Delaware Administrative Code Title 12 - Unclaimed Property
Delaware Administrative Code – Title 12: Unclaimed Property
Title 12 of the Delaware Administrative Code, specifically under the Delaware Unclaimed Property Law, governs the identification, reporting, remittance, and claiming of unclaimed or abandoned property. This title is implemented and enforced primarily by the Delaware Department of Finance, Office of Unclaimed Property.
Delaware is known for its detailed and rigorous unclaimed property statutes, particularly because many corporations are incorporated in the state.
🔑 Key Components of Title 12 – Unclaimed Property:
1. Definitions and Scope (§ 1101 et seq.)
Defines unclaimed property as intangible or tangible property held by a business or government entity (a “holder”) that has remained unclaimed by the rightful owner for a period of time (called a "dormancy period").
Includes property types such as:
Uncashed checks
Unredeemed gift certificates
Bank accounts
Insurance proceeds
Securities
Wages or payroll
2. Reporting Requirements (§ 1141–§ 1156)
Holders must file an annual report of unclaimed property with the Delaware Secretary of State or Department of Finance.
Reports must include:
Owner names, addresses, and identifying information
Type and value of property
Date of last owner activity
3. Due Diligence (§ 1142)
Before reporting, holders must attempt to contact owners through a written notice if the value exceeds a certain threshold (e.g., $50).
4. Dormancy Periods
Varies by property type, typically 3 to 5 years.
Wages: 1 year
Checking/savings accounts: 5 years
Uncashed checks: 3 to 5 years
5. Escheatment Process
After the dormancy period and proper reporting, the property is transferred ("escheated") to the state.
Delaware then assumes custody until the rightful owner claims it.
6. Audits and Enforcement (§ 1170–§ 1176)
Delaware conducts regular unclaimed property audits, often with the assistance of third-party auditors.
Entities may be selected for audits dating back many years.
Penalties may be imposed for late reporting or noncompliance.
7. Voluntary Disclosure Agreement (VDA) Program
Businesses may enter a VDA program with the Secretary of State to voluntarily report unclaimed property and avoid audits and penalties.
8. Owner Claims (§ 1201–§ 1208)
Owners (or heirs) can claim property at any time—Delaware does not have a statute of limitations on owner claims.
Claims can be filed online at: https://unclaimedproperty.delaware.gov
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