Conflicting State Laws: Whose Money Is It?
The first rule in determining which state is entitled to unclaimed property is governed by the last known address of an owner. Thus, the question becomes, how do states define “last known address”? Originally, states’ unclaimed property laws generally required an address that was sufficient for the delivery of mail, but those rules are changing.
By way of example, the state of Delaware no longer requires an address sufficient for the delivery of mail but now requires a description or code that includes two of the following three address indicators: city, state, and zip code.
Delaware’s change affects how holders apply the last known address in unclaimed property standard, especially when complete address data isn’t available.
In contrast, the state of Connecticut, which also required an address sufficient for the delivery of mail, has recently revised its definition of last known address, through legislation became effective July 1, 2025, to require a single description, code, or other indication that identifies the state of an owner.
As more states redefine the last known address in unclaimed property requirement, holders must pay close attention to which state rightfully claims the funds.
The sourcing of unclaimed property to an owner’s correct address is a critical step in ensuring that lost owners can be reunited with their property, which is a fundamental principle of the unclaimed property laws. Incorrect sourcing can also negatively impact estimation results in audits and VDAs.
If your company is unsure how to apply the last known address in unclaimed property standard under these conflicting laws, Clarus Partners is here to help.
Contact Clarus Partners
For help with identifying the correct reporting state, or any other unclaimed property issues, reach out directly to:
Sonia Walwyn, Partner
📧 swalwyn@claruspartners.com
📞 (630) 216-9954
Sonia is ready to share her over 30 years of unclaimed property experience with you and, together with our expert team, can assist with jurisdictional questions, as well as overall risk assessments, audit defense, voluntary compliance (VDAs/self-reviews), annual reporting, and drafting policies and procedures to ensure effective and timely compliance.