Looking for lost money?

Recently, I reached into my coat pocket and found a twenty-dollar bill, finding this money was very exciting to me as I was alone at the time…..which meant I did not have to share this new acquisition with my husband!  It is satisfying when we find something that we thought we had lost or had completely forgotten about.  Naturally, being me, the idea of encountering money in a coat pocket made me consider how this could apply to an Executor and what they need to look for while administering an estate.

When someone is an Executor of an estate, part of their role is to determine the deceased assets' at the time of death.  Creating a list of belongings can also include searching pockets for possible twenty-dollar bills.  Another way to explore additional assets can be with the Bank of Canada's unclaimed balance search.  Running a search through this website ensures that the Executor took all necessary steps to find any unknown and unclaimed bank accounts.

The hunt for unclaimed funds in dormant bank accounts does not have to be limited to Executors of an estate only; this search can be conducted by anyone following up on monies and visiting the website

You might be wondering what precisely this unclaimed bank business is all about, an unclaimed bank balance is transferred to the Bank of Canada after an account has been inactive for ten years, and the owner cannot be contacted/found.  According to the Bank of Canada website, "At the end of 2019, approximately 2.1 million unclaimed balances, worth $888 million, were on the Bank's books."

Let's think about that for a minute.  2.1 million unclaimed bank accounts that were worth $888 million.  That puts my newly found pocket money to shame!

It is essential to point out that not all accounts can be found using the online inquiry.  If you are searching for an account that holds any of the following, they may require different methods:

• U.S. dollar accounts and other non-Canadian currencies

• Registered Retirement Savings Plan (RRSP) and Registered Retirement Income Fund (RRIF) accounts

• Life insurance policies

• Credit union accounts

• Unclaimed balances at utilities and other companies

• Gold or silver certificates

• Safety deposit boxes

• Stocks and dividends

As I mentioned, it takes ten years for an inactive account to move into the world of unclaimed balances. Once the Bank of Canada holds the funds, balances of less than $1,000 can be retained for 30 years, and balances of $1,000 or more are held for 100 years!  Time is on your side….I suppose.  Monies that are unclaimed at the end of the prescribed custody period are transferred to the Receiver General.

If an Executor discovers that there is an unclaimed account for the deceased, then they will be required to submit a claim to redeem the funds payable to the estate using the following steps:

1. Complete the claim form (based on the type of claim)

2. Gather the supporting documents

3. Mail-in the completed package (oddly enough, even in 2021, there still isn't an online option to submit everything)

An Executor should be prepared to submit the following items with their claim:

• An original bank statement, if the claim is for an account

• Proof of investment

• Proof of address for the deceased

• Two forms of valid ID for each claimant

  • One must bear the claimant's photo.

  • One must include the claimant's current address.

• Evidence that the Executor is authorized to act on behalf of the estate

  • examples include:

    • Death Certificate

    • Last Will and Testament

    • Certificate of Appointment of Estate Trustee with a Will/Without a Will

Once the claim package is prepared and sent off via "old fashioned mail postage services," the waiting game begins.  Currently, the wait times are listed as approximately 6 to 8 months.  So don't pre-celebrate those newly found funds just yet!