Presumption of Abandonment

V.S.A. tit. 27, ch. 18, subch. 2

in effect

27 V.S.A. § 1461 When property presumed abandoned

1461. When property presumed abandoned Subject to section 1469 of this title, the following property is presumed abandoned if it is unclaimed by the apparent owner during the period specified below: (1) a traveler’s check, 15 years after issuance; (2) a money order, seven years after issuance; (3) a state or municipal bond, bearer bond, or original-issue-discount bond, three years after the earliest of the date the bond matures or is called or the obligation to pay the principal of the bond arises; (4) a debt of a business association, three years after the obligation to pay arises; (5) a payroll card or demand, savings, or time deposit, including a deposit that is automatically renewable, three years after the maturity of the deposit, except a deposit that is automatically renewable is deemed matured on its initial date of maturity unless the apparent owner consented in a record on file with the holder to renewal at or about the time of the renewal; (6) money or a credit owed to a customer as a result of a retail business transaction, three years after the obligation arose; (7) an amount owed by an insurance company on a life or endowment insurance policy or an annuity contract that has matured or terminated, three years after the obligation to pay arose under the terms of the policy or contract or, if a policy or contract for which an amount is owed on proof of death has not matured by proof of the death of the insured or annuitant, as follows: (A) with respect to an amount owed on a life or endowment insurance policy, three years after the earlier of the date: (i) the insurance company has knowledge of the death of the insured; or (ii) the insured has attained, or would have attained if living, the limiting age under the mortality table on which the reserve for the policy is based; and (B) with respect to an amount owed on an annuity contract, three years after the date the insurance company has knowledge of the death of the annuitant; (8) property distributable by a business association in the course of dissolution, one year after the property becomes distributable; (9) property held by a court, including property received as proceeds of a class action, one year after the property becomes distributable; (10) property held by a government or governmental subdivision, agency, or instrumentality, including municipal bond interest and unredeemed principal under the administration of a paying agent or indenture trustee, one year after the property becomes distributable; (11) wages, commissions, bonuses, or reimbursements to which an employee is entitled, or other compensation for personal services, other than amounts held in a payroll card, one year after the amount becomes payable; (12) a deposit or refund owed to a subscriber by a utility, one year after the deposit or refund becomes payable; and (13) property not specified in this section or section 1462, 1463, 1464, 1465, 1466, or 1467 of this title, the earlier of three years after the owner first has a right to demand the property or the obligation to pay or distribute the property arises. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1462 When tax-deferred retirement account presumed abandoned

1462. When tax-deferred retirement account presumed abandoned (a) Subject to section 1469 of this title, property held in a pension account or retirement account that qualifies for tax deferral under the income-tax laws of the United States is presumed abandoned if it is unclaimed by the apparent owner three years after the later of: (1) the following dates: (A) except as in subdivision (B) of this subdivision (1), the date a second consecutive communication sent by the holder by first-class U.S. mail to the apparent owner is returned to the holder undelivered by the U.S. Postal Service; or (B) if the second communication is sent later than 30 days after the date the first communication is returned undelivered, the date the first communication was returned undelivered by the U.S. Postal Service; or (2) the earlier of the following dates: (A) the date the apparent owner becomes 72 years of age, if determinable by the holder; or (B) if the Internal Revenue Code, as may be amended, 26 U.S.C. § 1 et seq., requires distribution to avoid a tax penalty, two years after the date the holder: (i) receives confirmation of the death of the apparent owner in the ordinary course of its business; or (ii) confirms the death of the apparent owner under subsection (b) of this section. (b) If a holder in the ordinary course of its business receives notice or an indication of the death of an apparent owner and subdivision (a)(2) of this section applies, the holder shall attempt not later than 90 days after receipt of the notice or indication to confirm whether the apparent owner is deceased. (c) If the holder does not send communications to the apparent owner of an account described in subsection (a) of this section by first-class U.S. mail, the holder shall attempt to confirm the apparent owner’s interest in the property by sending the apparent owner an electronic-mail communication not later than two years after the apparent owner’s last indication of interest in the property. However, the holder promptly shall attempt to contact the apparent owner by first-class U.S. mail if: (1) the holder does not have information needed to send the apparent owner an electronic mail communication or the holder believes that the apparent owner’s electronic mail address in the holder’s records is not valid; (2) the holder receives notification that the electronic-mail communication was not received; or (3) the apparent owner does not respond to the electronic-mail communication not later than 30 days after the communication was sent. (d) If first-class U.S. mail sent under subsection (c) of this section is returned to the holder undelivered by the U.S. Postal Service, the property is presumed abandoned three years after the later of: (1) except as in subdivision (2) of this subsection, the date a second consecutive communication to contact the apparent owner sent by first-class U.S. mail is returned to the holder undelivered; (2) if the second communication is sent later than 30 days after the date the first communication is returned undelivered, the date the first communication was returned undelivered; or (3) the date established by subdivision (a)(2) of this section. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1463 When other tax-deferred account presumed abandoned

1463. When other tax-deferred account presumed abandoned Subject to section 1469 of this title and except for property described in section 1462 of this title and property held in a plan described in 26 U.S.C. § 529A, as may be amended, property held in an account or plan, including a health savings account, that qualifies for tax deferral under the income tax laws of the United States is presumed abandoned if it is unclaimed by the apparent owner three years after the earlier of: (1) the date, if determinable by the holder, specified in the income tax laws and regulations of the United States by which distribution of the property must begin to avoid a tax penalty, with no distribution having been made; or (2) 30 years after the date the account was opened. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1464 When custodial account for minor presumed abandoned

1464. When custodial account for minor presumed abandoned (a) Subject to section 1469 of this title, property held in an account established under a state’s Uniform Gifts to Minors Act or Uniform Transfers to Minors Act is presumed abandoned if it is unclaimed by or on behalf of the minor on whose behalf the account was opened three years after the later of: (1) except as in subdivision (2) of this subsection, the date a second consecutive communication sent by the holder by first-class U.S. mail to the custodian of the minor on whose behalf the account was opened is returned undelivered to the holder by the U.S. Postal Service; (2) if the second communication is sent later than 30 days after the date the first communication is returned undelivered, the date the first communication was returned undelivered; or (3) the date on which the custodian is required to transfer the property to the minor or the minor’s estate in accordance with the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act of the state in which the account was opened. (b) If the holder does not send communications to the custodian of the minor on whose behalf an account described in subsection (a) of this section was opened by first-class U.S. mail, the holder shall attempt to confirm the custodian’s interest in the property by sending the custodian an electronic-mail communication not later than two years after the custodian’s last indication of interest in the property. However, the holder promptly shall attempt to contact the custodian by first-class U.S. mail if: (1) the holder does not have information needed to send the custodian an electronic-mail communication or the holder believes that the custodian’s electronic-mail address in the holder’s records is not valid; (2) the holder receives notification that the electronic-mail communication was not received; or (3) the custodian does not respond to the electronic-mail communication not later than 30 days after the communication was sent. (c) If first-class U.S. mail sent under subsection (b) of this section is returned undelivered to the holder by the U.S. Postal Service, the property is presumed abandoned three years after the later of: (1) the date a second consecutive communication to contact the custodian by first-class U.S. mail is returned to the holder undelivered by the U.S. Postal Service; or (2) the date established by subdivision (a)(3) of this section. (d) When the property in the account described in subsection (a) of this section is transferred to the minor on whose behalf an account was opened or to the minor’s estate, the property in the account is no longer subject to this section. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1465 When contents of safe-deposit box presumed abandoned

1465. When contents of safe-deposit box presumed abandoned Tangible property held in a safe-deposit box and proceeds from a sale of the property by the holder permitted by law of this State other than this chapter are presumed abandoned if the property remains unclaimed by the apparent owner five years after the earlier of the: (1) expiration of the lease or rental period for the box; or (2) earliest date when the lessor of the box is authorized by law of this State other than this chapter to enter the box and remove or dispose of the contents without consent or authorization of the lessee. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1466 When stored-value card presumed abandoned

1466. When stored-value card presumed abandoned (a) Subject to section 1469 of this title, the net card value of a stored-value card, other than a payroll card, is presumed abandoned on the latest of three years after: (1) December 31 of the year in which the card is issued or additional funds are deposited into it; (2) the most recent indication of interest in the card by the apparent owner; or (3) a verification or review of the balance by or on behalf of the apparent owner. (b) The amount presumed abandoned in a stored-value card is the net card value at the time it is presumed abandoned. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1467 When security presumed abandoned

1467. When security presumed abandoned (a) Subject to section 1469 of this title, a security is presumed abandoned three years after: (1) the date a second consecutive communication sent by the holder by first-class U.S. mail to the apparent owner is returned to the holder undelivered by the U.S. Postal Service; or (2) if the second communication is made later than 30 days after the first communication is returned, the date the first communication is returned undelivered to the holder by the U.S. Postal Service. (b) If the holder does not send communications to the apparent owner of a security by first-class U.S. mail, the holder shall attempt to confirm the apparent owner’s interest in the security by sending the apparent owner an electronic-mail communication not later than two years after the apparent owner’s last indication of interest in the security. However, the holder promptly shall attempt to contact the apparent owner by first-class U.S. mail if: (1) the holder does not have information needed to send the apparent owner an electronic-mail communication or the holder believes that the apparent owner’s electronic-mail address in the holder’s records is not valid; (2) the holder receives notification that the electronic-mail communication was not received; or (3) the apparent owner does not respond to the electronic-mail communication not later than 30 days after the communication was sent. (c) If first-class U.S. mail sent under subsection (b) of this section is returned to the holder undelivered by the U.S. Postal Service, the security is presumed abandoned three years after the date the mail is returned. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1468 When related property presumed abandoned

1468. When related property presumed abandoned At and after the time property is presumed abandoned under this chapter, any other property right or interest accrued or accruing from the property and not previously presumed abandoned is also presumed abandoned. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1469 Indication of apparent owner interest in property

1469. Indication of apparent owner interest in property (a) The period after which property is presumed abandoned is measured from the later of: (1) the date the property is presumed abandoned under this subchapter; or (2) the latest indication of interest by the apparent owner in the property. (b) Under this chapter, an indication of an apparent owner’s interest in property includes: (1) a record communicated by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held; (2) an oral communication by the apparent owner to the holder or agent of the holder concerning the property or the account in which the property is held, if the holder or its agent contemporaneously makes and preserves a record of the fact of the apparent owner’s communication; (3) presentment of a check or other instrument of payment of a dividend, interest payment, or other distribution, or evidence of receipt of a distribution made by electronic or similar means, with respect to an account, underlying security, or interest in a business association; (4) activity directed by an apparent owner in the account in which the property is held or in another account of the owner’s held by the same business association or financial organization, including accessing the account or information concerning the account, or a direction by the apparent owner to increase, decrease, or otherwise change the amount or type of property held in the account; (5) a deposit into or withdrawal from an account at a financial organization, including an automatic deposit or withdrawal previously authorized by the apparent owner other than an automatic reinvestment of dividends or interest; (6) subject to subsection (e) of this section, payment of a premium on an insurance policy; (7) in the case of any demand, savings, or matured time deposits with a banking or financial organization, including deposits that are automatically renewable, the holder has sent the owner by first-class U.S. mail a statement of account or other associated mailing from the bank or financial institution, which has not been returned by the U.S. Postal Service as undeliverable. In the event the mailing was returned as undeliverable, the property shall be considered abandoned three years after the return, unless the owner during that three years takes any action described in subsection (b) of this section; and (8) any other action by the apparent owner that reasonably demonstrates to the holder that the apparent owner knows that the property exists. (c) An action by an agent or other representative of an apparent owner, other than the holder acting as the apparent owner’s agent, is presumed to be an action on behalf of the apparent owner. (d) A communication with an apparent owner by a person other than the holder or the holder’s representative is not an indication of interest in the property by the apparent owner unless a record of the communication evidences the apparent owner’s knowledge of a right to the property. (e) If the insured dies or the insured or beneficiary of an insurance policy otherwise becomes entitled to the proceeds before depletion of the cash surrender value of the policy by operation of an automatic-premium-loan provision or other nonforfeiture provision contained in the policy, the operation does not prevent the policy from maturing or terminating. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1470 Knowledge of death of insured or annuitant

1470. Knowledge of death of insured or annuitant (a) As used in this section, “Death Master File” means the U.S. Social Security Administration Death Master File or other database or service that is at least as comprehensive as the U.S. Social Security Administration Death Master File for determining that an individual reportedly has died. (b) With respect to a life or endowment insurance policy or annuity contract for which an amount is owed on proof of death, but which has not matured by proof of death of the insured or annuitant, the company has knowledge of the death of an insured or annuitant when: (1) the company receives a death certificate or court order determining that the insured or annuitant has died; (2) due diligence, performed as required pursuant to 8 V.S.A. part 3, to maintain contact with the insured or annuitant or determine whether the insured or annuitant has died, validates the death of the insured or annuitant; (3) the company conducts a comparison for any purpose between a Death Master File and the names of some or all of the company’s insureds or annuitants, finds a match that provides notice that the insured or annuitant has died, and validates the death; (4) the Administrator or the Administrator’s agent conducts a comparison for the purpose of finding matches during an examination conducted under subchapter 10 of this chapter between a Death Master File and the names of some or all of the company’s insureds or annuitants, finds a match that provides notice that the insured or annuitant has died, and the company validates the death; or (5) the company: (A) receives notice of the death of the insured or annuitant from an administrator, beneficiary, policy owner, relative of the insured, or trustee or from a personal representative, guardian, executor, or other legal representative of the insured’s or annuitant’s estate; and (B) validates the death of the insured or annuitant. (c) The following rules apply under this section: (1) A Death Master File match under subdivision (b)(3) or (4) of this section occurs if the criteria for an exact or partial match are satisfied as provided by: (A) law of this State other than this chapter; (B) a rule or policy adopted by the Commissioner of the Vermont Department of Financial Regulation pursuant to 3 V.S.A. chapter 25; or (C) section 1472 of this title. (2) The Death Master File match does not constitute proof of death for the purpose of submission to an insurance company of a claim by a beneficiary, annuitant, or owner of the policy or contract for an amount due under an insurance policy or annuity contract. (3) The Death Master File match or validation of the insured’s or annuitant’s death does not alter the requirements for a beneficiary, annuitant, or owner of the policy or contract to make a claim to receive proceeds under the terms of the policy or contract. (4) If no provision in 8 V.S.A. part 3 establishes a time for validation of a death of an insured or annuitant, the insurance company shall make a good faith effort using other available records and information to validate the death and document the effort taken not later than 90 days after the insurance company has notice of the death. (d) This chapter does not affect the determination of the extent to which an insurance company before January 1, 2021, had knowledge of the death of an insured or annuitant or was required to conduct a Death Master File comparison to determine whether amounts owed by the company on a life or endowment insurance policy or annuity contract were presumed abandoned or unclaimed. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021; amended 2023, No. 161 (Adj. Sess.), § 26, eff. June 6, 2024.

27 V.S.A. § 1471 Deposit account for proceeds of insurance policy or annuity contract

1471. Deposit account for proceeds of insurance policy or annuity contract If proceeds payable under a life or endowment insurance policy or annuity contract are deposited into an account with check or draft-writing privileges for the beneficiary of the policy or contract and, under a supplementary contract not involving annuity benefits other than death benefits, the proceeds are retained by the insurance company or the financial organization where the account is held, the policy or contract includes the assets in the account. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

27 V.S.A. § 1472 Unclaimed life insurance benefits

1472. Unclaimed life insurance benefits (a) As used in this section: (1) “Contract” means an annuity contract. The term “contract” shall not include an annuity used to fund an employment-based retirement plan or program where: (A) the insurer does not perform the record-keeping services; or (B) the insurer is not committed by terms of the annuity contract to pay death benefits to the beneficiaries of specific plan participants. (2) “Death Master File” means the U.S. Social Security Administration’s Death Master File or any other database or service that is at least as comprehensive as the U.S. Social Security Administration’s Death Master File for determining that an individual reportedly has died. (3) “Death Master File match” means a search of the Death Master File that results in a match of the Social Security number or the name and date of birth of an insured, annuity owner, or retained asset account holder. (4) “Knowledge of death” means: (A) receipt of an original or valid copy of a certified death certificate; or (B) a Death Master File match validated by the insurer in accordance with subdivision (b)(1)(A) of this section. (5) “Policy” means any policy or certificate of life insurance that provides a death benefit. The term “Policy” shall not include: (A) any policy or certificate of life insurance that provides a death benefit under an employee benefit plan: (i) subject to The Employee Retirement Income Security Act of 1974, Pub.L. No. 93-406, as may be amended; or (ii) under any Federal employee benefit program; (B) any policy or certificate of life insurance that is used to fund a preneed funeral contract or prearrangement; (C) any policy or certificate of credit life or accidental death insurance; or (D) any policy issued to a group master policyholder for which the insurer does not provide record-keeping services. (6) “Record-keeping services” means those circumstances under which the insurer has agreed with a group policy or contract customer to be responsible for obtaining, maintaining, and administering in its own or its agents’ systems information about each individual insured under an insured’s group insurance contract, or a line of coverage under the contract, at least the following information: (A) Social Security number or name and date of birth; (B) beneficiary designation information; (C) coverage eligibility; (D) benefit amount; and (E) premium payment status. (7) “Retained Asset Account” means any mechanism whereby the settlement of proceeds payable under a Policy or Contract is accomplished by the insurer or an entity acting on behalf of the insurer depositing the proceeds into an account with check or draft writing privileges, where those proceeds are retained by the insurer or its agent, pursuant to a supplementary contract not involving annuity benefits other than death benefits. (b) An insurer shall perform a comparison of its insureds’ in-force Policies, Contracts, and Retained Asset Accounts against a Death Master File, on at least a semiannual basis, by using the full Death Master File once and thereafter using the Death Master File update files for future comparisons to identify potential matches of its insureds. For those potential matches identified as a result of a Death Master File Match, the insurer shall: (1) within 90 days of a Death Master File Match: (A) complete a good faith effort, which shall be documented by the insurer, to confirm the death of the insured or retained asset account holder against other available records and information; (B) determine whether benefits are due in accordance with the applicable policy or contract; and if benefits are due in accordance with the applicable policy or contract: (i) use good faith efforts, which shall be documented by the insurer, to locate the beneficiary or beneficiaries; and (ii) provide the appropriate claims forms or instructions to the beneficiary or beneficiaries to make a claim including the need to provide an official death certificate, if applicable under the policy or contract. (2) With respect to group life insurance, insurers are required to confirm the possible death of an insured when the insurers maintain at least the following information of those covered under a policy or certificate: (A) Social Security number or name and date of birth; (B) beneficiary designation information; (C) coverage eligibility; (D) benefit amount; and (E) premium payment status. (3) Every insurer shall implement procedures to account for: (A) common nicknames, initials used in lieu of a first or middle name, use of a middle name, compound first and middle names, and interchanged first and middle names; (B) compound last names, maiden or married names, and hyphens, blank spaces, or apostrophes in last names; (C) transposition of the “month” and “date” portions of the date of birth; and (D) incomplete Social Security number. (4) To the extent permitted by law, the insurer may disclose minimum necessary personal information about the insured or beneficiary to a person who the insurer reasonably believes may be able to assist the insurer locate the beneficiary or a person otherwise entitled to payment of the claims proceeds. (c) An insurer or its service provider shall not charge any beneficiary or other authorized representative for any fees or costs associated with a Death Master File Search or verification of a Death Master File Match conducted pursuant to this section. (d) The benefits from a Policy, Contract, or a Retained Asset Account, plus any applicable accrued contractual interest, shall first be payable to the designated beneficiaries or owners and, in the event said beneficiaries or owners cannot be found, shall be reportable to the Administrator as unclaimed property pursuant to this chapter. Interest payable under 8 V.S.A. § 3665 shall not be payable as unclaimed property under this chapter. (e) An insurer shall notify the Administrator upon the expiration of the statutory time period for the property to be presumed abandoned that: (1) a Policy or Contract beneficiary or Retained Asset Account holder has not submitted a claim with the insurer; and (2) the insurer has complied with subsection (a) of this section and has been unable, after good faith efforts documented by the insurer, to contact the Retained Asset Account holder, beneficiary, or beneficiaries. (f) Upon such notice, an insurer shall immediately submit the unclaimed Policy or Contract benefits or unclaimed Retained Asset Accounts, plus any applicable accrued interest, to the Administrator. (g) Failure to meet any requirement of this section with such frequency as to constitute a general business practice is a violation of 8 V.S.A. § 4724(9). Nothing in this section shall be construed to create or imply a private cause of action for a violation of this section. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021; amended 2023, No. 6, § 370, eff. July 1, 2023.

27 V.S.A. § 1473 When abandonment period is accelerated

1473. When abandonment period is accelerated Notwithstanding sections 1461 through 1469 of this title, and subject to section 1469 of this title: (1) If the holder has imposed a charge against property for reason of owner inactivity or the failure of the owner to claim the property within a specified period of time, and the abandonment period for the property as specified in sections 1461 through 1469 of this chapter is greater than two years, the property shall instead be presumed abandoned two years from the date of the owner’s last indication of interest in the property. (2) A deceased owner cannot indicate interest in his or her property. If the holder has reason to believe that the owner’s deceased, and the abandonment period for the owner’s property in sections 1461 through 1469 of this title is greater than two years, the property shall instead be presumed abandoned two years from the date of the owner’s last indication of interest in the property. If the owner’s property is subject to section 1462 or 1463 of this title, the two-year presumption of abandonment shall run from the earliest of the date of distribution or attempted distribution of the property, the date of the required distribution as stated in the plan or trust agreement governing the plan, or the date, if determinable by the holder, specified in the income tax laws of the United States by which distribution of the property must begin in order to avoid a tax penalty. Added 2019, No. 93 (Adj. Sess.), § 2, eff. Jan. 1, 2021.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/27/018Fetched: 10/21/2026