Key Highlights
- National Savings and Investments (NS&I) is contacting around 34,000 bereaved families regarding missing savings.
- Pensions are one of the easiest assets to lose track of due to changing jobs multiple times.
- Executors should make a list of providers, account numbers, and policy details from paperwork.
- Free tracing services like Death Notification Service can help locate missing accounts.
The Hidden Treasure Hunt: Finding Lost Money After Someone Dies
Imagine you’re going through your loved one’s belongings after they’ve passed, trying to piece together their financial history. It’s a daunting task that often involves rummaging through paperwork, emails, and old documents in search of lost money. This is precisely what National Savings and Investments (NS&I) is doing by reaching out to around 34,000 bereaved families regarding missed savings totaling £367 million.
But this isn’t just about a one-off issue with NS&I; it highlights a broader problem in estate management.
People can accumulate multiple bank accounts and pensions over their lifetime, making it difficult for close family members to track down every single asset after death. This is especially challenging if the deceased didn’t have their affairs in order or left no will.
Where to Start: Paperwork and Online Records
The first step is to check your loved one’s paperwork, emails, and financial records for clues. Look through bank statements, pension letters, tax documents, payslips, insurance policies, and dividend statements. These documents can provide a list of the providers your loved one dealt with, making it easier to contact them directly.
Executors should create a comprehensive list of these providers, account numbers, and policy details.
Even if the paperwork looks old, it’s essential to keep this information organized for future reference. Remember, as we do more transactions online, traditional paper records may become increasingly difficult to find.
Checking for Forgotten Savings: NS&I Products
National Savings and Investments (NS&I) is a common area to check because many people hold them for decades without regular paperwork. Families can make bereavement claims directly through NS&I if they believe the person who died held savings or Premium Bonds.
To start, look for old holder numbers, bank payments, prize notifications, and historic letters. Use free tracing services like Death Notification Service to search for missing accounts. This service allows you to input your loved one’s details, and if they have an account with a provider using the service, they will contact you.
Tracking Down Old Pensions: A Common Asset to Lose Track Of
Pensions are one of the easiest assets to lose track of, especially when someone changes jobs several times. You could accumulate several pensions over your working life as you move between employers. The Government’s Pension Tracing Service can help find contact details for workplace or personal pension schemes.
Look for old payslips, P60s, employment contracts, pension statements, and letters from former employers. These documents will provide crucial information about the pensions your loved one held, making it easier to trace them down.
What Documents Will You Need?
Financial firms will need evidence that the person has died and that you have authority to act. You’ll likely need a death certificate, grant of probate, or a will that shows your authorization to proceed. The HMRC bereavement helpline can also assist with tax matters after someone dies, but they must be notified first.
What If the Estate Was Settled Years Ago?
If money is discovered after an estate has already been distributed, it doesn’t simply disappear. The executor or administrator may need to reopen the estate, collect the asset, and distribute it according to the will or intestacy rules. This can be more complicated if beneficiaries have moved, died, or if inheritance tax was paid at the time.
Families may need legal or tax advice, particularly where the sum is large or the estate was settled many years ago. For smaller amounts, providers may have their own process for paying late-discovered assets once they are satisfied of your authority.
How to Stop Money Going Missing
The easiest way to prevent problems is to keep a clear, up-to-date record of accounts, pensions, investments, and insurance policies. The process can be made easier by planning ahead. Taking steps such as putting a will in place and letting your family know where you keep important documents could be hugely beneficial.
Make sure pension expression of wish forms are up to date, especially after major life events.
When investing, remember that your capital is at risk and past performance doesn’t guarantee future results. These steps can help ensure that no money goes missing when the time comes.
