When the length of a dormancy period is shortened, it significantly increases the likelihood of an account entering into dormancy and being seized by the State as California unclaimed property.
Below is a list of the types of accounts that are adversely affected by shortening dormancy periods because they often represent long terms investments or savings which do not warrant regular interaction on the part of the account owner.
- Savings accounts
- Investment accounts
- Mutual funds
- Other long-term hold investments
Such accounts typically see little or no activity over lengthy periods of time as owners either leave them alone to appreciate in value, or continue to auto-deposit into the accounts. Unfortunately, deposits are not considered interaction between the account holder and financial institution holding the account. Unless those account holders are notified of the changes to dormancy periods, many will find their IRA’s, savings, and investment accounts have been turned over to the State.
Taking Steps Toward Change
Unclaimed property laws were established to protect consumers from private and public entities that were quietly using dormant funds and interpreting laws adverse to the interests of the owner. Now the question is; are states taking similar actions that are adverse to consumer protection?
At Choice Plus, LLC, we strongly believe that unclaimed property should be returned to the appropriate owner. We collaborate with the American Bar Association and the Uniform Law Commission on unclaimed property law reform with an emphasis on strengthening owners and claimant rights. We also petition state governments to amend unclaimed property laws to make sure that the interests of owners are always superior to the interests of the government.
If you’d like to learn more about our involvement in changing unclaimed property laws, or to schedule a meeting with our team to discuss your unclaimed property, give us a call.