According to recent estimates, almost £1 billion will remain trapped in bank accounts held by people who die without leaving a will.
Without a legal document in place to outline their wishes, the allocation of people’s estates after their deaths can involve a long legal process.
While banks can release cash from a deceased person’s accounts, the total amount is capped and money can only be granted on a discretionary basis.
The amount also varies between banks, but the average figure during 2015 was between £20,000 and £30,000, meaning that just under £1 billion is still frozen while legal affairs are sorted.
The information has been revealed following a Freedom of Information request to Her Majesty’s Courts and Tribunals Service.
Earlier this year, research produced by unbiased.co.uk highlighted that 75 per cent of UK adults in their 30s do not have a will.
However, intestacy rules – which control who inherits assets if an individual dies without a will in place – mean that the distribution of assets for a deceased’s estate is decided upon at a later date, following an immediate freeze of their bank accounts.
This essentially means that family members can enter legal disputes over the allocation of a beneficiary, particularly when the amount of money being held in bank accounts is growing.
In order to avoid inheritance disputes occurring among their remaining friends and family members, people are being reminded that the best possible way to ensure their estate is managed in line with their wishes, after their deaths, is to seek professional legal advice when drawing up their wills.