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Maine Changes Prospective Reporting Requirements for Gift Obligations

By: Cathleen A. Bucholtz Jim Sadik Steven Swaigenbaum Robert M. Tucci Troy R. Wangen |

Maine LD 1612 (HP 1164) was recently enacted, impacting Maine’s unclaimed property reporting requirements relating to gift obligations pursuant to 33 M.R.S. § 2067.  The new law will become effective 90 days after adjournment of the current legislative session, which is scheduled to end on April 15, 2020, and will alter the current requirement that amount reportable for an unclaimed of a gift obligation is 60% of the net obligation value at the time it is presumed abandoned.

Once effective, the revised statute will provide for a tiered reduction in the reportable amount of unclaimed gift obligations, as follows:

  1. For a gift obligation whose issuance or whose most recent transaction, whichever is later, occurred during calendar year 2019 or earlier, 60% of the net obligation value at the time it is presumed abandoned;
  2. For a gift obligation whose issuance or whose most recent transaction, whichever is later, occurred during calendar year 2020, 40% of the net obligation value at the time it is presumed abandoned;
  3. For a gift obligation whose issuance or whose most recent transaction, whichever is later, occurred during calendar year 2021, 20% of the net obligation value at the time it is presumed abandoned; and
  4. For a gift obligation whose issuance or whose most recent transaction, whichever is later, occurred during calendar year 2022 or after, 0% of the net obligation value at the time it is presumed abandoned.

Please reach out to any member of the True Partners Unclaimed Property Management Team if you have any questions about this or any other unclaimed property developments likely to impact your company.