Dormant Bank, Pension and Investment Accounts
Published / Last Updated on 26/05/2021
The Government has published draft legislation to include additional assets across the insurance and pensions, investment and wealth management, and securities sectors in the Dormant Account scheme that will become law later this year.
Bank and Building Society Accounts:
Currently, dormant bank and building accounts where owners or relatives cannot be traced that have not been visited, remain unclaimed on death and the client would be over 120 years old are passed to the public ‘purse’ and used for the benefit of society.
Now Dormant Accounts will include Pensions, Investments and Wealth Accounts:
Pensions that become ‘Dormant’:
- Income payable from the pension scheme.
- Other benefits payable from a money purchase pension scheme but excluding auto-enrolment workplace pensions and /or with profits pension funds.
Pensions that Qualify:
- The pension scheme member must be dead and no-once is entitled to the benefit.
- 7 years after a known death with contact from executors, administrators or potential beneficiaries.
- Member that would be already aged 120 years old.
Investment and wealth accounts will also become ‘Dormant’:
These will become dormant under similar qualification rules with the following exclusions:
- With profits funds.
- Industrial Life Policies (the type where a salesperson would knock on your door each week and collect a few pounds in premiums.
- Policies that are held in trust.
- Lifetime ISAs.
