Article provided by Yvette Jacobs-Lee, Private Client Tax Partner at Moore Kingston Smith, for Beacon Gainer, private wealth advisory services group.
Where a person dies without a Will or clear heir, their estate is listed as ‘unclaimed’. If no legitimate claim is made within 30 years, the estate passes to the crown. With some 7,300 unclaimed estates in the UK currently, this is an area of concern – particularly as 2020 saw a 33% increase over 2019.
It is important to make a Will and keep it up to date. The person’s estate will then pass in accordance with their wishes. It also takes away any uncertainty for their family and friends. Additionally, loved ones should know where the person’s Will is kept. There are cases where a Will does exist but cannot be found, which leads to all manner of complexities.
Getting a Will underway and executed does take sensitivity and diplomacy, so it is a good idea to get professional impartial guidance from an adviser used to handling delicate situations.
The increase in unclaimed estates could have various explanations. One is that there is no surviving spouse, either due to couples not formally tying the knot or the deceased being already widowed. Another is simply procrastination when it comes to getting one’s life’s affairs in order. Sadly, the pandemic will also have had an impact.
Some £1.7 billion of these unclaimed estates comprise vacant properties, with London and the South East being hotspots. The irony is that there is a housing shortage in the UK but that is a whole separate debate far outside the scope of this commentary.
Having a Will ensures that the beneficiaries named receive the inheritance that is rightfully theirs while avoiding unnecessary delay and unpleasant disagreement.
