A simple Google search for ‘Missing Assets in Canada’ brings up pages and pages of information, each one estimating a different figure for just how much money is lying lost or dormant in financial institutions across the country. Numbers range from $5 to $11 billion, but the fact is that we may never actually know the true figure. What we do know is that it’s not an isolated issue. The UK for example has an estimated £200bn in unclaimed assets that could belong to estate beneficiaries.
The challenge in Canada is that each province has its own unique legislation and rules about how this money should be dealt with. Many provinces rely on The Escheats Act which governs that property reverts to the Crown if a person passes away intestate or without heirs. There are variations of the Act across the country though, which adds complexity.
Our recent customer survey highlighted that over 50% of Canadians have a Will, and it seems likely that, of the remaining intestate estates, most will have (or will have had) a spouse, child, parent, sibling, grandparent, aunt or uncle to whom the estates would vest, meaning it more than likely that these escheated funds, do in fact have a rightful beneficiary out there somewhere.
Further, our research from 2000 consumers residing in Canada in 2024 revealed that:
- 21% of people can’t easily locate or do not know the whereabouts of Registered Savings and investment plans.
- 38% can’t easily locate or do not know the whereabouts of shareholders certificates or bonds.
- 25% can’t easily locate or do not know the whereabouts of life insurance policies.
So how do financial assets become lost?
Over the years, it’s easy to lose track. Because people move house on average seven times during their lifetime, paper trails can get lost if financial institutions are not kept updated. People also change jobs and so pension and investment plans can get forgotten.
However, circumstances such as mental capacity can change too, and often spouses don’t know where assets are held. In our research we found that almost a third of respondents (27%) have not informed next of kin where accounts are held. The shift to digital and online banking has done little to ensure paper trails can be used to identify the whereabouts of missing accounts too.
Estate lawyers have a duty to identify and collect all the assets in an estate. Failure to do so means a breach of their fiduciary duties which could lead to negligence claims, reputational damage, fines, increased scrutiny and loss of trust from clients. So how do lawyers tackle this challenge when families are not able to provide information after a loved one has passed away?
Previously, lawyers would need to write to a handful of financial institutions, but this does not cover all bases. Therefore, Estatesearch has developed an alternative approach which ensures due diligence in identifying estate assets while helping to ensure that beneficiaries receive what is rightfully theirs.
The solution to identifying missing assets?
Estatesearch’s Financial Profile Search provides a comprehensive and detailed report to support an efficient fact-finding process, helping lawyers quickly build a better understanding of clients’ financial affairs to manage and/or administer an estate effectively. Using information and data from a variety of sources, Estatesearch currently notifies more than 150 organizations. The resulting report demonstrates the steps undertaken to identify all assets and liabilities.
Searches are ordered through Estatesearch’s secure, online platform, providing access to a growing range of essential due diligence services, helping firms manage everything in one place. With no registration or subscription fees, firms only pay for the searches services they need.
Together we can work towards addressing the issue of Canada’s missing assets.