"Untouched" Private Funds Being Seized By Government

The government of Australia has seized more than 360 million dollars sitting in bank accounts and safe deposit boxes around the nation. In the United States, governments in all 50 states are also looking at changing laws, making it easier for them to seize private funds.

If accounts or safe deposit boxes are not used for a certain period of time, any funds or property contained in them becomes property of the state government. In most states, that waiting period used to be seven years.

Most states don’t check to see if the holder is still alive, or if they have other active accounts at the bank before seizing funds. Even if a customer has an active checking account at a financial institution, not touching a safe-deposit box for a time can trigger a seizure. This lack of diligence in identifying owners appears to be a conscious decision by agencies to seize more funds.

A lawyer for the California Bureau of Unclaimed Property wrote in an internal memo, “[Searching for rightful owners] could well result in additional claims of monies that would otherwise flow into the general fund.” (1)

In Australia, the national government in Cabrerra has already taken possession of more than 360 million dollars.

Billions of dollars in cash is being taken on a regular basis from bank accounts. Other valuables, including stocks, bonds and other precious items are being taken from safe deposit boxes.

Many of these confiscations are the result of shortening waiting periods before property is considered abandoned. Limits that once stood at seven to 15 years are now being shortened to as little as 12 months. Georgia is one of the states that has adopted the one-year benchmark. The state of Wisconsin has recently started selling unclaimed property through an online auction.

Americans used to be advised to put money into a savings account and forget about it. Now, it seems following that advice could be a road to financial ruin.