Escheat show (Update)

This Planet Money episode investigates "escheat," the process by which states claim unclaimed assets. The podcast uses the story of Walter Schramm, whose forgotten Amazon stock was escheated by Delaware, to illustrate the system's flaws and potential for abuse. It highlights how states utilize escheated funds, often without adequately notifying owners, and discusses the ongoing legal battle Schramm is waging. Listeners are encouraged to check their state's unclaimed property website; the podcast notes that listeners have collectively recovered over $38,000 in unclaimed funds since the episode's initial airing. The episode ultimately raises concerns about the balance between protecting consumers and the potential for states to profit from unclaimed assets.

1. 00:00:17

   Introduction: Walter Schramm's Lost Amazon Stock

   This chapter introduces the story of Walter Schramm, an Italian businessman who invested in Amazon stock in the late 1990s and lost track of it. The narrative sets the stage by highlighting the unexpected loss and the initial shock of discovering the missing investment. The introduction also foreshadows the exploration of the "escheat" process, a government program for handling unclaimed property.

2. 00:04:17

   The Escheat System: How States Claim Unclaimed Property

   This section delves into the escheat system, explaining how state governments claim unclaimed assets like stocks, bank accounts, and paychecks. The core focus is on the process of escheat, including the timeframes for declaring property abandoned and the role of state unclaimed property departments. A key takeaway is the existence of state websites where individuals can search for unclaimed property; the hosts demonstrate this by searching for unclaimed property belonging to one of them.

3. 00:15:03

   Analysis of the Escheat System and Walter Schramm's Case

   This chapter analyzes the potential flaws and conflicts of interest within the escheat system. The discussion centers on the concerns that states may prioritize revenue generation over returning funds to rightful owners. Walter Schramm's case serves as a prime example of the system's shortcomings, highlighting how the state of Delaware liquidated his Amazon stock in 2008, significantly reducing its value before he could reclaim it. The chapter concludes with updates on Walter's legal pursuit to recover the full value of his stock and the significant amount of unclaimed property Planet Money listeners have collectively recovered.