What Happens With Unclaimed Inheritance in a Will?
In Western Australia, there is approximately $160 million in unclaimed money on the Department of Treasury’s register. And Australia-wide, there is around $1.5 billion in lost shares, bank accounts and life insurance. That’s a lot of $ signs, people. So, what’s the deal with unclaimed inheritance, anyway? Allow us to explain.
Why does unclaimed inheritance happen?
So, why does unclaimed inheritance happen in the first place? There are a few reasons for this:
A person may die intestate
If there is no Will, then when the estate enters probate, those who would likely have inherited property and assets can file petitions to try and claim their stake in the estate. Ultimately, the Court will decide based on the state’s intestacy laws.
Beneficiaries may not realise they have unclaimed property
Poor record keeping is often to blame here, or the person who is set to claim the property may be unaware of a certain property or assets owned by the family.
Beneficiaries may not want their inheritance
If a beneficiary doesn’t want to accept their rightful inheritance in Australia, they have to submit a valid legal document to refuse their inheritance formally – this is called a disclaimer of inheritance.
You may be wondering, why would someone refuse free money or an old property? Well, it’s not always a no-strings-attached situation. For example, the beneficiary may want to avoid inheritance taxes in a foreign country, (although in Australia, there is no inheritance tax), they may inherit a dilapidated property that would cost too much to repair or maintain, or the beneficiary may want to avoid a family inheritance dispute. The nature of being alive is that things aren’t always so simple, and the same thing kinda applies to inheritance – sometimes.
What happens if an inheritance is not claimed in Australia?
It’s not what you think. Really. Unclaimed inheritance doesn’t just *sit pretty* in the deceased's bank account. If money goes unclaimed from deceased estates, then State governments hold the money, alongside share dividends, salaries and wages, cheques, trust money, over-payments and proceeds of sale for the time being… or in some cases, indefinitely (if it’s never claimed). The good news is that for some people, you may be owed money that can be returned to you.
Search for deceased estates - in each Australian state and territory
If you think you’re entitled to an unclaimed inheritance, you will need to contact the public trustee in the state where the money is held.
The contacts for each state and territory can be found below:
New South Wales: NSW Trustee and Guardian
Northern Territory: Northern Territory Office of the Public Trustee
Queensland: Public Trustee of Queensland
South Australia: Public Trustee South Australia
Tasmania: Public Trustee Tasmania
Victoria: State Trustees Victoria
Western Australia: Public Trustee Western Australia
Search for dividends and other money
For things like dividends, salaries and wages, rent and rental bonds, trust money and more, contacts are listed below:
New South Wales: Revenue NSW
Northern Territory: Northern Territory Treasury
Queensland: Public Trustee of Queensland
South Australia: SA Department of Treasury and Finance
Victoria: State Revenue Office Victoria
Western Australia: WA Department of Treasury
Wrap up
From pure oblivion about family-inherited properties to people dying without a Will, there are myriad reasons why inheritances go unclaimed and end up with the State government. The good news is that for some people, you may be owed money that can be returned to you.
Found this helpful? Discover similar guides like Do I have to accept an inheritance if I don’t want to? and How to Handle a Windfall Inheritance next.
Disclaimer: The content of this blog is intended to provide a general guide to the subject matter. This blog should not be relied upon as legal, financial, medical, accounting or tax advice.
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