Unclaimed Funds

Many states require that you report any unclaimed funds also known as the State Requirement to Escheat Unclaimed Royalties.

We do not currently have a utility in the software that will automatically do this for you.

To accomplish this task within our software you can do the following:
Create the Suspense Beginning Balance/Adjustment record for the owner that needs to be sent in for the amount that is over 2 years (or the amount of time your state requires). Use the date, and production period of the last closed run for the group that the well is in. Use the same “Type” as what the monies went into suspense with. So, if the owner's interest was on hold two years ago, use the “Interest on Hold” suspense type. Since you'll be reducing the owner's suspense balance, make sure the total of the amounts that you enter is a negative Net Amount. For example, if this is a royalty owner, and there is no expense affecting their current suspense balance, you'll need to enter negative income, and positive tax amounts to create a negative Net Amount thereby reducing the owner's suspense balance on that well.

This will adjust the balance for the owner. You can then create a manual check to send to the state for the total unclaimed royalty you're reporting. Be sure to clear the amount reported from your Owner Legal Suspense account, so that the balance is reduced by the amount paid to the state.