Keep Track of Investment Accounts

As global citizens, it is easy to lose track of investments such as employer stock plans, 401(k)s, stock certificates, personal investment accounts, safety deposit boxes, and bank accounts. It may be a result of financial institution consolidation, because you have moved and did not update contact details such as address or phone number, or you seldom log in to the accounts because you believe you have no need. Additionally, Singapore is unique because most US financial institutions won’t work with residents in Singapore, so people don’t update their address adding another layer of complexity.

While never logging into your accounts seems fairly innocent, technology allows financial institutions to monitor log in activity. They may also send letters to the most recent address on file if there is no activity. Some financial institutions consider your account abandoned once it receives two pieces of undeliverable mail from the post office or there are uncashed dividend checks. Eventually the financial institution deems that you have lost interest in the property.

What Happens?

Property that is considered abandoned, unclaimed, or lost will be turned over to the state in a process called escheatment. The financial institution will turn over the custody of assets to the U.S. state of the last address on record or the State of Delaware. If the owner or heir comes forward, they can claim the assets back from the state, but they may not like the value of what they receive! Early withdrawal penalties and market losses may significantly affect the asset’s value or worse yet, the state may have sold your stock at the time of escheatment. Every state has a different time frame before escheated equities or safety deposit contents are sold, which is why checking your investments regularly is important.

Consolidate Accounts

In most cases, it isn’t necessary to have investment accounts at multiple custodians. Choose one or two (we like Interactive Brokers because you can use your Singapore address) and consolidate per tax status. Combine IRAs, combine Roth IRAs, and combine taxable accounts. Keep one or two bank accounts in the US and use only one bank in Singapore for personal banking. Avrio’s wealth planning clients receive a copy of their plan every year with all their accounts listed, which makes it easier to keep track of accounts.

Access your accounts online, cash or write checks, deposit or withdraw funds, execute trades, update your contact details, change beneficiaries if needed, call customer service, visit the safety deposit box. Make sure you interact with your money and your valuables.

If you do receive a notice advising you that an account is considered “inactive” or “abandoned,” respond immediately. To find out if any of your property has been escheated, visit the sites below and search participating states’ records by the property owner’s name, or for contact information for nonparticipating states.

If you do have escheated assets, please reach out to Avrio for assistance.

This material is intended for educational and informational purposes only. It is not intended to provide specific advice or recommendations for any individual. Additionally, you should consult with your Financial Advisor, Tax Advisor, or Attorney on your specific situation. The views expressed in the material are that of the author and do not necessarily reflect those of any market, regulatory body, State or Federal Agency, or Association. All efforts have been made to report or share true and accurate information. However, the information may become materially outdated or otherwise rendered incorrect due to subsequent new research or other changes, without notice. The author nor the firm are able to always verify the content from third-party sources. For additional information about the firm, please visit the MAS Website at https://www.mas.gov.sg/ and the SEC Website at www.adviserinfo.sec.gov. For a copy of the firm's ADV Part 2 Brochure, please contact us at info@avriowealth.com.