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All states have rules governing so-called "abandoned property." Financial institutions, including brokerage firms, banks, and transfer agencies, are required to report personal property that has been abandoned and then remit that property to the state.
Your mutual fund account (including the fund shares and any uncashed distribution checks in the account) may be considered abandoned if certain criteria are met, such as mail being returned as undeliverable or a certain number of years elapsing since you initiated any contact on the account.
Once property meets the abandoned property requirements in your state of residence, it must be turned over to the state in a process known as "escheatment."
Receiving an abandoned property notice is disconcerting, however if you act in a timely manner, you can protect your property. Abandoned property notices are primarily sent as a result mail being returned as undeliverable or a certain number of years elapsing since there was any activity on the account. If you do not make your account active or respond to the notice, your property may be escheated and turned over to your state’s unclaimed property division. Thankfully, escheatment is preventable. If you receive a letter, telephone call or e-mail attempting to re-establish contact with you, please respond to the notice.
Contacting Calvert at least once a year ensures that your accounts are protected from escheatment.
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