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Enforcement Among the multiple state-mandated responsibilities companies (“holders”) must adhere to, one category that is often overlooked is unclaimed property. All 50 states have unclaimed property laws and holders are required to submit unclaimed property reports to states annually. Reporting errors, gaps in reporting, and recent acquisitions/mergers may trigger states to pursue enforcement techniques. States deploy several methods to address compliance, including audits, Voluntary Disclosure Agreements (“VDA”), Compliance Reviews, Verified Reports, and Self-Audits. Holders must proactively develop detailed policies/procedures to avoid enforcement. When developing your compliance framework, consider how the changing legislature, dormancy periods, due diligence requirements, and reporting deadlines impact your business. Contact us if you need guidance in enhancing your compliance framework or have received communication from a state.

California just made unclaimed property history—and it could reshape how your business handles digital assets. With the signing of Senate Bill 822 , California became the first state in the U.S. to officially protect unclaimed cryptocurrency from forced liquidation  during the escheatment process. This is a game-changer for companies managing digital financial assets like Bitcoin  and Ethereum , and it raises important implications for all holders—especially those operating in multiple states. At Advisely LLC, we’re already helping clients understand and adapt to these new rules. Here’s what you need to know—and how to prepare. 🔍 What Is SB 822? SB 822 updates California’s Unclaimed Property Law (UPL)  to explicitly include digital financial assets  as a form of intangible property. This includes cryptocurrencies such as Bitcoin and Ethereum that are: Dormant for three years Owned by a person with a California-based address Subject to failed contact attempts Previously, ambiguity in the law left crypto in legal limbo—and created operational confusion for holders. Some custodians were converting crypto to cash before remitting it to the state, potentially creating taxable events  for the rightful owner and violating the spirit of escheatment laws. SB 822 changes all that. 💡 Key Highlights for Holders Here’s what businesses (aka “holders”) should know: 1. No More Forced Liquidation Holders must now transfer digital assets “as-is” —in their original form, including private keys—when reporting unclaimed crypto. Bitcoin and Ethereum cannot be converted to fiat currency  before escheatment. This minimizes tax exposure for the owner and aligns with how other intangible property types (like stocks or gift cards) are treated. 2. Pre-Escheatment Notice Still Applies Just like traditional unclaimed property, holders must send a due diligence notice  to the apparent owner 6–12 months before  reporting the property to the state. California now requires a Controller-approved form  for crypto notices. If the owner responds in time, the dormancy clock resets. If not, the asset is remitted—but securely, and without liquidation. 3. Licensed Custodians Only The bill requires that only state-licensed crypto custodians —authorized by the Department of Financial Protection and Innovation (DFPI) —can hold escheated digital assets on California’s behalf. This provision not only ensures better security for escheated crypto, but also signals to national and international regulators that California is approaching digital assets with both rigor and responsibility . 🌎 Why This Matters Beyond California Although SB 822 is a California-only law , it sets a powerful precedent  for other states—and for holders operating across jurisdictions. Several other states, including Michigan , Arizona , and Texas , are exploring crypto-specific escheatment policies. Businesses with customers or wallet holders in these states should expect similar rules to follow , particularly around asset preservation and due diligence requirements. 🧠 Advisely’s Take: What You Should Do Now If you’re a fintech, crypto platform, exchange, or any business holding customer crypto, here’s how Advisely can help you prepare: Audit Your Dormant Crypto Holdings Map out your crypto wallet activity and dormant thresholds to see which assets may be subject to escheatment under CA’s new rules. Update Your Due Diligence Process Ensure your owner outreach for digital assets follows California’s 6–12 month notice window , using the required formats. Don’t assume legacy templates are compliant. Review Your Escheatment Procedures If you’ve been converting crypto to cash prior to remitting it, stop . That may now violate CA law—and result in penalties or reputational risk. Plan for Multistate Expansion Even if your business isn’t based in California, your users might be. And other states are watching. Now’s the time to modernize your escheatment protocols  across all asset types—digital and traditional. 🏢 Let’s Talk — Especially If You're in Crypto or Fintech Based in Red Bank, NJ , Advisely LLC helps companies across the country navigate complex unclaimed property rules. From traditional A/P cleanups to cutting-edge crypto compliance, our team of former auditors and industry experts can help you reduce risk and stay ahead of regulation. 📌 Final Thoughts California’s SB 822 is more than a crypto law—it’s a wake-up call for holders of all unclaimed property  to revisit their compliance strategy. As states continue modernizing their laws, businesses need clear policies that align with evolving rules—especially for digital assets. Don’t wait until a notice arrives. Get ahead of it. 📧 Need help reviewing your crypto escheatment policies? Reach out to us at eburke@adviselyllc.com  or visit www.adviselyllc.com

On August 15, 2025, the Delaware Secretary of State issued another wave of invitations to companies to join its Unclaimed Property Voluntary Disclosure Agreement (VDA) Program . These notices are part of Delaware’s continued push to increase compliance and revenue through proactive enforcement. The implications are serious. Failure to respond within 90 days results in an automatic audit referral to the Department of Finance, effectively closing the door on the more favorable VDA option. Why the Delaware VDA Program Matters Delaware is known as the most aggressive state in unclaimed property enforcement. The VDA program offers businesses the chance to come forward voluntarily, resolve past-due property obligations, and avoid the significant costs and risks of audit. Ignoring or delaying a response to the August 15 invitations could expose companies to: Extended lookback periods   State-directed estimation techniques   Reputational harm Key Takeaways from the August 2025 Invitations 1. The invitation is mandatory A Delaware VDA notice is not a courtesy—it requires a formal response. Companies that fail to act within 90 days will be immediately placed in the state’s audit program, with no chance to return to the VDA track. 2. Delaware expects enterprise-wide compliance Even if the invitation was sent to one entity, Delaware’s position is clear: all Delaware-incorporated entities under the corporate umbrella should be reviewed. That includes dormant subsidiaries, discontinued business lines, or legacy accounts that may still carry risk 3. Verified reports are becoming a compliance test In addition to VDA invitations, Delaware continues to issue verified report notices . These require companies to affirm their annual unclaimed property compliance and provide copies of policies and procedures. Failure to comply—or an incomplete submission—can trigger immediate audit. 4. Unclaimed property hides in unexpected places Even if balances were written off years ago, Delaware considers them reportable during its lookback window. What Businesses Should Do Now With the August 15 notices in circulation, companies should immediately: Confirm receipt of a VDA invitation  and mark the 90-day deadline Evaluate all Delaware-incorporated entities , not just the one named in the letter Review historical records and write-offs  for potential exposure Establish or update internal compliance policies  to prepare for verified report requirements Engage experienced unclaimed property advisers  to navigate the process efficiently Advisely’s Perspective At Advisely, we’ve seen firsthand how costly Delaware audits can become when companies miss the VDA window. Conversely, the VDA program—when handled proactively—provides a cooperative path to compliance, with less disruption, lower liability, and a better relationship with regulators. The August 15 invitations represent both a warning and an opportunity . By acting now, companies can take control of their compliance strategy rather than leaving it to the state’s auditors. Final Thought If your company received a Delaware VDA invitation dated August 15, 2025, the clock is already ticking. The 90-day response period is critical. Don’t wait until Delaware takes the lead—this is the time to get ahead of enforcement, reduce risk, and create a lasting compliance framework. Advisely helps organizations nationwide navigate the VDA process, manage due diligence and reporting, and strengthen compliance programs for the future. Contact us today to discuss your strategy.

It may sound like an operational footnote, but mishandling unclaimed property obligations during an acquisition can result in years of inherited liabilities  that blindside even seasoned deal teams. Once the ink dries, that oversight can quickly translate into audits, penalties, and write-downs. What Is Unclaimed Property—and Why Should M&A Teams Care? Unclaimed property includes things like uncashed vendor payments, dormant customer balances, unredeemed refunds, and other financial obligations a business owes but hasn’t resolved. States treat these as public property and require holders to report and remit them after a certain period. The problem? These obligations rarely show up cleanly in financial statements, and their treatment varies widely by jurisdiction. That makes them a stealth liability —especially dangerous in M&A. Deal Structure Doesn’t Eliminate Risk It’s tempting to think you’re protected based on how a deal is structured, but that’s a risky assumption. In stock acquisitions , the buyer steps into the shoes of the seller—including unreported unclaimed property. In asset deals , buyers may believe they’re shielded—but that’s not always true. State laws and post-closing practices can still result in successor liability. Even where legal liability doesn’t transfer automatically, enforcement efforts by states have become more aggressive , and many pursue entities based on successor principles, corporate continuity, or indirect ownership. How to Spot Hidden Risk Find the answers to the following questions: Are there old credits sitting in receivables systems? Are disbursement accounts cluttered with outstanding checks or unreconciled items? Has the target ever been audited for unclaimed property? If not, why not? Do policies exist for aging, voiding, and remitting unclaimed funds? Has the company engaged third-party consultants or filed voluntary disclosures? Be Proactive If unclaimed property didn’t get much attention during due diligence, don’t let it fall off the radar post-close. The early integration period is your best chance to uncover hidden issues—while legacy systems and former staff are still accessible. A focused risk assessment right after closing can: Uncover previously unreported property Clarify compliance gaps Identify remediation paths or voluntary disclosure opportunities Addressing this early can prevent future audit disruption and reduce financial impact. Final Thoughts: Hidden Doesn’t Mean Harmless Unclaimed property won’t make headlines in a transaction announcement. But left unchecked, it can derail financial projections, damage relationships with states, and lead to years of audit defense. At Advisely, we help buyers and sellers navigate unclaimed property risk before and after deals close. Our approach combines technical compliance expertise with a practical understanding of the M&A process—ensuring your next acquisition doesn’t come with hidden baggage. In M&A, what you don’t see can hurt you. Let us help you find it—before the states do. Contact Eburke@adviselyllc.com today.

Delaware VDA Invitations Are Out – Here’s What You Need to Know The unclaimed property compliance landscape is shifting—and fast. States are becoming more aggressive and sophisticated in their outreach to businesses, utilizing multiple channels such as audits, voluntary disclosure agreements (VDAs), verified reports, and compliance reviews to enforce compliance. For businesses of all sizes, the question is no longer if  a state will reach out—it's when  and how . And the stakes are rising. Delaware: Time-Sensitive VDA Invitations Have Been Sent On April 11 , the State of Delaware began sending out a new wave of Unclaimed Property VDA invitations . If your company is incorporated in Delaware and receives one of these notices, you have only 90 days to respond . Failing to act could mean automatic referral for audit—an expensive and time-consuming process that often results in higher liabilities and interest penalties. Companies that do not have complete records for the past 15 years are especially vulnerable. These gaps can trigger assumptions of liability, even when no unclaimed property exists. Proactive Compliance = Reduced Risk Staying compliant isn’t just about reacting to state demands—it’s about being ready for them in advance. Businesses that proactively address unclaimed property obligations can: Prevent audits and costly penalties Reduce operational disruption Protect internal resources Build trust with state regulators How Advisely Can Help At Advisely , we specialize in helping businesses prepare for and respond to unclaimed property inquiries—with a strong focus on high-risk jurisdictions like Delaware. Whether you’ve received a VDA invitation, verified report request, compliance review notice, or simply want to assess your exposure before the state knocks on your door, our experts are here to guide you. We bring together: Deep experience in unclaimed property law Trusted relationships with state agencies and auditors A practical, business-minded approach to compliance Hands-on assistance throughout the VDA or audit process Take Action Now Unclaimed property compliance doesn’t have to be overwhelming. With the right guidance and preparation, your company can stay compliant, mitigate risk, and stay focused on growth. Connect with Advisely today  to protect your business from costly surprises and ensure smooth, strategic compliance.

The Importance of Unclaimed Property Compliance Unclaimed property generally refers to financial assets that are presumed to be abandoned after a certain period of inactivity, such as uncashed checks/wires, forgotten bank accounts, or customer credits. States require businesses to report and remit these properties to the state, typically on an annual basis. Failing to comply with these regulations can result in heavy fines, penalties, and interest, which can add up quickly and put a strain on your company’s finances. At Advisely, we understand the complexities of unclaimed property reporting and the challenges companies face in staying compliant. That’s why we offer a range of services designed to take the burden off your shoulders and ensure that your business remains in good standing with state regulations. How Advisely Can Help Annual Reporting Navigating the annual unclaimed property reporting requirements can be time-consuming and overwhelming. Advisely provides end-to-end assistance with the preparation and filing of annual unclaimed property reports, ensuring they are submitted accurately and on time, minimizing the risk of penalties and interest. Due Diligence and Owner Outreach Part of the reporting process involves reaching out to the rightful owners of unclaimed property. The state-mandated due diligence process  often requires specific verbiage and timelines. Advisely assists companies in conducting thorough due diligence using their proprietary methods that guarantee compliance with the applicable jurisdiction’s requirements. Our experienced team handles the owner outreach process efficiently, saving you both time and resources. Audit Defense If your company is selected for an audit by a state, the process can be overwhelming and costly. Advisely offers audit defense services to protect your business against aggressive audit practices. We represent you during audits and help resolve any disputes, ensuring the best possible outcome for your company. Voluntary Disclosure Agreements (VDAs) If your company has not been in compliance with unclaimed property laws in the past, a Voluntary Disclosure Agreement (VDA) can be an effective way to resolve any issues and avoid hefty penalties. Advisely helps businesses navigate the VDA process by negotiating favorable terms with states, reducing both the financial burden and potential legal risks associated with non-compliance. Corporate Asset Recovery Many companies may be unaware of valuable assets they are entitled to recover. Advisely assists businesses in identifying and recovering unclaimed property, ensuring that they do not miss out on assets that can benefit their bottom line. Why Choose Advisely? By partnering with Advisely for your unclaimed property consulting needs, you can save significant time and expense each year. Our team of experts ensures that all aspects of your unclaimed property compliance are handled with the utmost care, from reporting and due diligence to audit defense and asset recovery. With Advisely's support, you can focus on running your business while we take care of the complexities of unclaimed property compliance.   Contact Advisely to learn how we can help your business simplify unclaimed property compliance and avoid costly mistakes.

As the holiday season approaches, organizations should be vigilant with their mail. The next round of the Delaware unclaimed property Voluntary Disclosure Agreement (“VDA”) program invitations are scheduled to be mailed around November 15th, 2024. Businesses receiving these letters should take them seriously. Ignoring them could lead to significant risk. Understanding the Delaware VDA Program The Delaware VDA program is part of a broader system the state employs to enforce compliance with unclaimed property laws. These laws require businesses to report and return unclaimed property, such as inactive bank accounts, uncashed checks, or customer credits. The state has implemented various enforcement strategies, and the VDA program allows companies to voluntarily disclose unclaimed property while avoiding hefty penalties. Key Dates to Remember The VDA invitation letters will be mailed around November 15, 2024, with a 90-day window for response. Missing this deadline can trigger an unclaimed property audit, a situation that can have serious financial implications. Companies facing audits have seen interest and penalties reach up to 20% of the unclaimed property identified, alongside significant administrative headaches. Organizations that do not receive an invitation are still eligible to apply to the VDA program. Benefits of Participating in the VDA Program The advantages of enrolling in the VDA program are substantial: Reduced Liability: Companies that successfully complete the program receive a waiver of interest and penalties. Structured Resolution : The program offers a clear path to address unclaimed property issues. Businesses can engage directly with state officials and their auditors to resolve discrepancies more smoothly. However, it is essential to acknowledge that the VDA program may not suit every organization's needs. Conducting a thorough internal review is crucial to assess whether it aligns with specific business circumstances. Considerations Before Enrolling Before committing to the VDA program, businesses should evaluate their unclaimed property situations. Key considerations include: Historical Compliance : Review your company's record regarding unclaimed property laws. A history of non-compliance might attract more scrutiny during audits, making participation in the VDA essential. Legal Ramifications : Compliance regulations can evolve, affecting companies differently based on their structures. Joining the program can eliminate a company's ability to challenge Delaware's process. Seeking advice from unclaimed property compliance specialists can clarify potential impacts. Risks of Ignoring the Invitation Disregarding the invitation from the state about the VDA program can lead to severe consequences. Key risks include: Unclaimed Property Audit : Not responding within the designated period may prompt an audit. Financial Exposure : Failing to address unclaimed property can expose organizations to significant financial liabilities, particularly if overlooked properties come to light during an audit. How Advisely Can Help Navigating the complexities of unclaimed property laws is challenging. At Advisely, our professionals can assist you in understanding your options related to the VDA program. They bring significant experience and can help clarify the implications of various pathways for your organization. Managing unclaimed property obligations does not have to be overwhelming. With the correct strategies and expert support, businesses can ensure compliance and avoid unnecessary risks. Contact eburke@adviselyllc.com  for additional information.

Delaware changed its custodian for the reporting of securities to Wells Fargo Advisors. Any holders reporting and remitting securities to Delaware should follow the updated instructions that are available in the Holder Reporting Guide (page 40) ( https://unclaimedproperty.delaware.gov/docs/DE_Holder_Manual_2024.pdf) . Delaware provided the following reminders: Five days prior to delivery of securities, holders must e-mail their intent to deliver to Delaware’s custodian via an Excel Document containing the issue name, CUSIP, ticker symbol, number of shares, and the delivering party’s DTC participant number and/or delivering party’s information. Please email the Excel list to  Delawarecustody@kelmarassoc.com and escheat.holderquestions@delaware.gov . All reported shares should be delivered via ACATS using the following instructions: Wells Fargo Clearing Services, LLC ACATS Particip ant # 0141 Reference: State of Delaware Main Account Account # 3294-9051     Worthless or Non-transferable securities should not be reported until the securities become transferable or have gained value. Non-transferable securities with value should be liquidated by the holder, and then reported and remitted as the cash proceeds. Advisely offers unclaimed property management and reporting services for organizations during the annual reporting cycle. Contact Eric Burke ( eburke@adviselyllc.com ) to discuss the Advisely reporting checklist.

The State of Delaware recently issued another batch of verified report notices to several companies (“holders”). Holders are required to respond to the notice within 30 days. The goal of the verified report is to validate that the holder’s most recent annual report is complete and accurate. The process is often conducted by a third-party audit firm. The state requests the holder to verify the previous report, provide a list of entities included within that report, and submit a copy of unclaimed property policies and procedures (if applicable). Failure to adequately respond to the requests may result in additional enforcement efforts (Compliance Review, Voluntary Disclosure Agreement program, or examination). We encourage holders to review current policies and procedures to confirm they align with state expectations. If you have received correspondence from the state or need additional information about the process, contact Eric Burke ( eburke@adviselyllc.com ).

Those tasked with unclaimed property compliance duties in their organization understand that the reporting process is a year-round responsibility. As unclaimed property impacts several departments in a particular business, companies should implement procedural enhancements to prepare for reporting deadlines. Many jurisdictions have different requirements and reporting deadlines. Each department should work cohesively to address property (such as aged credits or uncashed disbursements) before reaching dormancy. Many states have unclaimed property reporting deadlines in the fall. Advisely recommends that companies compile listings of property reaching dormancy and begin owner outreach at least 4-6 months before the reporting deadline. As this timeframe aligns with many of the statutorily required due diligence mailings mandated by the states, it ensures owners have the best likelihood of receiving their unclaimed funds prior to being reported to the state. The time is now – identify aged property and work with your organization to reunite owners with their funds. At Advisely, we partner with companies using our technology and experience to proactively activate owner outreach and due diligence. Our process helps companies maintain relationships with customers, vendors, employees, and shareholders. Implementing tracking systems and organizing accurate owner contact information can be a daunting task if not addressed appropriately. Our professionals leverage our resources to help companies stay in compliance and avoid penalties and other state enforcement. For additional information regarding our services, contact Eric Burke ( eburke@adviselyllc.com ).

In Advisely’s March 7, 2024 blog post, we discussed the Delaware Voluntary Disclosure Agreement (“VDA”) program for unclaimed property. Delaware issues “invitations” to companies to enroll in the VDA program. The most recent mailings were issued in late February. The communication explains that failure to respond within 90 days will likely result in an audit. As the deadline is quickly approaching, companies should ensure personnel are educated regarding the current internal policies and how the VDA response will impact your organization. There is no one-size-fits-all approach to unclaimed property enforcement. As our experts have extensive experience with the VDA and audit processes, contact us to guide you through your options.

March 7, 2024: Hundreds of companies will be invited to participate in Delaware's unclaimed property Voluntary Disclosure Agreement ("VDA") program this year. The latest mailings were sent on February 23, 2024. Companies ("Holders") have 90 days to enroll and failure to respond will likely result in an audit. Although there are no specific criteria for Delaware to select holders for audits or VDA invitations, gaps in reporting history or recent acquisitions/mergers could land your business on the target list. If you believe your company may be out of compliance, you can opt into the program even if you do not receive an invitation. VDAs allow holders to report past-due property without the risk of an audit. Additionally, holders that reach a settlement agreement as a result of completing the Delaware VDA program receive a waiver of interest and penalties. The VDA program is a beneficial option; however, companies should consider expert assistance when determining the next steps. Several factors should be discussed (such as prior mergers and acquisitions, record availability, and prior filing history) when responding to the invitation. The Advisely professionals have extensive experience with Delaware's programs, including prior third-party audit work. Our experts offer robust and cost-effective solutions to our clients seeking assistance with all aspects of unclaimed property compliance.