Delaware Senate Passes Reforms To State Unclaimed Property Audit Process

Delaware, like most states, requires that certain types of unclaimed property be reported and turned over to the State. Delaware's unclaimed property administrator, as in other states, has the power to "examine the records" of businesses—either directly, or through the use of private-sector audit firms—to ensure compliance. This audit process has engendered controversy in recent years, and the Delaware Senate has been working on significant reforms. Although geographically small, Delaware is a heavyweight in forming policy in this area for one simple reason: Delaware is the state of incorporation for a large majority of American companies, and when the rightful owner's address is unknown, unclaimed property must be reported to the state where the company holding it is incorporated.