How You Can Lose Your Savings To The State
Did you know that the state can take your money from the bank and you can't do a thing about it? Here is how.
You start an account, we will say a savings account, you put in money and you just want it to collect some interest. So, you don't touch it for a few years. The State might look at that account and say that you have abandoned it and the bank has to turn it over to the state. 3 to 5 years it takes before the state you live in can claim it.
It's called escheatment: According to Wells Fargo, it means turning over unclaimed or abandoned property.
Escheatment is the process of turning over unclaimed or abandoned property to a state authority. Escheatment laws require mutual fund companies to turn over client account fund shares if the owner cannot be located within a length of time determined by each state.
Even if you have automatic transactions, they are not considered activity, because it becomes automatic it can still happen without the owner doing anything. Make sure you spend or take out the money in that account and check on that account every 2-3 years.
What happens if your money does get turned over? Here's what you do, visit your state treasurer or controller office website.