New Jersey’s Rules on Unclaimed Stock

      New Jersey’s Uniform Unclaimed Property Act, N.J.S.A. 46:30B-1 et. seq. governs abandoned property and defines abandonment periods for different types of property after which time the holder will turn same over to the State.  The Act addresses stocks at section 46:30B-31, where it states that there is a presumption of abandonment for stocks “three years after the earlier of the date of an unpresented instrument issued to pay interest or a dividend or other cash distribution, or the date of issue of an undelivered stock certificate issued as a stock dividend, split, or other distribution;  or if a dividend or other distribution has not been paid on the stock or other interest for three consecutive years, or the stock or other interest is held pursuant to a plan that provides for the automatic reinvestment of dividends or other distributions, three years after the date of the second mailing of a statement of account or other notification or communication that was returned as undeliverable, or after the holder discontinued mailings to the apparent owner, whichever is earlier.”

      Given the foregoing, if no claims are made on stock property within 3 years after the second mailing of a statement of account or other notification returned as undeliverable, or after the holder discontinued mailings to the apparent owner, then the property escheats to the State of New Jersey.  The State of New Jersey Unclaimed Property Administration (UPA) has all the necessary forms for filing and depositing this unclaimed property with the State.  If an individual suspects that they may have unclaimed stocks in New Jersey or in other jurisdictions, there are two free websites which can be used to search for such property:  www.MissingMoney.com and www.Unclaimed.org.

– Spencer J. Rothwell, Esq.

 

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