When money in a bank or building society is unclaimed for 15 years, the organisation can transfer the assets to the Dormant Assets Scheme (the Scheme).
This is a government and financial industry initiative that allows unclaimed funds to be used for social and environmental purposes where the owner cannot be contacted.
The Scheme has recently expanded to include some investment funds where the fund manager has been unable to get in touch with the owner.
Funds cannot be transferred to the Scheme until the bank, building society or other finance holder has made extensive efforts to trace the rightful owner.
Where this is not possible, the Scheme transfers funds to the Reclaim Fund Limited (RFL), which is a treasury-backed company that deals with the administration of the unclaimed money. RFL is responsible for distributing money to social or environmental causes.
If the owner comes forward and can prove they have title to the money, RFL is required to make a relevant payment to them.
Estate planning
When dealing with your estate or that of a loved one, it is essential to identify all of their assets. When making your own Will, you are advised to put together a list of all of your holdings. It is also worth checking that banks, building societies and other fund holders have up to date contact details for you.
If your account has become inactive, you should take steps to notify the fund holder that you still wish to keep your money with them.
Estate administration
If you are dealing with the estate of a loved one, you need to try to ascertain where all of their funds were held. This can be tricky if they did not leave a comprehensive list, and will generally involve going through their paperwork, correspondence and digital records.
If you believe that they may have held an account with a particular organisation, you can contact them in your role as estate executor or administrator and ask them to check their records and let you know if they have any holdings.
When to update records
It is particularly important to check that all asset holders have up-to-date details for you in the event of any significant life changes, such as moving house or a divorce, and also if the bank or building society undergoes a merger.
You should also review and update your Will and list of assets regularly, at least every five years or more frequently if your situation changes, for example, if you marry or have a child or grandchild, or someone in your existing Will dies.
Contact Us:
If you would like to speak to one of our expert estate planners, ring us on 01634 353 658 or email us at rob@pembrokewillwriters.com