Hi John,
I often have conversations with estate practitioner clients about the potential for abandonment of very low value US listed securities like these, that are worth less than the cost of a Medallion Guarantee stamp. While it’s not my call, and views differ, it’s a valid conversation to have with the estate administrators. Liberty and Vodafone spinoff Verizon come up a lot, and are often very low in value due to the terms of the deal that created them. Some estates want the closure, or feel they have to act, and instruct us to go ahead anyway, and either transfer the shares out of the Deceased’s name, or just have the stamp affixed to the transfer form; while others are concerned about throwing good money after bad and take a view on preserving the estate residue.
Abandonment of US securities will eventually lead the shares and any dividends to escheat – assets are flagged as dormant or abandoned, and passed to the Unclaimed Property department of the US State in which the company incorporates. Any shares are usually liquidated so what remains to be claimed – in perpetuity – is a cash sum that never changes and pays out no interest. Meanwhile post might keep coming over to the address the transfer agent has on file for years; but if the estate representatives take no action then the shares will, eventually, escheat, leaving the shareholder account inactive.
Louise Levene
Finders International