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An estimated £31.1bn is currently held in lost or unclaimed pension pots, according to the Association of British Insurers, stemming from a fragmented notification system that requires bereaved families to contact private organisations individually following a death.
While the government service Tell Us Once notifies public bodies, bank accounts and utilities remain outside any joined-up system. Each year, some 650,000 deaths in the UK are said to trigger a paperwork burden that falls on relatives or executors.
The average person holds accounts at 15 to 20 organisations, which families must identify and contact to close accounts by piecing together financial records from bank statements while arranging funerals or grieving.
Average households also carry £600 a month in direct debit commitments. As a result, accounts left open for three months can drain £1,800 from an estate for unused services. Probate fraud also costs approximately £150m a year.
In light of this, the Financial Conduct Authority (FCA) confirmed it will fine regulated firms that fail to process deceased customers’ accounts within a reasonable timeframe, following a review of industry practices conducted in 2025.
Legacy Trail, a company based in Dorset, also aims to help families identify and close accounts following a death.
Edward Martin, co-founder of Legacy Trail, said: “The government solved one half of this more than 10 years ago. Families can notify every public body in a single step, then spend weeks trying to find and then close everything else, usually while they are still in the worst of it. We’re trying to solve that problem.”
