At the end of June, the 2025 legislative sessions closed for all but a few states. As in past years, in 2025 a number of states proposed remarkably similar changes to their unclaimed property statutes, and identifiable trends emerged in both proposed and enacted legislation. While each state’s statutes may have had their own nuances, overall trends emerged that are likely to impact both holders and unclaimed property owners. To help companies obtain a better understanding of these trends, we’ve pulled together a summary of the notable trends that we’ve seen relating to unclaimed property in 2025.
Securities
Historically, the standard dormancy trigger for securities has been the return of one or more items of U.S. mail as undeliverable (RPO) sent to the owner of the securities. However, some legislation proposed in 2025 sought to repeal this standard, and in Florida it has been replaced with an inactivity standard. This means that unless the owner actively manages or accesses their account, it can be deemed dormant following a requisite period of inactivity. The state’s position appears to be that the RPO standard is outdated, as many owners now access their accounts and receive statements electronically. However, the risk is that many investors adopt a “set it and forget it” strategy with their investment accounts, especially those established as retirement or educational savings accounts. Florida’s approach may be perceived as aggressive and does not appear to consider previous recommendations raised via the Revised Uniform Unclaimed Property Act of 2016 (RUUPA), which would implement email communication, prior to the issuance of U.S. mail and an RPO standard to trigger dormancy.
Virtual currency
Another legislative trend noted in 2025 centered around virtual currency. At the heart of the legislation is the requirement by many states for the holder to liquidate the virtual currency prior to reporting. This raises several concerns for most holders. First, virtual currency is a volatile asset which can have large price fluctuations over short periods of time. This can put the holder in the difficult position of facing legal challenges from owners who face monetary loss as a result of liquidation. While some states have included provisions to protect the holders who liquidate and remit virtual currency in good faith, the risk of lawsuits, as well as reputational and monetary damages, remain. In 2025, the states that have enacted virtual currency liquidation requirements prior to reporting have included Colorado, Maryland, North Dakota, Rhode Island and South Dakota. Fortunately, Arizona and Oregon adopted provisions that allow the holder to deliver the virtual currency without liquidation prior to reporting, and similar provisions were considered in Alabama, California and Texas. Still, this may pose a compliance challenge for holder and states alike, regarding the transfer and custodial taking of virtual currency in its original form.
Pension and retirement accounts
Tax-deferred pension and retirement accounts were also the subject of unclaimed property legislation in 2025. Most states usually reference the Federal (IRS) required minimum distribution date, or RMD, for a determination of the age of abandonment. Accordingly, if the RMD is modified at a later date, there is no need for the state to update their statute. Washington astutely made the change to its statute by removing age 70.5 from its statute and replacing it with the RMD as the age of presumed abandonment for these accounts. Nevertheless, when Maryland updated the age for the presumption of abandonment this year, it opted to use age 72 rather than defer to the RMD. Colorado also changed its dormancy trigger for pension and retirement accounts in 2025, providing that these accounts are dormant three years after they become distributable if the owner has not corresponded or otherwise expressed an interest in the account.
Determining state of last known address
In 2025, several states followed the ongoing trend of redefining what constitutes a last known address for an apparent owner, which is used to determine which state has jurisdiction over the escheatment of an item of unclaimed property. Historically, a last known address was typically regarded as “sufficient for the delivery of mail.” In the past few years, many states have adopted provisions expanding the definition of last known address to include any description, code, or indication of the state. In 2025, Connecticut and Oregon adopted this new standard.
Use of email to notify owners of property
Another emerging trend is for states to allow, or require, holders to perform statutorily required outreach to notify owners of their property (due diligence) via email. In 2025, Montana adopted legislation that now allows email due diligence if owner has consented and the email address on file is valid. In addition, this year Connecticut adopted legislation that requires that emails be sent, regardless of the value of the property, if a holder has received an owner's consent for the electronic delivery of any notices that are required by law.
Statute of limitations and record retention
Over the past few years, the trend has been for states to increase statutes of limitations and record retention periods, furthering the burden for holders of unclaimed property. However, in 2025, Colorado and Connecticut both adopted holder-friendly provisions. Colorado shortened the period for which a holder is required to retain records, as well as the period during which the administrator can commence an action or audit, from 10 to six years after the report was filed. Connecticut, which historically has not had a formal record retention policy, also adopted a provision stating that a holder shall retain records for at least ten years after the date any report was filed, unless a shorter retention period is provided by the Treasurer. However, in addition to the information included in the report, Connecticut also requires that the holder retain any documentation for potentially escheatable property that was not ultimately determined to represent unclaimed property to ensure full compliance with the state laws.
Questions?
To learn more about recent trends in unclaimed property impacting your company, or other unclaimed property questions, reach out to a Baker Tilly unclaimed property specialist for guidance and assistance.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.
