Hi Everyone! In the state of Michigan, escheat rules are 3 years of inactivity for all deposit type account, EXCEPT for automatically renewing term deposits. For automatically renewing term deposits, the escheat period is 15 years! Because we determine dormancy and escheatment by the membership as a whole rather than for each suffix on the members' account, we are running into problems. I consulted with the MCUL and here is the example they gave me......if we have a member who has only a share account and a term deposit and that member is inactive for 3 years, we are required to escheat the share account at the 3 year point, but hold the term deposit until the 15 year escheat period is met. Problem is, our membership agreement requires the share account in order to have any other accounts. If we did this, the member holding the term deposit wouldn't really be a member anymore because we would have escheated the share account. Do any other states have escheat rules like this? What are you guys doing to handle this?
March 30, 2011 - 2:36pm
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