners, the presumption of abandonment is 2 years from the earliest of:

  • The date of the distribution or attempted distribution
  • The date of the required distribution as stated in the plan or trust agreement
  • The date, if determinable, specified in the income tax laws of the U.S. by which distribution of the property must begin to avoid a tax penalty.

Custodial account for minor

Uniform Gifts to Minors Act or Uniform Transfers to Minors Act is presumed abandoned 3 years after the later of the second RPO (as long as it was sent 30 days after the first RPO) and the date on which the custodian is required to transfer the property to the minor or the minor's estate in accordance with the UGMA or UTMA of the state in which the account was opened. 

The act also adopted outreach requirements for accounts that have been inactive for 2 years and do not receive first class mail on at least an annual basis as well as protocols for when the email outreach is not received or there is no response. 

Contents of safe deposit box

Tangible property and proceeds resulting from the sale of property permitted by other law are presumed abandoned 3 years after the expiration of the lease or rental period on the box or other depository.

Stored-value obligation

Under the new law, the amount presumed abandoned in a stored-value obligation is the net obligation value at the time it is presumed abandoned rather than 60% of the stored-value card's face value in the previous law.  Stored-value cards are presumed abandoned on the latest of 3 years after:

  • December 31st of the year in which the obligation is issued or additional funds are deposited
  • The most recent indication of interest in the obligation by the owner
  • A verification or review of the balance by or on behalf of the owner

Additional rules apply for period of limitation, charges or fees, and redemption of balance in cash.  See statute for full details. 

Gift obligation

Gift obligations are presumed abandoned 2 years after December 31st of the year in which the obligation arises or the most recent transaction involving the obligation occurs, whichever is later.  The amount unclaimed is 60% of the net obligation value at the time it is presumed abandoned.  Additional rules apply for the size of issuer, period of limitation for redemption, charges or fees, and redemption of balance in cash.  See statute for full details. 

Securities

Maine breaks their presumption of abandonment out between owners that have communications sent at least annually and owners that do not receive communications by first class U.S. mail; although they both have a 3 year dormancy period.

When communications are sent at least annually, the presumption of abandonment is 3 years after the second RPO date (as long as it is sent within 30 days of the first RPO).  When communications to the owner are not sent on at least an annual basis, the holder shall attempt to confirm the owner's interest in the security by sending an email no later than 2 years after the last indication of interest in the security.  The statute has specific protocols for when the e-mail is not received or the owner does not respond.  See statute for details. 

Indication of interest

Maine has expanded their indication of interest list to include oral communication by the owner and automatic reinvestment of dividends or interest.

Due diligence

Maine is expanding their due diligence window from 60 to 120 days to 60 to 180 days.  The aggregate value of $50 and exemption for a bad address will remain the same. 

If the owner has consented to receive e-mail delivery from the holder, due diligence letters must be sent both by first class mail and by e-mail unless the holders believes that the e-mail address is invalid.

Maine deviated from RUUPA by adding a new provision for holders of securities presumed abandoned under section 2062 (Tax-deferred retirement accounts), 2063 (Other tax-deferred accounts), and 2068 (securities).  These due diligence letters must be sent by certified mail no less than 60 days before the filing date for owners that have a valid address and whose property value is $1,000 or more.

Due diligence notice requirements are also outlined in the statute.

Disposal and recovery of securities

The administrator may not sell or otherwise liquidate a security until one year after the receipt of the security.

A person making a claim before the end of the one-year period is entitled to the proceeds of the sale of the securities or the market value at the time the claim is made, whichever is greater, plus dividends, interest and other increments up to the time the claim is made, less any deduction for expenses of the sale.  A person making a claim after the expiration of the one-year period is entitled to receive the securities delivered if the securities remain in the custody of the administrator, or the net proceeds received from the sale and is not entitled to receive any appreciation in the value of the property occurring after delivery to the administrator, except in the case of intentional misconduct.

Holders should review the full statute for complete details on the new Maine Revised Unclaimed Property Act. 


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