The regulatory landscape is shifting fast — here’s what’s changing and what it means for your compliance program.
By Maureen Grollman, Practice Leader — Dunbar
Unclaimed property law never stands still. Each year, state legislatures introduce new rules, adjust existing requirements, and expand enforcement mechanisms. For companies navigating compliance across multiple jurisdictions, staying ahead of these changes isn’t optional it’s essential. Here are five legislative trends that are reshaping the unclaimed property landscape heading into 2026.
- The Shift from “Return Mail” to “Inactivity” Standards
For decades, the primary trigger for securities dormancy was the return of U.S. mail as undeliverable. If a company sent statements and they came back as undeliverable, the account was deemed lost. But several states are now moving away from this standard in favor of an inactivity-based approach. Florida has already made the switch, meaning that even if mail is being delivered successfully, an account can be classified as dormant if the owner hasn’t had any customer-generated activity within the dormancy period.
This is a significant shift. Many investors, particularly those with long-term retirement or education savings accounts, adopt a passive approach by design. Under an inactivity standard, those accounts become vulnerable to escheatment simply because the owner hasn’t logged in or made a transaction. Holders should evaluate their customer base and determine which accounts may be at risk under these newer standards.
- Cryptocurrency Is Now Squarely in Scope
States are rapidly codifying virtual currency as a reportable asset class under unclaimed property law. While some states have added explicit provisions for “virtual currency,” others are relying on catch-all provisions that cover intangible assets not otherwise specified. A key operational question for custodians is whether cryptocurrency must be liquidated before remittance or can be delivered in its native form. Most states that have addressed this issue are requiring liquidation, a departure from how unclaimed securities are typically handled.
- Email-Based Due Diligence Is Gaining Ground
Traditionally, due diligence, the legally required outreach to property owners before an account is reported as unclaimed property, has been conducted exclusively by U.S. mail. But states are beginning to recognize that email communication is often more effective at reaching owners, particularly those that have opted into electronic communication. Montana recently adopted legislation allowing email-based due diligence when the owner has consented and the email address on file is valid. Other states are following as digital communication becomes the norm rather than the exception.
For holders, this creates both an opportunity and a compliance consideration. Email outreach can significantly improve response rates and reduce escheatment, but companies must ensure their email records are current and that consent requirements are met.
- Record Retention Periods Are Being Recalibrated
Record retention has been a growing burden for holders, with some states requiring companies to maintain unclaimed property documentation for a decade or more. In a positive development IConnecticut, which previously had no formal retention policy, has now established a ten-year standard — providing clarity where ambiguity once existed.
These changes highlight the importance of understanding state-specific requirements. A one-size-fits-all approach to record retention can leave companies either overinvesting in storage or underprotected during an audit.
- States Are Redefining “Last Known Address”
The concept of last known address determines which state has jurisdiction over a particular item of unclaimed property. Historically, this meant a physical mailing address sufficient for mail delivery. But a growing number of states — including Connecticut and Oregon — have broadened the definition to include any description, code, or indication of the state. This expansion gives states a wider basis for claiming jurisdiction, potentially increasing the number of properties subject to escheatment in those states.
“The pace of legislative change in unclaimed property has accelerated dramatically. Companies that review their compliance programs annually are better positioned than those that react only when an audit notice arrives.” — Maureen Grollman
What This Means for Holders
These trends point in a clear direction: states are expanding the scope of unclaimed property law, increasing enforcement, and raising the bar for compliance. For holders, the takeaway is straightforward. Review your compliance program against the latest requirements in every state where you operate. Evaluate whether your dormancy tracking accounts for new inactivity standards. Ensure your due diligence practices are current. And consider engaging an experienced unclaimed property partner to identify gaps before a state examiner does.
Dunbar helps companies across all industries navigate the complexities of unclaimed property compliance. Contact us at info@dunbargroup.com or visit dunbargroup.com to learn how we can help.