Since 2007, at least 15 states shortened their statutory dormancy periods, according to SIFMA. Anything less than five years doesn’t allow enough time for address databases to capture people who move, according to SIFMA officials.
“More account holders could get caught” with the shorter periods, Hogroian said.
SIFMA is particularly concerned about states taking investment accounts simply because the accounts have been inactive for a period of time—not unusual for the elderly, active military or custodial accounts.
Turner found that out when he visited Harris’s home in Washington in 2014. He discovered she had not been opening her mail after falling ill and being hospitalized.
“People get old, they get tired, and throw [their mail] in a pile,” he said.
It’s not known exactly how much unclaimed property states hold—current numbers are not available. But it’s a lot. As of 2011, states had claimed a total of $5.8 billion, with about $2 billion of that having been paid out, according to SIFMA.
The National Association of Unclaimed Property Administrators, which represents state officials responsible for unclaimed property, did not respond to an e-mailed request for comment for this story.
For their part, elected state treasurers boast about the assets they’ve been able to return to owners, and many maintain an active effort at connecting people with lost property through efforts like www.missingmoney.com. Turner, for instance, says he had no problem getting Harris’s balance back from Washington state.
A model unclaimed-property law approved last summer by the Uniform Law Commission, which drafts proposed state laws, could offer some protection from premature seizures if states adopt the law: The model legislation drops the inactivity test for most investment accounts.
Still, industry groups say the incentive for states to take property remains.