Estate fraud is going unchecked due to 'systematic apathy', industry figures have said, following a BBC investigation which uncovered widespread probate fraud where criminal gangs are using the Bona Vacantia register to claim unclaimed estates.
The BBC found "mounting evidence that a criminal gang has been carrying out systematic will fraud by exploiting weaknesses in the probate system, stealing millions of pounds from the estates of dead people, and committing serious tax fraud".
Financial fraud expert, Graham Barrow, agreed that "the pattern - multiple businesses, related addresses, similar names - is one which often indicates a criminal network".
Despite using official systems, these gangs largely remained undetected - resulting in significant financial loss for grieving families.
How are criminal gangs exploiting the system?
Taking ownership of a deceased person’s property and financial assets can be alarmingly straightforward under UK law when no valid will can be found.
At the heart of this vulnerability is Bona Vacantia - the government’s official register of unclaimed estates in England and Wales (Latin for “ownerless goods”). This list, which is updated daily and freely available online, currently includes around 6,000 names.
While reputable heir-hunting firms use Bona Vacantia to track down rightful beneficiaries, it has also become a convenient hunting ground for fraudsters.
All it takes for a scammer to seize an unclaimed estate is to spot a name on the register, fabricate a convincing will, and submit it in time to secure a grant of probate.
The process has become even more open to abuse since 2017, when applying for probate online was introduced. Critics argue this digital system is failing to flag suspicious applications, and it can even make inheritance tax fraud easier to pull off.
When someone dies, their estate must be assessed for inheritance tax - any value above £325,000 is generally taxed at 40%. It falls to the person granted probate to ensure this tax is paid correctly.
Yet under current rules, applicants simply need to fill out a form stating whether inheritance tax is owed - and if they say “no,” there is little follow-up or evidence required.
This trust-based approach leaves the system wide open to exploitation. During the BBC’s investigation, several cases emerged in which estates were suspiciously valued just under the tax threshold, despite including properties worth far more.
Government withdraws webpage following claims of 'evident apathy'
Last night the unclaimed estates page on the gov.uk website was temporarily withdrawn, with a message stating: “Due to an administrative issue we have temporarily removed the unclaimed estates list from our website. Further details will follow as soon as possible.”
This morning, the unclaimed estates page was updated again and now says: “The page you are looking for us no longer available. The information on this page has been removed because it was published in error. We have temporarily removed the unclaimed estates list from our website.”
Collette Smith, chief customer officer at compliance experts SmartSearch says ‘evident apathy’ from police and probate services means these cases aren't investigated for what they are; financial crime, and is calling for more regulation in probate including a more thorough requirement to verify the identities, addresses and legitimacy of any individuals claiming the inheritance.
She said: “The investigation by BBC News has highlighted the ease with which probate fraud can take place – in this case, criminals are exploiting death records to steal unclaimed estates.
“It's disappointing to see how easily the Bona Vacantia register (aka unclaimed estates list) is used by fraudsters to claim estates. The evident apathy from police and probate services means these cases aren't investigated for what they are; financial crime. Not only do criminals receive assets they're not entitled to, but they also avoid inheritance tax that would be due. All because of a faulty system based on trust.
“Digitising the system has exposed weakness, however fraudulent activity like this could so easily be detected with a smart system. There should be more regulation and a more thorough requirement to verify the identities, addresses and legitimacy of any individuals claiming the inheritance. Yet another example of the impact of undetected financial crime.”
