Dormant Account May Go To State

[Aditya]

Ms. Brewer,

Thank you for your time.  My Mom is named as a joint owner of Lucent stock.  This is something my Dad, now deceased, purchased for them.  My Mom got a letter stating that unless she supplies a social security number and current address they will mark the account dormant, and transfer the funds to the state.  Mom says that she called Lucent, and gave them her information, but Lucent does not recognize her SSN even though they have her name listed on the account.  So the account is still dormant.

What does she have to do to protect this money?  

[Cavan]

If your father was a joint owner of the account, your mother probably has to clear his name off the account.  Every company has a slightly different way of doing this, but she probably has to provide the "transfer agent" with a certified copy of your father's death certificate.  She probably also has to also provide something called an "Affidavit of Debts and Domicile" and a "medallion stamped" or "signature guaranteed" letter of instructions.

Based on a quick Google search, it looks to me like First Chicago Trust Company of New York is Lucent's transfer agent.  You can contact them a P.O. Box 2500, Jersey City NJ  07303.  You can also telephone Shareholder Services at(800) 756-8200.  If that fails, I would write directly to the CEO, whose name is Ben Verwaayen.  I'm not sure where he's located; I presume it's at the headquarters in Paris.  Explain your problem(briefly & to the point, like you did here); he can probably get you to the right person to help you.

Each company has its own form for the  Affidavit of Debts and Domicile, but they are all pretty much the same.  You can find samples by googling the term.

Usually, the death certificate and the Affidavit are the only things required to transfer the stock into your mother's name.  Some companies also require a "Letter of Instructions" and want that letter "medallion stamped" or "signature guaranteed".  The letter is simply a statement saying "remove my husband's name from the account; set the account up in my name alone".  A bank(not a savings & loan or a credit union) can provide the signature guarantee(see a manager).  So can a brokerage firm.

Your mother might also be required to provide a new W-9 changing the social security number on the account from your father's to hers.

The best way to make sure the company gets all of this information is to send them the info in writing, certified return receipt.  Send it either to the transfer agent or to the head of the Shareholder Services dept. at the company.  Again, if you still have problems, send it to the CEO - it virtually always gets to the right person if you do that!

Another problem you may encounter:  Lucent has had a number of mergers, acquisitions, and spinoffs(for example, it just merged with Alcatel a year or so ago & new stock was issued).  There's probably other stock out there that needs to be changed, too(for example, Avaya, an earlier Lucent spin off).  So prepare yourself for having to take these same steps on other stock that your mother might not even realize she owns.

This information is not intended to substitute for professional legal advice and does not create an attorney-client relationship. You should accept legal advice only from a licensed legal professional with whom you have an attorney-client relationship.