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The title sounds ridiculous but hear me out because actually it happened.<\/em><\/strong><\/p>\n A German citizen who worked for Amazon had shares of stock. Lots of shares.<\/p>\n But because of an address mix up, the financial institution that held them was unable to reach him for several years via mail. Because of this, after a few years (3), the institution deemed the property as abandoned and turned it over to California\u2019s unclaimed property division.<\/p>\n Three years of returned mail is all it took for the shares to go to the state.<\/p>\n California, completely within its rights, then sold the stock and held the cash until the citizen claimed it. I don\u2019t know why selling it was necessary from the perspective of the owner (I know why from the state\u2019s perspective, they can use the cash until he shows up!).<\/p>\n By the time he did, the stock was worth significantly<\/span><\/strong> more. The case worked its way to the Supreme Court but the court declined to hear it.<\/p>\n And if you\u2019re wondering \u2013 this was all completely legal per state unclaimed property laws.<\/p>\n Quick Answer:<\/strong> Yes, it is possible.<\/p>\n Every state has laws allowing financial assets, including stocks, to be transferred to the state when they\u2019re legally considered abandoned. In most states, the dormancy period is three or five years, but each state defines the triggering event differently.<\/p>\n Once securities reach the state, some states eventually sell them, potentially leaving you entitled to cash rather than the shares and any future appreciation\u2026 which can be significant.<\/p>\n I learned this story through a Fox News opinion article sensationally titled \u201cGovernments can take your stocks without your permission. It happens all the time<\/a>.\u201d<\/p>\n It\u2019s inaccurate because the government doesn\u2019t really \u201ctake it.\u201d It\u2019s been deemed abandoned and so it has to go somewhere. They don\u2019t seize it in some kind of asset forfeiture situation.<\/p>\n The end result is messy. The process begins when a financial institution can\u2019t reach the owner within a specified period of time, which varies by state. If a bank has your money and can\u2019t seem to find you, what are they supposed to do?<\/p>\n If someone sends you a check that you never cash, they still owe you the money but they can no longer find you. They can\u2019t be forced to look for you forever, that\u2019s just not reasonable. They also shouldn\u2019t just hold it and wait for you to remember because youwon\u2019t.<\/p>\n So, they send it to the state\u2019s unclaimed property division and it\u2019s now on you to recover it.<\/p>\n The legal process is called escheatment, when financial institutions transfer abandoned, dormant, and unclaimed property to the state government. The National Association of Unclaimed Property Administrators describes unclaimed property as accounts or property for which there has been no owner-generated activity or contact for a designated dormancy period.<\/p>\n The important part is this \u2013 it\u2019s still your property and the claims process is usually straightforward. I\u2019ve talked about it extensively when I recommend you periodically search for your missing money<\/a>.<\/p>\n But stocks, unlike cash, create a special problem.<\/strong><\/p>\n The state may not keep your shares indefinitely. It may sell them. And once they\u2019re sold, recovering your money doesn\u2019t necessarily put you back where you would have been had the shares never been taken in the first place.<\/p>\n That\u2019s essentially what happened to Jan Peters.<\/p>\n Peters, a German citizen living in Germany and former Amazon employee, owned 1,029 shares of Amazon stock that was transferred to California\u2019s unclaimed-property program. Then Amazon stock split 20-for-1, which meant had had 20,580 shares!<\/p>\n According to court filings, his German address somehow appeared as Munich, CA 00000 \u2013 which obviously does not exist.<\/p>\n California eventually sold the Amazon shares for approximately $1.6 million. Peters later recovered the proceeds, but by June 2025 he claimed those shares would have been worth more than $4.2 million had they remained invested. (and worth $5.35 million today!)<\/p>\n It went all the way to the Supreme Court, which declined to hear his case.<\/p>\n I checked the current securities dormancy information published by the National Association of Unclaimed Property Administrators.<\/p>\n A majority of states now list a three-year dormancy period for securities. A smaller group of states generally use five years.<\/p>\n But there\u2019s an enormous caveat:<\/p>\n The dormancy period isn\u2019t necessarily the same thing as \u201cyears since you logged in.\u201d<\/strong><\/p>\n State statutes determine what starts that clock.<\/p>\n Here are the current securities dormancy periods.<\/p>\n The periods below are based on NAUPA\u2019s current 2026 securities reporting data. Individual statutes can impose additional conditions concerning returned mail, owner contact, electronic communication, death and other events, so this table should be viewed as a consumer guide rather than a substitute for the actual statute.<\/p>\n There are 35 states with a general three-year securities dormancy period<\/strong>, versus 14 states with five-year periods, with Illinois and Florida requiring more explanation than a single number provides.<\/p>\n Important:<\/strong> The actions above are practical ways to reduce the risk that your securities will be treated as abandoned, not guaranteed legal safe harbors. State laws differ on what constitutes an \u201cindication of interest,\u201d and simply logging into an account may not satisfy every state\u2019s requirements. The safest approach is to keep your contact information current, respond to communications from the holder, and periodically initiate contact or activity that the institution records.<\/p>\n It\u2019s important you review your state for its laws on what is considered inactivity, what triggers the presumption of abandonment. In some states, just logging in resets the clock. In others, it doesn\u2019t matter.<\/p>\n Illinois provides one of the clearest examples of why the word \u201cactivity\u201d needs clarification.<\/p>\n Under Illinois law, a security can generally be presumed abandoned at the earlier of:<\/p>\n But Illinois also defines what counts as an indication of interest \u2013 it includes communicating with the holder, accessing information about the account, directing activity in the account, making deposits or withdrawals, and certain other owner-directed actions.<\/p>\n Automatic reinvestment of dividends doesn\u2019t necessarily count.<\/p>\n So here, logging into the account may genuinely make a difference as it is \u201caccessing information about the account.\u201d<\/p>\n New York\u2019s statute governing broker-held securities says an account can become abandoned when, for three successive years, account statements or other communications sent by first-class mail have been returned because the owner couldn\u2019t be located.<\/p>\n That\u2019s materially different from treating an account as abandoned merely because you didn\u2019t trade.<\/p>\n New York law also gives the comptroller authority to sell securities held as abandoned property.<\/p>\n South Carolina\u2019s statute is particularly explicit.<\/p>\n Stock or another equity interest can generally become unclaimed three years after the earliest of events including:<\/p>\n Communication from the owner can stop the three-year clock.<\/p>\n Again, that\u2019s not simply \u201cyou didn\u2019t log in for three years.\u201d<\/p>\n Abandonment is the first trigger, liquidation is the second and states vary on when that is permitted..<\/p>\n For example, Illinois generally prohibits its administrator from selling a security until three years after receiving it and providing the required notice, although the law allows an earlier sale if the administrator determines that doing so is in the owner\u2019s best interest.<\/p>\n Maine uses a much shorter window. Its Revised Unclaimed Property Act generally permits securities to be sold after the state has held them for one year. If an owner claims after the applicable protection period and the securities have already been sold, the owner generally receives the net sale proceeds rather than subsequent appreciation.<\/p>\n New York gives its comptroller statutory authority to sell securities when the comptroller considers it practicable.<\/p>\n And this is precisely why liquidation deserves more attention than the initial dormancy period.<\/p>\n The permanent financial damage isn\u2019t necessarily caused when your shares enter the unclaimed-property system.<\/strong> It can occur when those shares are converted to cash.<\/p>\n An optimist would say these protect the consumer because financial institutions wouldn\u2019t mind holding onto assets indefinitely, especially if no one knows they exist.<\/p>\n The current system establishes an unclaimed property database that a person or their heirs could search. You\u2019d never be able to search ever financial institution yourself (nor would they be obligated to tell you).<\/p>\n The challenge is when property is claimed unexpectedly and, in the case of Peters, liquidated unnecessarily.<\/p>\n Why would states do this when they have to give you the property back anyway? Why take unclaimed property in the first place?<\/strong><\/p>\n Because it\u2019s a interest free loan between when they claim the property and when it is returned. And governments love interest free loans!<\/p>\n The issue has attracted enough attention that the U.S. Senate Banking Committee asked questions in April 2026 <\/a>about trends in state escheatment laws and whether changing standards were increasing the likelihood that people\u2019s property would be classified as unclaimed.<\/p>\n Fortunately, preventing this is pretty easy.<\/p>\n Instead, once or twice a year:<\/p>\nTable of Contents<\/summary>\n
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The Government Isn\u2019t \u201cTaking\u201d Your Stock<\/h2>\n
The $1.6 Million Amazon Stock Story<\/h2>\n
How Do You Avoid This?<\/h2>\n
Securities Unclaimed Property Rules by State<\/h3>\n
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\n \nState<\/th>\n Securities Dormancy Period<\/th>\n What You Can Do to Avoid Abandonment<\/th>\n<\/tr>\n<\/thead>\n \n Alabama<\/td>\n 3 years<\/td>\n Keep your contact information current and respond to communications from the holder.<\/td>\n<\/tr>\n \n Alaska<\/td>\n 5 years<\/td>\n Maintain contact with the brokerage\/holder and keep your mailing address current.<\/td>\n<\/tr>\n \n Arizona<\/td>\n 3 years<\/td>\n Maintain documented contact or activity with the holder and keep contact information current.<\/td>\n<\/tr>\n \n Arkansas<\/td>\n 5 years<\/td>\n Maintain contact with the holder and make sure statements and notices reach you.<\/td>\n<\/tr>\n \n California<\/td>\n 3 years<\/td>\n Contact the holder at least once every 3 years<\/strong> and immediately correct returned\/incorrect mailing information.<\/td>\n<\/tr>\n \n Colorado<\/td>\n 3 years<\/td>\n Maintain owner-initiated contact or activity and keep your mailing\/email information current.<\/td>\n<\/tr>\n \n Connecticut<\/td>\n 3 years<\/td>\n Maintain contact with the holder and respond to notices concerning the account.<\/td>\n<\/tr>\n \n Delaware<\/td>\n 3 years<\/td>\n Provide an \u201cindication of interest\u201d at least once every 3 years<\/strong>, such as qualifying owner-initiated contact or activity.<\/td>\n<\/tr>\n \n Florida<\/td>\n Special 3\/5-year rules<\/td>\n Keep mail from being returned and create qualifying owner-initiated activity at least every 5 years.<\/strong> Don\u2019t rely solely on automatic dividend reinvestment.<\/td>\n<\/tr>\n \n Georgia<\/td>\n 5 years<\/td>\n Maintain contact with the holder and make sure communications aren\u2019t returned.<\/td>\n<\/tr>\n \n Hawaii<\/td>\n 5 years<\/td>\n Maintain contact and keep your address and other contact information current.<\/td>\n<\/tr>\n \n Idaho<\/td>\n 5 years<\/td>\n Maintain contact with the holder and respond to account communications.<\/td>\n<\/tr>\n \n Illinois<\/td>\n Special 3\/5-year rules<\/td>\n Log in\/access account information or otherwise create an indication of interest.<\/strong> Keep mail deliverable. Don\u2019t rely solely on automatic dividend reinvestment.<\/td>\n<\/tr>\n \n Indiana<\/td>\n 3 years<\/td>\n Maintain owner-initiated contact\/activity and make sure the holder can reach you.<\/td>\n<\/tr>\n \n Iowa<\/td>\n 3 years<\/td>\n Maintain contact with the holder and keep your address current.<\/td>\n<\/tr>\n \n Kansas<\/td>\n 5 years<\/td>\n Maintain contact with the holder and respond to account communications.<\/td>\n<\/tr>\n \n Kentucky<\/td>\n 3 years<\/td>\n Create an owner-generated indication of interest and keep your contact information current.<\/td>\n<\/tr>\n \n Louisiana<\/td>\n 3 years<\/td>\n Maintain contact\/activity and respond to holder communications.<\/td>\n<\/tr>\n \n Maine<\/td>\n 3 years<\/td>\n Create an indication of interest in the account and keep mail\/email contact information current.<\/td>\n<\/tr>\n \n Maryland<\/td>\n 3 years<\/td>\n Maintain contact with the holder and promptly respond to any unclaimed-property\/due-diligence notice.<\/strong><\/td>\n<\/tr>\n \n Massachusetts<\/td>\n 3 years<\/td>\n Maintain owner contact and make sure the holder has a valid address for you.<\/td>\n<\/tr>\n \n Michigan<\/td>\n 3 years<\/td>\n Maintain contact\/activity and keep your address and other contact information current.<\/td>\n<\/tr>\n \n Minnesota<\/td>\n 3 years<\/td>\n Maintain owner-generated contact and respond to communications from the holder.<\/td>\n<\/tr>\n \n Mississippi<\/td>\n 5 years<\/td>\n Maintain contact and make sure statements\/notices continue reaching you.<\/td>\n<\/tr>\n \n Missouri<\/td>\n 5 years<\/td>\n Maintain contact with the holder and keep your mailing information current.<\/td>\n<\/tr>\n \n Montana<\/td>\n 3 years<\/td>\n Create documented owner contact\/activity and keep your contact information current.<\/td>\n<\/tr>\n \n Nebraska<\/td>\n 5 years<\/td>\n Maintain contact with the holder and respond to communications.<\/td>\n<\/tr>\n \n Nevada<\/td>\n 3 years<\/td>\n Maintain owner contact\/activity and make sure the holder can reach you.<\/td>\n<\/tr>\n \n New Hampshire<\/td>\n 3 years<\/td>\n Maintain contact\/activity and keep your address current.<\/td>\n<\/tr>\n \n New Jersey<\/td>\n 3 years<\/td>\n Maintain contact with the holder and respond promptly to due-diligence notices<\/strong> before property is reported.<\/td>\n<\/tr>\n \n New Mexico<\/td>\n 5 years<\/td>\n Maintain contact with the holder and keep communications deliverable.<\/td>\n<\/tr>\n \n New York<\/td>\n 3 years<\/td>\n Make sure statements and communications aren\u2019t repeatedly returned as undeliverable.<\/strong> Update your address immediately after moving.<\/td>\n<\/tr>\n \n North Carolina<\/td>\n 3 years<\/td>\n Maintain contact\/activity with the holder and keep your contact information current.<\/td>\n<\/tr>\n \n North Dakota<\/td>\n 3 years<\/td>\n Create owner-initiated contact\/activity and respond to account communications.<\/td>\n<\/tr>\n \n Ohio<\/td>\n 5 years<\/td>\n Maintain contact with the holder and make sure notices continue reaching you.<\/td>\n<\/tr>\n \n Oklahoma<\/td>\n 3 years<\/td>\n Maintain contact\/activity and keep your mailing and electronic contact information current.<\/td>\n<\/tr>\n \n Oregon<\/td>\n 3 years<\/td>\n Maintain owner-generated contact\/activity and respond to holder communications.<\/td>\n<\/tr>\n \n Pennsylvania<\/td>\n 3 years<\/td>\n Maintain contact with the holder and promptly respond to due-diligence notices.<\/td>\n<\/tr>\n \n Rhode Island<\/td>\n 5 years<\/td>\n Maintain contact and make sure the holder has current contact information.<\/td>\n<\/tr>\n \n South Carolina<\/td>\n 3 years<\/td>\n Respond to communications, keep mail deliverable and claim dividends\/distributions.<\/strong> Any owner communication can be particularly important.<\/td>\n<\/tr>\n \n South Dakota<\/td>\n 3 years<\/td>\n Maintain owner contact\/activity and keep contact information current.<\/td>\n<\/tr>\n \n Tennessee<\/td>\n 3 years<\/td>\n Create an owner-generated indication of interest and keep contact information current.<\/td>\n<\/tr>\n \n Texas<\/td>\n 3 years<\/td>\n Maintain contact\/activity and make sure holder communications reach you.<\/td>\n<\/tr>\n \n Utah<\/td>\n 3 years<\/td>\n Create an owner-generated indication of interest and keep your contact information current.<\/td>\n<\/tr>\n \n Vermont<\/td>\n 3 years<\/td>\n Maintain owner-generated contact\/activity and make sure the holder can reach you.<\/td>\n<\/tr>\n \n Virginia<\/td>\n 5 years<\/td>\n Maintain contact with the holder and keep your address\/contact information current.<\/td>\n<\/tr>\n \n Washington<\/td>\n 3 years<\/td>\n Keep mail\/electronic communications deliverable and respond when the holder attempts to confirm your interest.<\/strong><\/td>\n<\/tr>\n \n West Virginia<\/td>\n 5 years<\/td>\n Maintain contact with the holder and respond to communications concerning the account.<\/td>\n<\/tr>\n \n Wisconsin<\/td>\n 3 years<\/td>\n Maintain contact\/activity and keep your mailing and electronic contact information current.<\/td>\n<\/tr>\n \n Wyoming<\/td>\n 3 years<\/td>\n Create owner-generated contact\/activity and make sure the holder can reach you.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n Review Specific State Laws for Abandonment<\/h2>\n
Illinois: Where Logging In Matters<\/h3>\n
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New York: Returned Mail Is Important<\/h3>\n
South Carolina: Several Different Events Can Start the Clock<\/h3>\n
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Review Specific State Laws for Liquidation<\/h2>\n
Why Do These Laws Exist?<\/h2>\n
How to Keep Your Investment Accounts From Becoming Unclaimed Property<\/h2>\n