For Immediate Release
May 27, 2003
New Jersey – Time Limits for Unclaimed Property to Escheat to State Reduced
Effective July 1, 2002, New Jersey has reduced the time limit for its presumption of abandonment for all property located within or without the state. The time limit moves from 5 to 3 years for all property, formerly all intangible property, that is held, issued, or owing in the ordinary course of the holder’s business. After such period, the property is eligible to escheat to the state (reversion of property to the state when there are no legal heirs).
Other reduced time limits include:
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from 5 to 3 years for monies payable by check, draft, or similar instrument whereby a financial institution is liable, such as cashier’s checks and certified checks;
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from 7 to 3 years for stock, unclaimed dividends or distributions, property held in a fiduciary capacity, and credit memos;
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from 10 to 3 years for a demand savings, or time deposit, funds paid toward the purchase of a share, mutual fund investment certificate or other interest in a financial organization.
If you would like additional information on this topic or have any questions, please contact James Privett, Regional Vice President - Sales & Use Tax Group at (615) 373-8373. E-mail jprivett@thesaltgroup.com
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