Posted on 11/06/2017 10:05:41 PM PST by Oshkalaboomboom
Two years ago, I wrote a column that frightened a lot of people. Now, I’m going to scare you again — this time, maybe even more.
That column, which appeared on Sept. 24, 2015, explained that it had become easier for states to confiscate people’s bank, money market and other financial accounts because they were “abandoned.”
So-called escheatment laws have been on the books forever. But states have been changing the rules so that it has become simpler for them to consider an account dormant — and then take it over.
It’s a great scam for states that are desperate for money.
I wrote that 2015 column at the urging of the Investment Company Institute, which represents mutual funds and other financial institutions. The ICI was rightly concerned because these days an account could be considered abandoned even if the owner regularly got paperwork from the financial institution.
In today’s world, the owner has to take an active participation in the account — deposit or withdraw money, make an inquiry, etc. — in order to avoid this fate, ICI told me.
“No, no, no,” a lot of readers wrote to me. That couldn’t be true. The ICI and I must be wrong.
Well, here’s a personal story that will convince you and probably make you run to your bank today.
In 1999, my mother, Margaret Crudele, did a very nice thing. She opened a bank account at Staten Island Savings Bank for each of her eight grandchildren. She deposited $1,000 in each account, and she wanted the kids to get the money after she died.
Not a great deal of money, but a wonderful gesture for the kids, who were in their teens at the time.
(Excerpt) Read more at nypost.com ...
Every 6 months I make a deposit in my daughters savings account. I also do nominal transfers between other accounts to ensure they are kept active.
Make two accounts. One is your actual account, and the second is used for those kind of payments. That way you can control the money in the account and how much is available for when payments are due / when stuff changes.
And also, keep bank statements and paperwork related to them.
When my aunt passed away, there were problems with her estate, because she had bank accounts at banks which had been bought out by other larger banks, and bond coupons to cash in, which were somehow involved with banks which no longer existed.
I wasn’t privy to all the details, but apparently she had some bonds, had failed to cash in the interest due from the coupons, and the cashing in process involved a correspondent bank, which had been bought by another bank, so the bank didn’t exist any longer.
If a bank merges into another bank, or is bought by another bank, the transition should be seamless. But if enough years go by, and there’s no paperwork on it, and you have to try to prove to someone at the bank that this account existed and was absorbed from another bank, you will have a tough time getting your money.
It has happened to me. I won’t go into details.
Making accounts go dormant, and now problems with my social security checks. It’s a huge job sorting things out at my age.
I know it would be a burden/s but how do billionaires or millionaires keep this from happening. They would probably have them in a lot of different accounts in amounts small enough to be covered by the bank insurance.
On face value separate accounts sounds like a good idea. In reality, unless you make separate accounts for each bill you pay it wouldn’t be practical to cut off every company you pay bills to in order to protect yourself against one. You would be eaten alive by bank charges if they even allowed it in the first place.
My bank was bought out by a larger bank. I had to go to every entity I do net payments to, and change all my account info. Iy was a PITA!
So I researched this with another friend who worked in PA in the “unclaimed”. Department. He said when PA confiscates stock they must sell it immediately to lock down the value.
The bank doesn’t lose your money, The Almighty State seizes your money.
Keep HARD copies of the statements. I will never willfully agree to all electronic statements.
On the subject of money security, anyone having fallout problems from the equifax mess? I started to get lifelock until I found out they partner with equifax. That relationship makes lifelock a non-starter to me.
“Also make sure you reply to shareholder voting.”
Thanks for the info. I’ve never voted before but did this time.
—I used to have a savings account at Amtrust and got a letter from them one year that I hadn’t done anything with the account in 12 months. If I remember right they told me I either needed to login, add money or pay a debt once a year to keep it active. Banks probably have different rule about that though.
Gov. Arnold Schwarzenegger........
He was ok with banks stealing from the depositors when news came out when he was gov that they were stealing. The banks said they could not locate the customers yet the reporters had no trouble finding them.
They hire people to keep an eye on their accounts.
That is exactly what they do or corporate accounts which have some different rules. The. There is a list of accounts to keep track. My great grandfather kept his list in his money belt. Had a hell of a time after great grandma washed it.
"They" like to keep us fat, dumb, and not-so-happy.
Pretty much, but this is a headache not many of us need.
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