Hidden Wealth: Is Your Family Missing Out on Unclaimed Assets?
Did you know that in 2022 the Bank of Canada (BoC) and a few large provinces had unclaimed bank accounts and estates totaling $1.8 billion dollars? That number has more than doubled since 2010 and it keeps growing, despite the government’s best efforts to find the owners.
If certain financial products are not used for 10 years, federally regulated banks will consider the balance as unclaimed and the funds are transferred to the BoC. The BoC’s unclaimed balance of $1.1 billion represents 2.5 million accounts that have sat dormant for over 10 years.
If the unclaimed funds are not reclaimed within 30 years, they are transferred to the government’s accounts.
Learn the extent of the full problem in a National Post article in Aug 2022.
Imagine – over 2 million individuals, or estate beneficiaries, could have access to lost assets – if they only knew they existed!
This article speaks to how this situation could happen, steps you can take to avoid it, and how to discover an unclaimed account and recover any missing funds.
Missing Money? Forgetting Bank Accounts is Surprisingly Common
Forgetting a bank account is more common than we realize and easier than we think. Some examples of why this happens:
Certain events like moving, changing jobs or switching banks can all contribute to forgetting to close out old accounts.
Disorganized and undocumented records lead to chaos for families as accounts may be unknown to them.
Old accounts with small balances and inactivity gradually get forgotten.
Regardless of the cause, the outcome is the same—unclaimed assets go to the government instead of your loved ones. Without organizing and documenting your accounts, your heirs may miss out on their full inheritance and face unnecessary financial loss.
Without documenting your accounts, your heirs may face unnecessary financial loss.
Protect Your Wealth: How to Prevent Forgotten Accounts
No one intentionally wants their assets in the government’s hands instead of their loved ones. The volume of unclaimed accounts speaks to just how many of us face this situation.
What’s eye opening is we don’t even know there’s lost money to claim. Sadly this situation can easily be avoided. Here’s how:
Organize and Document your personal and financial information– such as bank accounts, digital currency, life insurance policies, and investment account numbers.This ensures your family and executor have knowledge these accounts exist and access to critical information should you become mentally or physically incapacitated or die.
A Smarter Way to Organize Family Documents
Review and Update your personal and financial information. Things change regularly and some changes could impact the documented information your family and representatives rely on. Scheduling a review annually, or when life events occur is good practice.
It’s also important to recognize how certain situations can lead to forgotten accounts. Busy lives often take over, and as noted earlier, things like switching banks without closing old accounts or moving out of the country while leaving current accounts active can result in unintended losses.
Appoint an executor and name beneficiaries or or charities in your will if you want to safeguard your assets from potentially being handed over to government coffers.
Communicate with your family, attorneys and executor so they have full knowledge and understanding of your financial affairs and your wishes. Make sure your attorneys and executors agree to assume these roles and are ready to step up when the time comes.
They should know where to find your important personal and financial information and have easy access including all your passwords.
What’s eye opening is many Canadians don't even know there’s lost money to claim and sadly this situation is easily avoided.
Unclaimed Funds: How to Find and Recover What’s Yours
Wondering if you have unclaimed funds? The BoC, along with Alberta, Quebec, British Columbia, and New Brunswick, have created registries to help Canadian citizens recover lost assets.
These unclaimed assets originate from different sources, including forgotten trusts, estates, investments, escrow accounts, insurance payouts, uncashed cheques, and dormant bank accounts. In B.C., one notable unclaimed estate is worth $1.9 million, with heirs who may not be aware of its existence.
The following resources may assist if you suspect you or your loved ones have unclaimed funds:
Despite efforts by the BoC to get in touch with the rightful owners of lost accounts, the value and number continue to grow.
Conclusion
If certain financial products are not used for 10 years, federally-regulated banks will consider the balance as unclaimed and transfer the funds to the Bank of Canada. The BoC’s unclaimed balance of $1.1 billion represents 2.5 million accounts that have sat dormant for over 10 years.
Are you or a family member one of those 2.5 million lost accounts? Forgetting a bank account is more common than we realize and easier than we think.
If you don’t organize and document your accounts, you and your family could go without funds you could use today – or your heirs may miss out on their full inheritance when the time comes.
Check out the registry applicable to your province if you suspect you have unclaimed funds, and consider documenting all your financial accounts to avoid forgotten assets.
Did this article raise awareness and provide helpful information about unclaimed accounts?
We’d love to hear if you think you have an unclaimed account and if you’ve visited a registry to find out. Share your thoughts with us.
Financial Concierge™ offers Professional Executor and Power of Attorney services to assist with executor, attorney duties or help with managing daily financial activities. Learn more about Financial Concierge™ here.
Author: Janet Jackson, Contributor: Jill Chambers
DISCLAIMER: This blog is not intended to be legal or financial advice and should not be construed as anything other than for information purposes.
