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Irwin Law
Irwin Law, Attorney
Category: Estate Law
Satisfied Customers: 7404
Experience:  30+ yrs. handling probate estate, wills, trust, inheritance & real estate related matters
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I have/had a drip account shares that was escheated

Customer Question

I have/had a drip account for jnj shares that was escheated in 2002. What is the obligation of the account holder to apply dividends and stock splits to the escheated shares. According to the state, the shares were not liquidated.
Submitted: 1 year ago.
Category: Estate Law
Expert:  Irwin Law replied 1 year ago.
I will try to be of assistance, but I am not sure about what is going on here. Please explain how your drip account became subject to escheat in 2002 and why you have not reclaimed it. Why wouldn't the stock have been liquidated by North Carolina unclaimed funds department by now?
Customer: replied 1 year ago.
The address on the account was my daughter's address. They moved to Maryland from NJ about 1996 without notifying the holder. Since the statements were returned, Computershare had no choice but to escheat.. I was the custodian but only recently learned of it.Before claiming the funds, I want to make sure all my ducks are lined up. In addition, the state says the shares can be returned to the account if Computershare makes the request, I would prefer that option, but Computershre refuses to cooperate.
Expert:  Irwin Law replied 1 year ago.
I'm sure that computer share has been through this process more than once and they should know what you have to do in order to reclaim the shares. It is possible that they cannot take any action on their own without instructions from the company. I suspect that the transfer agent for the company and/or the Secretary of the Corporation is the one who can make the request to the State of North Carolina to remit the shares back to your account with Computershare. Basically, whatever department or officer of the Corporation surrendered the shares to North Carolina is the proper person or agent of the Corporation to request the re-transfer, back showing that the account is no longer dormant. At least, that would be my very first move from this point in time. , And I would not wait for dividend shares to catch up with the account to get that started. Those will undoubtedly catch up with your account once the shares are returned to Computershare. Sound like a plan?I hope that you will enter a positive rating for my assistance here by clicking on 3, 4, or 5, for which there is no additional cost to you. Thanks again for using JUST ANSWER.