Under the new Illinois Revised Uniform Unclaimed Property Act (Illinois RUUPA)’s new administrative rules, what is the minimum value below which unclaimed property does not have to be reported to the state? Is a bank entitled to absorb these funds?

Neither the Illinois RUUPA nor its new administrative rules provide a de minimis threshold for reporting or remitting unclaimed property to the Illinois Treasurer. Consequently, a holder of unclaimed property is not entitled to retain any of it, no matter how small the amount.

Although your bank does not need to send notice to an apparent owner for property valued at less than $50 (or less than $1,000 for securities), you still must report and submit such property to the Illinois Treasurer. Further, while your bank generally may report property valued at less than $5 in the aggregate — without providing the apparent owner’s name, address or other identifying information — you still must report and deliver such property to the Illinois Treasurer.

For resources related to our guidance, please see:

Illinois RUUPA, 765 ILCS 1026/15-401(a) (“A holder of property presumed abandoned and subject to the custody of the administrator shall report in a record to the administrator concerning the property.”)

Illinois RUUPA, 765 ILCS 1026/15-603(a) (“Except as otherwise provided in this Section, on filing a report under Section 15-401, the holder shall pay or deliver to the administrator the property described in the report.”)

Illinois RUUPA, 765 ILCS 1026/15-501(a) (“ . . . the holder of property presumed abandoned shall send to the apparent owner notice by first-class United States mail . . . if: . . . (2) the value of the property is $50 or more.”)

Illinois RUUPA Administrative Rules, 74 Ill. Admin. Code 760.460(c) (“A holder does not need to send notice by first-class U.S. Mail if any of the following are true: 1) the property is valued at less than $50; . . .”)

Illinois RUUPA, 765 ILCS 1026/15-501(c) (“ . . . the holder of securities presumed abandoned . . . shall send to the apparent owner notice by certified United States mail . . . if: . . . (2) the value of the property is $1,000 or more.”)

Illinois RUUPA Administrative Rules, 74 Ill. Admin. Code 760.460(e) (“If the property presumed abandoned is securities valued at $1,000 or more and the holder has in its records an address for the apparent owner that the holder's records do not disclose to be invalid and is sufficient to direct the delivery of U.S. Mail to the apparent owner, then the due diligence notice shall be sent by certified U.S. Mail (see 765 ILCS 1026/15-501(c)). If the apparent owner is a natural person, then the holder should utilize Certified Mail Restricted Delivery to direct the due diligence notice to the apparent owner or the apparent owner's authorized agent.”)

Illinois RUUPA, 765 ILCS 1026/15-402(b) (“A report under Section 15-401 may include in the aggregate items valued under $5 each. If the report includes items in the aggregate valued under $5 each, the administrator may not require the holder to provide the name and address of an apparent owner of an item unless the information is necessary to verify or process a claim in progress by the apparent owner.”)

Illinois RUUPA Administrative Rules, 74 Ill. Admin. Code 760.410(a)(4) (“The report required by Article 4 of the Act must: . . . except for a traveler's check, money order, or similar instrument, contain the name, if known, last-known address, if known, e-mail address, if known, and Social Security number or taxpayer identification number, if known or readily ascertainable, of the apparent owner of property with a value of $5 or more; . . .”)

Illinois RUUPA Administrative Rules, 74 Ill. Admin. Code 760.410(b) (“Holders may report property valued at less than $5 each in the aggregate. However, the administrator may request that the holder provide information about the name, address, Social Security number or taxpayer identification number of an apparent owner of property with a value of less than $5 when the information is necessary to verify or process a claim filed with the administrator by an apparent owner.”)