Inheritances are vanishing for good without a trace as more and more people do their banking online or via mobile apps - with loved ones unable to locate the savings when they die.
Cash held in Bitcoin and other cryptocurrencies may also be lost forever, with no way of tracing where they are locked up.
As every year passes, millions of pounds worth of financial assets are lost due to people not keeping a record of them in their will. The problem is ever-growing in today's society, with many opting to conduct their financial activities digitally - without leaving a physical paper trail for families to sort through once they're gone.
Read more: Barclays issue urgent warning on money scam which could land you a 14-year prison sentence
The Daily Express reports that almost £5billion worth of inherited wealth is now sitting unclaimed, according to new research from dormant asset holders - The Reclaim Fund. This is a substantial sum that people will never locate if stored solely on apps, online trading platforms, and offshore cryptocurrency accounts.
Bank accounts, savings, shares crypto products and other sources of wealth through investment can prove tricky to track when people pass away - and in some cases, loved ones may not even know they exist at all, said Jenny Walsh, who is a partner specialising in wills and probate at Osbornes Law.
This is because the person who owned and managed the financial sums never disclosed where they existed, as well as how to track them down. Jenny also added that families are increasingly searching for help on asset searches upon death - in a desperate hunt for lost wealth.
She said: "With a growing number of people having digital assets and not getting any paperwork in the post, more and more are struggling to find a deceased’s assets when they die."
While there are certain ways that people are able to hunt down these assets, the process can prove to be extremely costly - setting parties back hundreds and hundreds of pounds. The stress and anxiety of the situation is also problematic, with families waiting to discover if the money can actually be found.
The task is also made tougher when individuals have assets abroad, as certain platforms operate on completely different jurisdictions. Often the money can be worth a small fortune, but people simply don't know the exact figure, or how to get a hold of it.
Overseas assets are tricky to trace unless you have some idea where the account may be, Jenny warned: “You need to have some connection with a particular country, such as knowing the deceased had a bank account there.
"I have dealt with estates where a considerable amount of money has potentially been lost because the family has some idea that the deceased was wealthy but no idea where the money could be. Procedures may be complicated to navigate and there may be tax implications, for example, foreign inheritance tax.”
Accessing online savings or investments can also be difficult, with many hiding within apps on people's phones. Jenny, added: “Family members often do not have their phone password or an account reference number.”
She summarised that the best way to losing assetts completely is through the old-fashioned method of keeping an asset log with your will - as 'this will allow a personal representative to find relevant details like account numbers'.
You also need to keep it up to date, but most people do not. Jenny continued: “Your will is one of the most important documents you will ever write as without one, and an asset log, your loved ones may lose the wealth you worked so hard to build up during your life.”
Daniel Cane, chief executive of financial asset search company Inheritance Data, added: “The amount of money which is unclaimed is simply mind-boggling, and potentially life-changing for some of those bereaved families and beneficiaries to whom it is owed.”
Read next:
- Warning over new scams involving fake cost of living payments
- Warning over cruel WhatsApp scam that has cost victims over £1.5m this year
- DWP cost of living payment: Why you may not have your received your money yet
- Little-known tip for Boots advantage card holders to get extra points
- Cost of living: Old-fashioned money-saving tips - how many do you do?
