Help with ReClaimed Funds

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ThrowAway1921
Posts: 11
Joined: Sat Sep 24, 2016 9:30 am

Help with ReClaimed Funds

Post by ThrowAway1921 » Fri Dec 07, 2018 10:35 am

So my fiancé has always talked about “stocks” her grandfather had invested for her. Long story short, we sent out close to 100 unclaimed funds claims to the comptroller and have been having them slowly trickle in. He died over 10 years ago and they had all gone in to unclaimed territory.

A substantial number of stocks have come in, among them about 1000 shares of AT&T, which pays over a 6% dividend.

My question is, what happens to these dividends? Over 10 years we are looking at 10-15k worth of dividend payments.

Sorry for the dumb question, but I cannot find this answer anywhere.

not4me
Posts: 472
Joined: Thu May 25, 2017 3:08 pm

Re: Help with ReClaimed Funds

Post by not4me » Fri Dec 07, 2018 11:02 am

I don't think it is a dumb question & not sure I have the best answer. To start with, I'd make sure that the state didn't receive them & pass them along. If not, I'd look on web site for that company (like an ATT) & find their transfer agent & contact them. Many use Computershare & you might be able to handle multiple? Was there a a will? executor? I'm sure there will be a need for documentation regarding who has rightful claim. This assumes these stocks weren't all held in a brokerage account. If they were & you can determine that, you might want to go there before the transfer agent. Good luck

ThrowAway1921
Posts: 11
Joined: Sat Sep 24, 2016 9:30 am

Re: Help with ReClaimed Funds

Post by ThrowAway1921 » Fri Dec 07, 2018 11:10 am

It actually is in ComputerShares. The funds were custodial so her name was on them as well. It’s weird how it’s workung, they just appear in the ComputerShares account, no contact or anything.

There is a good chance that a lot of the cash we are getting are unclaimed dividends from awhile ago, but what about the payment of say Q4 2017? Too recent to go to unclaimed funds but we are still entitled to these payments, right?

not4me
Posts: 472
Joined: Thu May 25, 2017 3:08 pm

Re: Help with ReClaimed Funds

Post by not4me » Fri Dec 07, 2018 11:26 am

ThrowAway1921 wrote:
Fri Dec 07, 2018 11:10 am
It actually is in ComputerShares. The funds were custodial so her name was on them as well. It’s weird how it’s workung, they just appear in the ComputerShares account, no contact or anything.

There is a good chance that a lot of the cash we are getting are unclaimed dividends from awhile ago, but what about the payment of say Q4 2017? Too recent to go to unclaimed funds but we are still entitled to these payments, right?
I can't think of a reason why you wouldn't be entitled to dividend for any share you are entitled to. With her name also on the account, it should be easier than otherwise. Perhaps states just notified them the funds could now be considered "claimed". I'd just call Computershares & ask them. If before he was deceased he had dividends reinvested, it may have accumulated shares instead of cash. They should have the history (assuming they were transfer agents when he passed away). I would expect they could give an account of how much came in when.

Don't forget the dividends will be taxable. They may have been reported to IRS under the grandfather's ssn -- at least up until they were escheated to state. Don't know how they'll handle retroactively. Again, hopefully Computershares can tell you. As dust settles, the cost basis needs to be determined for if/when the shares are sold.

ThrowAway1921
Posts: 11
Joined: Sat Sep 24, 2016 9:30 am

Re: Help with ReClaimed Funds

Post by ThrowAway1921 » Fri Dec 07, 2018 11:47 am

I guess you’re right regarding just calling them. The company isn’t very easy to work with, but gotta do it I suppose.

They weren’t reinvested, I don’t believe, as the DRIP programs have a fee associated and I don’t see any partial shares.

The tax basis is apparently reset on the death date, this is based on UTMA laws, which I did research.

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