Wednesday, January 29, 2014

WARNING: Keep Your Financial Accounts Active Or Become a Victim of The State

EPJ reader Brandon emails:
I'm a big fan of EPJ and the ALERT. As an accountant I see quite a few statements of various sorts. As a person with an eye toward liberty the statements in the picture below had a very interesting warning added to the bottom in the past year. I immediately thought of the recent shrinking beverages post at EPJ and how great side-by-side comparisons can be.

The first simply has some simple info about managing your holdings online. 
The second, the same holdings a mere 3 months later, has a theft warning! Theft from who? The state, of course. 
The third is even more detailed about the threat of state abandoned property laws.

These types of holdings are often things people only think about once a year when they get a 1099 to include earnings on their tax returns. They just leave them alone and let them grow. The only danger in that should be the obvious risk of their holdings losing value in the market, but apparently now they have to worry about theft by the state as well.


  1. Good lookin' out Brandon.

  2. According to Computer Share:

    Escheatment is the process of transferring abandoned property—including securities and the funds associated with them—to individual states and US territories, following the requirements of individual state and territory laws....

    Many state governments have been relying more on the income from escheatment in recent years, and have become more aggressive in pursuing companies that are not in compliance...

    When a shareholder hasn’t demonstrated ownership of property—for example, by cashing dividend checks or responding to mailings—for a period of time, that property is deemed abandoned and is turned over to the state. The state then converts the property to cash, within 30 days to two years. A shareholder who is holding securities that have been escheated will only be able to reclaim the sale price the state received, without interest, not the securities themselves.

  3. The designated private sector organization in the U.S. that establishes financial accounting and reporting cpa firm standards.