Clarus Partners Advisors, A Richey May Company

VDA: Collaborative, company-controlled process. You review records, disclose past- due unclaimed property, and settle obligations directly with Delaware. Typically faster, less costly, and avoids penalties and interest. Audit: State-controlled, often run by third-party audit firms. Invasive, time-consuming (can stretch into years), and generally more expensive due to assessments, penalties, and professional fees.

Each Delaware VDA invitation letter sets a strict 90- day enrollment deadline from the date of the letter. If a company fails to enroll within that timeframe, the matter is referred to the Delaware Department of Finance for audit.

Delaware typically addresses these letters to a senior officer, such as the CFO or General Counsel. Copies may also be sent to the company’s registered agent.

Do not ignore it — the letter is a formal notice. Review your company’s unclaimed property records across all Delaware-incorporated entities. Determine a response strategy — VDA enrollment vs. audit. Submit Form VDA-1 electronically by the deadline to enroll. Engage experts — Clarus Partners has deep experience with Delaware VDA cases and can guide your company through the entire process, from initial response to final resolution.

Unclaimed property, also commonly referred to as “escheat”, is any obligation owed by a company to its employees, vendors, customers, or shareholders that remain unclaimed when a company loses contact with the owners for a prescribed period known as the “dormancy period.” Upon the expiration of the dormancy period, the unresolved liabilities are deemed to be abandoned and unclaimed. All companies regardless of industry, size, or location, can generate UP.

UP Is Not A Tax: UP laws are consumer- oriented statutes, intended to protect the rights of owners. Ownership: The person or entity entitled to the funds owns them forever. States hold the funds as sole custodians for the owners. State Authority: This is limited to the rights of the owners. The states have no independent right to assess or demand UP as UP is not a tax.