A rise in fraudulent attempts to claim assets from unclaimed estates has been exposed in a recent BBC investigation, with the government removing details of thousands of unclaimed estates from its websites pending an investigation.
So how can you avoid your estate being lost or stolen after your death? Thrings Private Client Solicitor Sam Longmore takes a look at what has happened, and why it’s important to have a valid will in place.
What is Bona Vacantia?
Bona Vacantia is a legal term referring to property or assets without an no owner – literally meaning “vacant goods” in Latin – where the owner has either died without a will or because the owner cannot be identified and is subsequently passed onto the Crown rather than to heirs or beneficiaries.
The term is usually applied to situations involving unclaimed estates, abandoned property, or dissolved companies with no remaining members with claims often being made by the likes of partners, children, distant relatives, creditors or even charitable organisations linked to the deceased.
What happened?
Following an investigation by the BBC into an alleged multimillion-pound fraud, the government legal department’s Bona Vacantia division has temporarily removed the details of approximately 6,000 unclaimed estates in England and Wales from the gov.uk website, with the Ministry of Justice launching an investigation into fraudulent activity.
The expose reportedly found fraud involving the fabrication of wills that would be then used to obtain grants of probate that would claim millions of pounds from otherwise unclaimed estates.
It has since been reported that bank accounts belonging to several companies associated with suspected fraud have been suspended.
What does that mean?
Removing the list will help the government limit the amount of fraud on unclaimed estates but, with the presumption that it will have to eventually return, there could be changes to how the process works, attempts to bring in more security and more scrutiny as to avoid similar incidents.
Meanwhile, with no confirmation from the government about when the list could be republished, the change will impact professional heir hunters with no public access to the information and so more unclaimed estates could end up reverting to the Crown.
What can you do?
It is important to remember that fraudsters won’t just target high value estates. Any can be vulnerable if intestate, so it is important to take steps to ensure you are protected.
For those worried that their estates could be at risk, the first and foremost step is to get a valid will in place. This will not only help protect your wishes for the future once you are gone, with clear direction on how your estate should be handled and divided but has the potential to also ensure all inheritance tax efficiencies have been explored.
For potential beneficiaries to an estate, it is also worth seeking legal advice on how the estate is being handled and to check the right steps have been taken to ensure a smooth process.
Thrings’ Private Client lawyers are experts in supporting individuals and families with a range of personal matters that are important to you. Whether it relates to a family business, land or private wealth, their expertise is there to help plan ahead in all areas ranging from succession planning and trusts, to wealth management, Wills and probate. To find out more, please get in contact.
