A firm has uncovered £270,000 held in a previously unknown account during the administration of a probate estate, reuniting the money with their delighted clients.
Elite Law Solicitors said the discovery was part of their estate administration services which offers ‘comprehensive advice to clients’ including recommending additional tools and services outside of their scope.
The money was discovered after the firm instructed a Financial Profile Search carried out through the legal technology group Estatesearch, who say they provide a range of estate administration services to ‘help legal teams save time and mitigate risk during probate and deputyship cases.’
Meg Wilton of Elite Law Solicitors explains how ‘asking the right questions and checking the wider picture to see if there is a recommendation we can make beyond our services which is in the best interests of our client’ was the trigger for ordering the search.
“We have used Estatesearch’s services for several years and it is not uncommon to discover the odd account or asset but no one was prepared for what transpired on this occasion. The search yielded a positive match, and further enquiries revealed an account containing over £270,000 which no one was aware of.”
The money, which is subject to inheritance tax (IHT) still represents a huge, and unexpected windfall for the clients who will receive a substantial sum once the HMRC account and legal fees are settled said Wilton/
“By contrast, if the asset had been discovered after the estate had been distributed, it would have been likely they would have needed to pay interest and penalties to HMRC, so they were pleased and relieved this bank account was discovered thanks to the Estatesearch’s Financial Profile Search we recommended. It was rewarding to work on a case which had such a positive impact on our clients.”
Ben Furlong, Managing Director at Estatesearch says it is not unusual for such searches to identify lost of unknown assets. He estimates around 70% of their clients have identified assets their clients were previously unaware of, although finds of such value are rare. The Financial Profile Search makes enquiries of more than 150 organisations, searching over 450 companies and brands including banks, building societies, investment managers, share registrars, pension providers and insurers to help identify accounts. Firms then make further enquiries if a financial institution confirms the subject holds, for example, an account or a pension of which they were previously unaware. This particular case highlights the importance of asset searches in supporting due diligence during estate administration, adds Furlong.
“This case has also been a useful example to share with clients to explain about the importance of an asset search. It’s not just about the potential of finding ‘buried treasure’ but also avoiding any penalties or fines relating to IHT or potential additional legal fees should assets become known, even years later and the estate needs to be re-distributed.”
concludes Wilton.
