In Australia, unclaimed inheritance often accumulates when beneficiaries are unaware of their entitlements or when estates are left without a clear heir.
This unclaimed money, including assets from deceased estates, is held by state or territory revenue offices and can be claimed by rightful heirs.
Understanding how to search for and claim this inheritance is crucial for anyone who might be an eligible beneficiary.
Understanding Unclaimed Inheritance
Unclaimed inheritance can include anything from bank accounts and shares to insurance payments and dividends that have not been claimed by the rightful owners.
After a period, typically seven years, these assets are transferred to government bodies such as the Australian Securities and Investments Commission (ASIC) or state revenue offices.
How to Search for Unclaimed Inheritance Australia
- Online Databases: Each state and territory in Australia offers an online search platform where individuals can look up unclaimed money. These databases are accessible and free to use.
- Required Information: To search, you will typically need to provide details such as the full name and the last known address of the deceased.
- ASIC’s MoneySmart Website: ASIC also maintains a database for unclaimed money from banks, companies, and life insurance policies, which is accessible through their MoneySmart website.
Also read: Is There Inheritance Tax in Australia
Claiming Your Unclaimed Inheritance
- Verification Process: Claimants are required to verify their identity and their relationship to the deceased. This may involve providing identification documents, a death certificate, and proof of your relationship to the deceased.
- Legal Requirements: In some cases, legal advice may be necessary, particularly if the inheritance is substantial or the claim is complex.
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What Happens to Unclaimed Inheritances?
If unclaimed assets remain unclaimed, they are held indefinitely until claimed. The funds are used in the public interest but can be claimed by the rightful owner or heir at any time, with no time limit on claims.
Preventing Unclaimed Inheritances
Unclaimed inheritances can create unnecessary complications and emotional distress for families. Here are some strategies to ensure assets are successfully passed on to the intended beneficiaries:
Estate Planning
- Develop a Comprehensive Plan: It’s vital to establish a comprehensive estate plan that covers all aspects of your financial and personal affairs. This plan should be regularly reviewed and updated to reflect any changes in your circumstances or in the law.
- Draft a Clear, Up-to-Date Will: Having a legally valid will is crucial. This document should clearly outline the distribution of your assets and name an executor who will manage the estate’s administration. An up-to-date will can prevent disputes among potential heirs and ensure your wishes are followed.
- Consider Trusts and Other Legal Instruments: Depending on your situation, setting up trusts or other legal structures can offer more control over how your assets are distributed and when.
Also read: Irrevocable Trust Australia
Informing Heirs
- Communicate Your Intentions: One of the most effective ways to prevent your inheritance from becoming unclaimed is to have open discussions with your potential heirs about your estate plan. This includes sharing the details of the will and the reasons behind your decisions.
- Provide Access to Essential Documents: Ensure that key individuals, such as your executor or close family members, know where to find important documents like your will, trust deeds, insurance policies, and details of bank accounts.
- Education on Financial Literacy: Educating heirs about financial management and the responsibilities of inheriting can also help in ensuring that they are prepared to handle their inheritance responsibly.
Unclaimed inheritance in Australia represents a significant amount of money that rightful heirs are entitled to but may not be aware of. By using the resources available and understanding how to navigate the claim process, individuals can recover what is rightfully theirs, potentially uncovering substantial financial assets that could make a considerable impact on their lives.
