Delaware VDA Invitations Scheduled to Mail on April 11th

The next round of invitations to enroll in the Secretary of State’s Voluntary Disclosure Program (VDA program) are scheduled to mail on April 11, 2025.*  Companies (or holders) have 90 days to enroll in the VDA program or they will be referred to the Department of Finance for an unclaimed property audit.

Under Delaware’s unclaimed property law, the state has the authority to request that a company enter the VDA program to determine whether it is in compliance with the law.  Note that Delaware is also required to invite a holder to participate in the VDA program before it can initiate an unclaimed property audit.

Delaware’s VDA program has several benefits when compared to an audit, including:

• The VDA program is typically less time-consuming and less of a drain on the company’s financial and internal resources.
• The holder has greater control over the review process and determines the property types that will be within the scope of the VDA.
• Successful completion of the VDA program includes a waiver of penalties and interest and a release of liability with respect to the entities and properties included in the VDA.

There are certain circumstances where the Delaware VDA program may not be in the holder’s best interest, so it is important to be aware of any risks prior to enrollment.  For example, participation in the VDA program can bar a holder from asserting legal positions against the state in the future, such as the state’s use of estimation.

If you have recently received any type of outreach from Delaware, please Contact Us so that we may assist you in determining your next steps.

* Per the Delaware Secretary of State’s webpage, April 11^th is an approximate mailing date and could be subject to change.

*Content contained in this article is considered accurate as of the publish date.