All About Escheatment

What is Escheatment?

Escheatment is the process where unclaimed or abandoned property, such as funds or securities in your Webull account, is transferred to the state. This typically occurs when there has been no account activity or contact with the account holder for a legally defined period set by each state, often referred to as the dormancy period.

For additional information, please visit sec.org and the NAUPA.

How can I prevent escheatment?

To avoid escheatment (the transfer of unclaimed assets to the state), it’s important to keep your account active and up to date. Here’s how:

• Log into your account regularly: Logging in shows activity and helps prevent the account from being marked as dormant.
• Update your contact information: Make sure your email address, phone number, and mailing address are current to receive important notifications.
• Respond to all communications: If you receive a Sovos letter or any notice about your account, respond promptly. This begins a 30+ day “due diligence” period during which you can take action to retain your assets.

If no action is taken during the due diligence period, restrictions may be placed on the account, and assets may no longer be claimed.

Why did I receive a letter about my Webull account?

The letter is usually required by state laws to notify you about unclaimed assets in your Webull account. These letters are sent to inform you that your account may be at risk of escheatment due to inactivity. We recommend mailing the letter back, but you can also simply log into your Webull account to keep it active.

What happens if my account is escheated?

Any unclaimed funds or assets in your account will be sent to the state as unclaimed property.

You will no longer have direct access to those funds through Webull, but you can contact the state’s unclaimed property office to reclaim them. Please note that the process of transferring funds to the state after escheatment can take some time, as it depends on state laws and the brokerage's reporting procedures.

For information on how to reclaim your property, refer to the National Association of Unclaimed Property Administrators (NAUPA).