Unlike most states, California has a two-step unclaimed property reporting process. In step one, holder companies conduct their own due diligence, sending letters to individuals and companies that have abandoned property with the reporting company. After their due diligence process has been completed, the holder company reports to California a list of properties that the company intends to remit to the state.
In step two, the State of California, through the office of John Chiang, California State Controller, sends letters to all the owners listed on the holder's preliminary unclaimed property notice report. These letters inform owners that the company "may have money, stock or safe deposit contents that appear to belong to you, and they have been unsuccessful in contacting you." The recipient of the letter is instructed to contact the reporting business entity to claim the property. Contact must be made before June 1, 2012 or else the company must turn the property over to the State Controller's Office.
After the June 1st deadline passes, companies have two weeks to reconcile the responses received in step two with their preliminary report, prepare a final remit report and send both the report and the remittance to the State Controller's Office.
Currently, we are in step two of the process. California is currently sending letters to approximately 362,000 individuals and companies to alert them of $224 million abandoned, but not escheated properties held by companies. California has already collected and is holding $6.1 billion in unclaimed property from previous reporting cycles.
Barganier and Associates handles both steps of the California reporting process for client holders, including the processing of both holder and state due diligence letters. Give your phone and email a rest by letting Barganier handle the inquiries from these due diligence letters.