Callum Emmerson
Inheritance can sometimes become a complex process, especially when it is left unclaimed. In the UK, when an inheritance remains unclaimed, it goes through a specific legal process to determine the fate of the estate. Let’s explore the reasons an inheritance may go unclaimed, the procedures that are followed, and what eventually happens to the unclaimed assets.
Why an Inheritance Might Go Unclaimed
Several reasons can lead to an inheritance going unclaimed in the UK, including:
No Known Beneficiaries
The deceased may have passed away without leaving a will (intestate) and without any known heirs. This is often the case for individuals who have lost touch with family or have no living relatives.
Unaware Beneficiaries
Potential beneficiaries may be unaware of their entitlement. This can happen if the deceased did not communicate their estate plans or if the will is not discovered promptly.
Lost or Invalid Will
If a will is lost or deemed invalid, it can create complications in identifying and locating the rightful heirs.
Missing or Unreachable Heirs
Heirs may be missing or difficult to contact due to outdated information or living abroad, leading to delays in claiming the inheritance.
The Legal Process for Unclaimed Inheritances in the UK
When an inheritance is unclaimed in the UK, it follows a structured legal process:
Probate Process
The probate process is initiated to manage the estate of the deceased. This involves verifying any existing will, paying debts, and distributing the remaining assets. If no will is found, the estate is subject to intestacy rules.
Intestacy Rules
Under UK law, if a person dies intestate, their estate is distributed according to intestacy rules. These rules prioritise spouses, children, and close relatives. If no relatives can be identified, the estate is classified as unclaimed.
Referral to the Bona Vacantia Division
If an estate is unclaimed and there are no identified beneficiaries, it may be referred to the Bona Vacantia Division of the UK Government Legal Department. “Bona vacantia” means “ownerless goods” in Latin, and this division is responsible for dealing with unclaimed estates.
Bona Vacantia Process
Under circumstances of intestacy, the estate becomes “bona vacantia,” meaning “ownerless goods” in Latin. Here, it is managed by the Bona Vacantia Division of the Government Legal Department. The division is responsible for identifying any potential beneficiaries by conducting thorough searches and publishing the estate on the government’s unclaimed estates list.
Time Frame for Claims
Relatives have 12 years from the date the estate is accepted as bona vacantia to come forward and claim their inheritance, with interest. However, claims may still be considered for up to 30 years without interest.
What Happens to Unclaimed Estates?
When there are no known relatives and the estate remains unclaimed after the time frame, the process of escheatment begins. Escheatment refers to the legal process by which unclaimed estates are transferred to the Crown. These assets may be utilised for public purposes, contributing to government budgets and funding public services. Moreover, the funds may be used to support various government initiatives, such as healthcare, education and infrastructure.
Occasionally, charities may claim a portion of the estate if they can demonstrate a connection to the deceased or if the deceased had a known intent to support certain charitable causes. This allows for some flexibility in distributing assets in a manner that aligns with the deceased’s potential wishes.
However, if a rightful heir is discovered within the claim period, they can still recover the estate by providing adequate proof of their entitlement.
Conclusion
In the UK, unclaimed inheritances undergo a defined legal process, eventually leading to escheatment to the Crown if no heirs are identified. Understanding these procedures can help individuals plan their estates better and ensure their assets reach the intended beneficiaries. By taking proactive steps, you can prevent your inheritance from becoming unclaimed and ensure your wishes are honoured. For more, please read our other blogs and follow us on LinkedIn.