A will can provide little information about what the deceased owned at the time of death. This month, Gabriel Swales highlights how easy it is for assets to be lost or overlooked…
When someone dies, it is the responsibility of the executor, or administrator if there is no will, to distribute the estate. One of their core responsibilities is to identify and value all of the deceased’s assets and liabilities.
Although a will may make clear who the executors and beneficiaries are, it might not offer a comprehensive list of what the deceased owned. This can result in executors failing to identify assets and them being left unclaimed.
This situation can also occur when an individual dies without making a will (known as intestacy). If little is known about the deceased and their financial affairs, assets can be lost.
What type of assets are typically lost?
There is potential for anything to be lost when someone dies without leaving comprehensive records, including bank or building society accounts, savings and investments, digital assets, pensions and property.
It is currently estimated there is in the region of £200 billion in accounts, held by financial institutions, that remain unclaimed.
This problem is set to be exacerbated by the fact much of our life, both personally and financially, is now conducted online. It makes locating assets after someone dies more difficult, as it is often the case that no physical paperwork exists.
The Dormant Bank and Building Society Accounts Act 2008 enables financial institutions that are part of the scheme to transfer money held in accounts that have been dormant for 15 years to a central reclaim fund. This is then responsible for managing the money, meeting any claims and passing on the surplus for reinvestment in the community through the Big Lottery Fund.
Under the terms of the act, money can be reclaimed at any time by those entitled to the account.
Should I instruct a solicitor to help me administer an estate and/or search for lost assets?
Acting as an executor or administrator brings significant responsibility – you can be held personally liable for failing to carry out your duties correctly. This can include substantial penalties from HMRC if all of the deceased’s assets are not declared on the inheritance tax return.
Instructing a solicitor removes the difficulties and stress involved in administering an estate and brings a professional approach to the complex business of identifying and recovering assets owned by the deceased.
At Taylor&Emmet, we have developed different techniques and processes to offer an unrivalled service for the identification of lost and unknown assets. Our thorough and rigorous checks have led to the successful repatriation of several millions of pounds. For example, we were able to discover previously unknown assets for one particular client worth £1.6 million.
For more information about administering a deceased estate or asset tracing, don’t hesitate to contact me on (0114) 218 4000 or email: inheritance@tayloremmet.co.uk
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