Skip to comments.Escheatment of personal property
Posted on 11/10/2017 8:19:09 AM PST by ProudFossil
My wife and I have an account with one of the large mutual fund companies. We were just informed that the state is getting ready to seize the account because it is considered abandoned. We have had the fund for about 12 years with the dividends and capital gains automatically deposited in our bank account. After calling the fund we were told that even though there have been approximately 150 automatic transactions on the account over the last 12 years they did not count as activity and so the state is preparing to seize the account. We were told we had to do some type of transaction at least once a year in order to prevent this. And it could be as simple as a phone call to let them know we are still alive. Is this the first step in the rumor about the gubmint taking the IRAs?
No. It is a long standing practice. But it is the Gov trying to steal your money.
Is this the first step in the rumor about the gubmint taking the IRAs?
No. Just do the transaction as required.
Same thing has happened to me a coup[le of years back. (Illinois)
Well, sounds like something that needs reform. If even automatic transactions are going between it and another account that DOES have “people” transactions going on, then it shouldn’t escheat.
However, just adding something manually to the account about which escheatment is pending ought to stop that. This is why the bank warns.
Stealing is what governments do. After all, most levels of government cannot simply create money out of thin air before they pies it off on (for the most part) progressive spending.
I had this happen because I lived overseas I could not deposit money into a 401K.
Because I didn’t do what I could not do the state of New Jersey attempted to claim the account was abandoned.
No. But now that you have contacted and talked to the mutual fund company, they should NOT be turning it over to the state, in my opinion. Call the office of your secretary of state, and see what can be done to stop this process.
If it DOES get turned over, there is usually some minimal paperwork to “claim” it back, but better to not have to go through that, if it can be avoided.
Send in a check for a penny once a year. Bastards!
Between us we have about fourteen funds, cds, and other accounts. So you are saying that even though we have all kinds of statements, letters, notices from them we still have to call each one of them every year? That is ridiculous. I am beginning to see why there is so much actual money being held under the mattress. We are 80 years old and have a hard time remembering our own names let alone having to phone all these people.
Which State? Name and shame it!
I like your suggestion. Of course most of them have a minimum deposit statement but we then would have the returned check as proof that we contacted them. Thank you.
I’m not sure what state you’re in, but in my situation here in Colorado, it was very easy to get the asset back. It was just a pain in the butt to have to do it. However, the magic of the whole thing is that it suddenly became laundered money - at least in my case. The tax obligations to both the Fed and state just vanished with their attempted confiscation.
Ours is New Mexico but Googling the escheatment law I find every state has the same type of law.
> We were just informed that the state is getting ready to seize the account because it is considered abandoned. <
I’m curious. How were you informed? Did the state send you a letter? Or was it the mutual fund company?
Anyway, this whole thing is outrageous. Any kind of “escheatment” should require - at a minimum - a death certificate, then a five-year waiting period.
Every state has a claims department if it should get there. There is no fee to get it. The shortcoming is that if it is an interesting bearing account, it will not accumulate.
LOL! God Bless you and your family.
Perhaps its time to add the children onto the accounts. Or liquidate, cash out, close 12-13 of those funds you can’t handle, and operate with 2 (3 at the most) accounts.
They get nothing. They basically hold it until you make a claim.