MarylandHB 07612025 Regular SessionHouseWALLET

Maryland Uniform Disposition of Abandoned Property Act - Revisions

Sponsored By: Sponsor information unavailable

Signed by Governor

Commercial Law - GenerallyAbandoned PropertyAgents and BrokersBeneficiariesChecksCircuit CourtsCivil Actions -see also- Small ClaimsClaimsCommunications -see also- ElecComm; Intergov; Telecom; etc.ComptrollerContracts -see also- ProcurementCryptocurrencyCybersecurityDeath -see also- Homicide; Murder; Wrongful DeathDebt ManagementDisclosureElectronic Commerce -see also- Electronic Funds TransferElectronic CommunicationElectronic DocumentsElectronic Funds TransferElectronic GovernmentEvidenceFinancial Institutions -see also- Banks; Credit Unions; etc.HearingsInsurance -see also- Health Ins; MAIF; Motor Vehicle InsInvestments -see also- SecuritiesNoticesPersonal PropertyPostal ServicePrices -see also- Consumer Price IndexRecords -see also- Land Records; Vital RecordsRetirement -see also- Mandatory RetirementSecuritiesTelecommunications and Information TechnologyTime

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 5 benefits, 3 costs, 3 mixed.

Account activity helps prevent abandonment

Beginning October 1, 2025, account access, qualifying deposits or withdrawals, and insurance-premium payments count as signs of ownership interest. An agent's actions generally count, except when the holder acts as agent; another person's message needs records showing the owner's knowledge of the property right. Covered deposits and financial-company funds have a 3-year clock starting from the later of the valid-address date or last qualifying activity. Traveler's checks keep a 15-year period. Holders not using first-class mail must try email within 2 years after the owner's last sign of interest.

Broader coverage and clearer state routing

Beginning October 1, 2025, Maryland's framework includes federally held property classified as unclaimed under federal law. Recovery is not guaranteed. A state-identifying code or description can count as an owner's last known address, even without a usable mailing address. ZIP-code rules help determine which state's law applies when records lack a specific physical address in another state. For insurance funds, the law removes the old recipient-address presumption but retains an insured-or-annuitant address fallback when the recipient's address is unknown and cannot otherwise be determined under the law.

Lower cutoff for skipping public notices

Beginning October 1, 2025, Maryland can skip publishing notice for unclaimed items worth less than $50, down from $100. This narrows the low-value exception, bringing items worth $50 to under $100 outside it. The Administrator can still publish notices for smaller items when doing so serves the public interest.

Simpler small claims and payment deadlines

Beginning October 1, 2025, Maryland can waive claim filing for property or payments worth $5,000 or less. The owner must appear in a holder's report, and the Administrator must reasonably believe that person is entitled to payment. Waived claims must be paid immediately. Other approved claims must be paid, or property returned, within 6 months after approval. When Maryland sells property, claimants receive the sale price without deductions for notice, sale, or service costs.

Maryland reserves funds for property claims

Beginning October 1, 2025, Maryland must retain funds at fiscal year-end for unclaimed-property technology costs, capped at $5 million. Covered costs include cybersecurity and unclaimed-property systems. The claims reserve changes from a $50,000 cap to the amount reasonably estimated to cover approved claims. These are reserves from program receipts, not a new appropriation or a charge to owners.

Certain gift cards stay outside coverage

Beginning October 1, 2025, gift cards described in Maryland's gift-card law are excluded from this abandoned-property law's personal-property definition. Cardholders cannot use this framework for those cards. The exclusion does not change the cards' redemption terms.

Unclaimed money pays government debts first

Beginning October 1, 2025, Maryland must apply unclaimed property or sale proceeds to identified or certified government debts before paying owners. This includes unpaid taxes owed to the State, a county, or a city. The old $100 thresholds are removed, so small amounts are covered too. The Administrator can check for enforceable debts without an owner filing a claim and must notify owners of offsets.

Unclaimed crypto gets sold for cash

Beginning October 1, 2025, virtual currency is presumed abandoned after 5 years without a sign of the owner's interest. The company holding it must sell it within 30 days before filing its required report. It must send the proceeds to Maryland. Owners can claim the proceeds, but cannot recover later increases in the currency's value from the company or the State.

Claimants face proof and court deadlines

Beginning October 1, 2025, claimants generally must use Maryland's form, verify its accuracy and completeness, and provide enough ownership evidence. The Administrator must approve or deny claims and notify claimants; denials must explain why and identify any additional evidence needed. A claim with no action after 6 months is treated as denied. Claimants can seek circuit court review within 90 days after a decision. If the Administrator does not act, claimants can sue after 6 months but must file within 1 year of filing the claim.

Insurers must check death records yearly

Beginning October 1, 2025, holders of covered insurance and annuity funds must check death files yearly and record review dates. Specified records, notices, or death-file matches establish knowledge of death unless strong evidence shows a matched person is alive. Beneficiaries and other entitled people must still make a contract claim; covered proceeds are presumed abandoned after 3 years unclaimed. The law also removes a clarification that automatic premium loans or other provisions keeping coverage from lapsing do not prevent policy maturity or termination after death or entitlement to proceeds. That repeal alone does not establish a payment change.

New abandonment rules for retirement accounts

Beginning October 1, 2025, payees count as owners of tax-deferred pension and retirement accounts under Maryland's abandoned-property law. Abandonment generally occurs at the later of two deadlines: a returned-mail deadline and an age-or-death deadline. The mail deadline is 3 years after the first undeliverable first-class mailing, or a qualifying second mailing within 30 days. The other deadline is the earlier of 3 years after age 72, if known, or 2 years after confirmed death when federal tax rules require distribution to avoid penalties. Holders must try to confirm death within 90 days of notice; holders not using first-class mail must try email within 2 years of the owner's last interest and promptly try registered mail in the cases the law specifies.

Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 185 • No: 0

Senate vote • 4/2/2025

Third Reading Passed

Yes: 46 • No: 0 • Other: 1

House vote • 3/13/2025