How to recover overpaid funds held by the Treasury Solicitor

Some funds that should have been paid to a particular person end up being held by the Treasury Solicitor (now formally the Government Legal Department, acting through the Bona Vacantia Division). This typically happens where the rightful recipient cannot be identified or located. If you believe you are entitled to such funds, there is a formal process to recover them.

This guide explains how funds end up with the Treasury Solicitor, what the recovery process involves and what evidence you need.

How funds reach the Treasury Solicitor

Several categories of funds may pass to the Treasury Solicitor:

Estates without known beneficiaries

Where someone dies without a will (intestate) and no entitled relatives can be identified, the estate may eventually pass to the Crown as bona vacantia. The Treasury Solicitor administers these estates.

Dissolved companies

Where a company has been dissolved and its assets have not been distributed, the remaining assets may vest in the Crown.

Unclaimed funds from court proceedings

Funds paid into court (or court-administered accounts) that have not been claimed within the relevant time may be transferred to the Treasury Solicitor.

Other unclaimed funds

Various statutory schemes pass unclaimed funds to the Treasury Solicitor in different circumstances.

Who can claim?

The categories of claimant depend on the type of fund:

Intestate estates

Entitled relatives (under the intestacy rules) can claim. The intestacy rules set out a strict order of entitlement: spouse, children, parents, siblings and so on.

Dissolved companies

Former shareholders, creditors or in some cases other interested parties can claim, depending on the source of the assets.

Court funds

The original beneficiary (or their estate or successors) can claim.

Other funds

The rules depend on the specific scheme.

Time limits

Time limits vary. For dissolved company assets, claims must usually be made within specific periods after dissolution, and may require the company to be restored to the register first.

For intestate estates, there is no fixed limitation period for making a claim, but the longer the delay, the harder it usually becomes to prove entitlement.

For court funds, there are specific rules about how long the funds remain available for recovery.

The general procedure

Identify the fund

The Bona Vacantia Division of the Government Legal Department publishes a list of unclaimed estates and other funds. The list is searchable online. Identifying the specific fund you are claiming is the starting point.

Establish your entitlement

You need to prove that you are entitled to the fund. The evidence required depends on the type of claim.

Submit the claim

The claim is submitted to the Bona Vacantia Division with the supporting evidence.

The Treasury Solicitor's review

The Division reviews the claim. They may ask for additional evidence or clarification.

Distribution

If the claim is accepted, the funds (or your share of them) are paid out. There may be deductions for costs and administration.

Evidence for intestate estate claims

For claims against intestate estates, the evidence required is substantial:

Family tree

A properly researched family tree showing the relationship between you and the deceased. This is usually prepared by a specialist genealogist or probate research firm.

Birth, marriage and death certificates

Certified copies of all the certificates needed to establish each step in the family tree. Missing certificates can usually be obtained from the General Register Office.

Identity documents

Your own identification and evidence that you are the person named in the family tree.

Statutory declarations

Sworn statements covering points where documentary evidence is not available.

Evidence of no other claimants

Evidence that you are the closest entitled relative.

Probate research firms

Many people first learn of an unclaimed estate when contacted by a probate research firm (sometimes called "heir hunters"). These firms:

• Identify unclaimed estates
• Trace potential beneficiaries
• Offer to handle the claim on a contingency basis (typically taking a percentage of any recovery)

Their fees are usually a percentage of the recovery (often 10% to 30%). This can be reasonable if they have done substantial research, but for relatively simple claims you may be able to recover more by managing the claim yourself.

If a research firm contacts you, you are not obliged to use them. You can verify the existence of the estate yourself through the Bona Vacantia list and consider whether to engage the firm or handle the claim independently.

Restoring a dissolved company

For claims against assets of a dissolved company, restoration of the company is usually required first. Restoration can be done by:

Administrative restoration

Available for companies that were striking off rather than dissolved through liquidation, where the application is made within 6 years of dissolution by a former director or member.

Court restoration

Required for older dissolutions or where administrative restoration is not available. An application is made to the court for restoration.

Once the company is restored, it is treated as if it had never been dissolved. Its assets revert to its ownership and can be administered through the normal corporate processes.

Recovering funds from court

Where funds are held in a court account, recovery usually requires:

• Application to the court (often on Form N244)
• Evidence of entitlement
• Identification of the original beneficiary or their successors

If significant time has passed, the case may be complex, particularly where the original beneficiary has died or assigned their interest.

Costs and deductions

The Treasury Solicitor will usually deduct:

• Their administrative costs
• Any third party costs they have incurred (such as advertising for claimants)
• Tax due on the estate

What you receive will be the net amount after these deductions.

Disputed claims

Sometimes more than one person claims to be entitled to an unclaimed fund. The Treasury Solicitor will not adjudicate competing claims. The claimants must resolve the dispute between themselves or through the courts.

For substantial sums, this can become complex litigation, particularly where the claimants come from different branches of the family.

Tax considerations

Funds recovered from the Treasury Solicitor may have tax implications:

Inheritance tax

For estates above the inheritance tax threshold, inheritance tax may be due. The Treasury Solicitor will usually settle this before distribution.

Income tax

Any income earned on the funds while held may be taxable.

Capital gains tax

If the assets include shares or property, capital gains tax may apply on disposal.

Specialist tax advice is often needed for substantial recoveries.

Common problems

Incomplete family trees

Missing certificates or gaps in the chain of relationships can prevent a claim being accepted.

Competing claimants

Other people claiming the same fund.

Insufficient evidence of identity

Difficulty proving you are the person named in the family tree.

Out-of-date records

The Treasury Solicitor's records may not include all entitled persons.

Tax issues

Unexpected tax bills on recovered funds.

Timescales

Recovery can take significant time, particularly for complex cases:

• Simple cases: 3 to 6 months
• Cases requiring company restoration: 6 to 12 months
• Complex cases with disputes: 1 to 3 years or more

When to take legal advice

For small recoveries, the process can usually be managed by the claimant directly or through a probate research firm. For substantial recoveries, complex situations or disputed claims, specialist legal advice is essential.

A direct access barrister with chancery and probate experience can advise on the prospects of a claim, the evidence needed and any court proceedings required (such as company restoration or contested claims).

Get clear advice from a specialist barrister

Many of the people we help have already done significant work on their case themselves. A direct access barrister can step in at any stage, from initial advice through to representation at a final hearing. Get in touch to discuss your options.