Trouble Claiming CD Grandparent Opened As Custodian While I Was A Minor

Mark Rackow | Jun 9, 2016 | 4 posts since 2016

The other week my Dad found a COD slip from April '95 that my grandparent opened as custodian for me as a minor.

The COD states the maturity date was October '98, and notes the renewal policy as "Automatically Renewable: New rate will be determined on maturity date."

I went into the bank to see what the status of this CD was. They said they have no record of it, that they destroy their records after 7 years, and that they probably tried to contact me or my grandparent at some point; we should check his estate or state treasury department sites for lost money.

My grandparent died in 2001 and I don't ever recall seeing correspondence on this; I don't know if they tried to contact anyone, and the paper I have marked COD doesn't say paid on death, or anything about the account expiring.

In the end they said there's nothing they can do, and the slip I have (which notes the dates, my SSN, the amount, the rates, interest payment annually added to principal, and is signed by an officer of the bank) is only a "receipt" - that without them having a record of it under my SSN or by examining the slip... they can't say if I already cashed it out, or if it ever existed.

This doesn't seem right and I want to determine my next steps to get this bank (Parkway Bank) to cooperate, but first wanted to hear opinion from here on the situation in general, and any advice you might have - thank you

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Answers

OAG | Jun 11, 2016 | 23 posts since 2010

Just to clarify, as previously stated, you have to get to the current list or older lists for the state where the BANK/CU is registered not the states you lived in or the grandparent unless it is the registered state.

FYI I personally found money after 18 years on a current list of a state (IL) filed and collected it.

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me1004 | Jun 9, 2016 | 1,379 posts since 2010

One thing to check is your state lists of unclaimed property. Banks have to turn over money from accounts if they have no contact from owners after a certain number of years. So, you might find that on that list. However, after so many years, that list might even no longer be available. And even if the list is available, the funds might no longer be claimable.

But the other point you suggest also might be true: While you have the original receipt from this opening, your grandparent also might have closed it -- that person didn't die until three years after this CD matured.

I'm not surprised the bank would not have records of a CD that might have been closed 18 years ago.

One final longshot: the IRS. As I understand it, the money in a custodial account is your's and taxable to you. The bank will have had to send 1099 forms to the IRS. I don't know if older IRS records like that would be available, I'm doubtful. But you might also see if you can get some info that way, see if the CD was reporting interest maybe until 2002 or later. But again, I'm doubtful you would be able to get info on 1099 filings from the IRS, especially that long ago.

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Mark Rackow | Jun 9, 2016 | 4 posts since 2016

Thank you for the response - that's similar to what the bank just reiterated to me when I called again. Check the states, after 5 years they have to surrender the money to the state; or my grandparent closed the account (I doubt it and don't remember getting any sort of $, but maybe - it does seem odd though that they'd have my parents holding onto the COD paperwork rather than himself if that was his intention). The state sites (I checked a few states since I moved around, plus my grandparents home state) don't have anything listed for any of our names. The IRS tip is interesting. It's astonishing CDs get dumped so quickly, especially if it's automatically renewable upon the maturity date; and that the money just disappears? The bank is incredibly clear by their tone and responses that they're done with this before I even finish talking.

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Mark Rackow | Jun 9, 2016 | 4 posts since 2016

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me1004 | Jun 10, 2016 | 1,379 posts since 2010

You know, I also amount sure what a COD is. This is a custodial account, the OD throws me. Is that an account where a secondary custodian is listed in the event of the death of the primary custodian? If so, that might be why your father had it, he was the listed subsequent custodian. And if he got it at your grandfather's death, I can see how that could get lost and overlooked in an avalanche of inheritance paperwork and issues, go dormant and eventually be escheated to the state.

The state we are talking about would be the state where the account is held by the financial institution.

Re why this would happen even though the CD were set for automatic renewal, this is the difference between dormancy and abandonment. Many financial institutions have rules about dormancy and what you must do to keep your account active, and typically an automatic renewal of a CD would keep it active. But regardless of that, states have laws regarding abandoned bank accounts and other financial products. You must have a contact with the institution at least once within a certain number of years (the state you are talking about apparently sets that at five years, some others do it at seven years, I imagine other states have other time frames). Your's might have ended up abandoned for lack of any contact. Possibly the only contact the bank had was your grandfather's, but he died so they couldn't even get in touch with him.

That list I'm talking about is the final effort to let the owner know the money is being taken by the state and to give a chance to claim it. If you don't claim it within the specified time frame, it is lost to the state.

We presumably would be talking of an old, outdated list. You were probably being shown the current list, not the older ones that you would have been on -- the lists expire after the legal time frame and your money is lost. What you would want to try to get, if it still exists, is the older lists from the years that could be pertinent -- theoretically no more than five years after your grandfather's death, so from 2000 (five years from your 1995 date) through 2006. The state might or might not hold the old lists, but my experience in life is that the first people you speak with at the state will tell you all kinds of things, and likely the supervisor will too, only the people deeper in the background will really know whether the older lists still exist -- because this issue never or nearly never comes up. Still, finding them and even finding your name on them will only be informative, the money would still be finally lost to the state.

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Mark Rackow | Jun 9, 2016 | 4 posts since 2016

similar thread: https://www.depositaccounts.com/community/ask/20802-track-cd.html

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