When Wills Fail. The Hidden Fortunes of Intestacy and Unclaimed Estates

Every year in the UK, hundreds of millions of pounds in money and property slip quietly into the hands of financial institutions and the Crown. Not because of fraud or wrongdoing, but because people die without valid wills, or because their heirs can’t be traced. This is the shadow side of intestacy, a system designed to distribute estates fairly, but which in practice often benefits everyone except the family of the deceased.

The Scale of the Problem

It is estimated that around £1.2 billion of assets in bank and financial institution accounts remain unclaimed each year in the UK. These are funds that lie dormant, untouched, often because no one knew they existed or because no executor was ever appointed to claim them.

Meanwhile, unclaimed property – homes, land, and investments – worth an estimated £40–£50 million annually passes to the Crown through a process called bona vacantia (Latin for “ownerless goods”). These estates sit on the Bona Vacantia list, published by the Treasury Solicitor, for up to seven years while potential heirs are invited to come forward. If no one claims the estate, it becomes the property of the Crown.

While these figures are widely quoted, the government does not release exact annual totals, so they should be treated as indicative rather than definitive.

Where Does It All Go?

When unclaimed estates pass to the Crown, they don’t disappear, but nor are they put to social use in the way many people might expect. The Treasury Solicitor manages these assets on behalf of the Crown. Eventually, they are passed to the government’s Consolidated Fund – essentially, the national bank account that underpins public finances.

However, these funds are not ring-fenced or redistributed directly for public benefit, such as social housing, healthcare, or community projects. They are absorbed into general government revenue. In other words, they bolster the nation’s balance sheet but leave little visible legacy.

This raises an uncomfortable question: if the state and financial sector are quietly profiting from lost legacies, shouldn’t more be done to reconnect these assets with the families, communities, or social causes they came from?

Why Do Wills Fail?

Wills fail for several reasons:

• They were never written at all (about 60% of UK adults don’t have one)
• They were invalidated by marriage, divorce, or improper witnessing
• Executors never applied for probate
• Beneficiaries couldn’t be located

When this happens, the estate passes under intestacy rules, a strict legal hierarchy that determines who inherits. If no living relative qualifies, the estate becomes ownerless, and the Crown steps in. See Cestui Que Vie Act 1666 and Presumption of Death Act 2013.

The Financial Institutions’ Role

Banks and insurers are required to maintain dormant account systems, but vast sums still go unclaimed. Some of these funds are transferred to the Reclaim Fund Ltd, a government-backed organisation that redistributes dormant money through community investment projects. However, the majority of unclaimed balances remain in financial circulation, effectively becoming working capital for banks until claimed.

This system has improved transparency, but it still raises ethical questions. Should financial institutions benefit from the estates of the deceased? Should there be a national tracing service to reunite assets with heirs or to repurpose unclaimed estates for public good?

The Bona Vacantia List – How to Check

If you think a deceased relative might have left an unclaimed estate, you can search the official Bona Vacantia list for free. It’s published by the Government Legal Department and updated weekly:

Claim or refer an unclaimed estate – GOV.UK

You can also search through The Gazette, the official public record of wills and probate notices:

Find unclaimed estates in The Gazette

Some genealogical researchers, often called heir hunters, offer to trace potential beneficiaries for a commission – typically between 10% and 20% of any inheritance recovered. While they can be helpful, anyone approached by such firms should check their credentials carefully and consider seeking independent legal advice before signing an agreement.

Can You Claim Unclaimed Property?

Interestingly, there are circumstances where unclaimed or neglected property can be legally claimed through adverse possession, often referred to as “squatters’ rights.” If someone occupies land or a property, maintains it, and treats it as their own for a continuous period (usually 10 years for registered land or 12 years for unregistered land), they may be able to apply for legal ownership.

However, the rules are strict. The occupant must demonstrate clear possession, responsibility for upkeep, and the intention to own the property. The Land Registry will notify the current owner or the Crown (in the case of bona vacantia land), giving them the chance to object. If no objection is made, ownership can legally transfer.

In practice, this means that a disused property left unclaimed by an intestate estate could, in time, pass to a person who cared for it, but the process is complex and should be handled with professional legal advice.

A Better Use for Unclaimed Estates?

Imagine if unclaimed properties were redirected to the social housing sector. Each year, thousands of unoccupied homes, often modest terraces or flats, are left sitting in probate limbo or under Crown ownership. Redirecting even a fraction of them could relieve housing pressure and honour the memory of those who left no heirs by contributing something lasting to society.

A national conversation about how unclaimed estates are managed is long overdue. Transparency, fairness, and public benefit should be at the heart of the system, not quiet absorption into financial or government accounts.

The Real Lesson of Intestacy

The easiest way to keep your estate out of government hands is to make a valid, up-to-date will. A properly executed will ensures your assets reach the people, charities, or causes you care about – not the Crown, not the banks, and not the Treasury’s bottom line.

At Conwy Wills and Trusts, we help you take control of your legacy, so your wealth serves your family, not the state.

📞 01492 463218

📧 admin@conwywillsandtrusts.co.uk

🌐 www.conwywillsandtrusts.co.uk

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