Most people have misplaced something valuable at some point. A forgotten bank account, an old dividend check, or shares purchased years ago can easily fall off your radar. What many investors do not realize is that these overlooked assets may eventually become classified as unclaimed property.
Each year, billions of dollars in unclaimed assets are held by state governments and financial institutions across the United States. Common examples include uncashed dividend payments, dormant shareholder accounts, unexchanged shares from corporate actions, and securities held under outdated account information. When these assets remain inactive for a state-defined period, they may enter the escheatment process and be transferred to the state's unclaimed property program.
Why assets become unclaimed
Several common situations can cause an account to become inactive:
- Failing to cash dividend or distribution checks
- Moving without updating your mailing address
- Not responding to shareholder communications
- Leaving accounts untouched for extended periods
- Changing your name without updating account records
- Failing to share investment information with beneficiaries or heirs
Transfer agents are required to make reasonable efforts to locate lost shareholders and maintain accurate records. However, outdated contact information remains one of the leading causes of dormant accounts and potential escheatment.
How to protect your assets
Preventing property from becoming abandoned is often simple. Investors should review their holdings regularly, keep contact information current, cash payments promptly, and maintain records of all investment accounts. Periodic engagement with your transfer agent can help demonstrate account activity and reduce the risk of assets being classified as abandoned.
What to do if you think you have unclaimed property
If you believe you may have lost track of an investment account, dividend payment, or other financial asset, it is important to act quickly. Asset recovery specialists can help locate dormant accounts, verify ownership, and guide shareholders through the reclamation process.
At EQ, our Asset Recovery Services help companies and shareholders navigate the complexities of unclaimed property and escheatment. Through advanced search capabilities, shareholder outreach programs, and regulatory expertise, we work to reunite owners with assets that rightfully belong to them while helping organizations maintain compliance with evolving state requirements.
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