Bereaved families are being urged to check for forgotten savings, pensions and investments after National Savings and Investments (NS&I) admitted thousands of estates had missed out on money they were owed. NS&I is contacting around 34,000 bereaved families after failing to properly trace some deceased customers’ savings, with £367 million due to be returned to affected estates.
The case highlights a wider problem: money can easily go missing after death, from Premium Bonds and dormant savings accounts to old workplace pensions, investments and insurance policies.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “People can accumulate multiple bank accounts and pensions over the course of their lives and, when they die, it can be up to close family to try and track them down. This can be especially difficult if there is no will, or your loved one did not have their affairs in order.”
Start with paperwork and online records
The first step is to check paperwork, emails and financial records for clues, including bank statements, pension letters, tax documents, payslips, insurance policies and dividend statements. Morrissey said: “The first port of call should be a search of your loved one’s paperwork to see if you can find any statements, though this might be increasingly difficult as we do more online. Statements will tell you the name of the providers your loved one deals with, so you can contact them directly.” Executors should make a list of any providers, account numbers and policy details they find, even if the paperwork looks old.
Check for Premium Bonds and NS&I savings
NS&I products, including Premium Bonds, are a common area to check because many people hold them for decades and may not have regular paperwork. Families can make a bereavement claim directly through NS&I if they believe the person who died held savings or Premium Bonds. They should check for old holder numbers, bank payments, prize notifications and historic letters.
Use free tracing services
Free tracing services can help families search for missing accounts. Morrissey said: “The Death Notification Service is a service that you can input your loved one’s details and if they have an account with one of the providers using the service then they will get in contact with you. Gretel is another free service that will do a search on accounts under your loved one’s name and send you details.” My Lost Account can also be used to trace lost bank, building society and NS&I accounts.
Track down old pensions
Pensions are one of the easiest assets to lose track of, especially if someone changed jobs several times. Morrissey said: “In the case of pensions for instance, you could accumulate several pensions over the course of your working life as you move jobs and it is easy for one or more of these to go missing over time.” Families should look for old payslips, P60s, employment contracts, pension statements and letters from former employers. The Government’s Pension Tracing Service can help find contact details for workplace or personal pension schemes.
What documents will you need?
Financial firms will need evidence that the person has died and that the person contacting them has authority to act. Morrissey said: “These providers will need evidence that your loved one has died before they will deal with you so you will likely need documents such as the death certificate, grant of probate or a will that show you were authorised to act for them.” The HMRC bereavement helpline can also help with tax matters after someone dies, but HMRC must usually have been notified of the death first.
What if the estate was settled years ago?
If money is discovered after an estate has already been distributed, it does not 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 the claimant has 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. Morrissey said: “The process can be made easier by planning. No-one wants to think about their death but taking steps such as putting a will in place will give your family peace of mind that they are carrying out your wishes. Letting them know where you keep documents, such as bank statements or your will, could also be a huge help.” Families should also make sure pension expression of wish forms are up to date, especially after major life events. When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
