This bill stops a custodian from turning over certain investments to a State as unclaimed property unless specific time and contact rules are met. Covered assets include securities, digital assets recorded on cryptographically-secured ledgers, and investment accounts (but not ERISA employee benefit plans). For accounts owned by a natural person, a custodian generally cannot yield custody unless it has confirmation of the person's death at least 3 years earlier, no estate fiduciary has expressed interest for at least 3 years, and, if another natural person has an ownership interest, that other person is also confirmed deceased. For accounts owned by non-natural persons (for example, corporations), the custodian cannot yield custody unless it has had no record of contact with a representative for at least 5 years. The bill also requires custodians to check death records for customers who have reached retirement age: at the end of 5 years after the last recorded contact and every five years after that, the custodian must compare its records with a State or Federal database of deaths. A custodian may confirm death by getting a death certificate or other legal documents it finds sufficient. The bill preempts any State rule that conflicts with these requirements, but it says it does not stop States from communicating with custodians or owners, and it does not block remedies for improper escheatment. The rules apply to covered assets held on or after the date the bill becomes law that have not already been turned over to a State.
No publicly available information.
The bill says it is intended "to prevent the premature seizure of an individual's securities, digital assets, or investment accounts in the custody of a financial institution under State escheatment laws." Supporters present the measure as protecting owners and beneficiaries from premature transfer of these assets to a State.
No publicly available information.