Val Taylor, a retired nursery manager died aged 72 in Burnley last February. Born an only child to parents who had no siblings, Taylor had no known relatives and no one was able to locate her will.
Under the antiquated system of bona vacantia, everything she possessed when she was alive was, essentially, ownerless.
The bona vacantia principle – literally “ownerless goods,” plays a crucial role in determining the fate of estates when individuals die intestate without leaving a valid will disposing of their assets, and there is no heir according to the intestacy rules. These rules, established in the Administration of Estates Act 1925, outline the hierarchy of individuals who can inherit the property of an intestate person. When no close relatives can be found, the unclaimed estate passes to the crown.
The Treasury Solicitor acts for the Crown to administer the estates of people who die intestate (without a Will) and without known kin (entitled blood relatives) and collect the assets of dissolved companies and other various ownerless goods in England and Wales.
Exceptions apply to people who die in territories linked to medieval fiefdoms associated with two royal estates, the duchies of Cornwall and Lancaster.
Duchy of Lancaster and Duchy of Cornwall
Notably, the estates of those who die within the historic County Palatine of Lancaster and Cornwall follow a different path. In these regions, the bona vacantia rules designate the Duke of Lancaster (the reigning monarch, currently King Charles III) and the Duke of Cornwall (the Prince of Wales, Charles’s son, William) as the recipients of these unclaimed estates.
Historical Roots
This ancient power dates back to a 1377 grant by Edward III to John of Gaunt when he held the title of Duke of Lancaster. Today, it is enshrined in the Administration of Estates Act 1925.
Financial Impact
While many of these unclaimed estates may not be sizable individually, the accumulated sums received by the Duchy of Lancaster and the Duchy of Cornwall are substantial. The Guardian reports that over the past decade, the Duchy of Lancaster alone has collected approximately £61.8 million.
In Val Taylor’s case her bungalow, and all of her other assets, were being transferred to the Duchy of Lancaster. If she had died 20 miles away, outside of what was once called the Lancashire county Palatine her assets as is the case for most Britons who die with no will or next of kin would have been claimed by the Treasury.
Administration and Controversy
The Treasury solicitor and the two duchies actively seek entitled relatives and distribute funds according to heirship rules. However, recent reports have highlighted a controversial shift in the administration of the Duchy of Lancaster’s funds in 2020. Allegations include the use of money to enhance historic properties within the Duchy’s portfolio, which are then rented out for profit.
Charitable Concern
Questions have been raised regarding the amount of the duchy’s income currently allocated to charitable causes, suggesting a decline in charitable contributions. This has sparked a broader debate on the fairness and relevance of estates in Lancashire and Cornwall becoming private assets of the monarch, while those in other regions pass to the British state.
The Call for Estate Planning:
Amidst these discussions, a clear message emerges for those wishing to direct their estates toward charitable causes rather than the crown – make a will. By carefully drafting a will, individuals can ensure that if no living heirs exist, their estate will be directed to a charity of their choice. Many charities offer will-writing services, emphasizing the importance of planning ahead when it comes to legacies.
Conclusion
The intersection of bona vacantia, historical grants, and contemporary controversies unveils a complex web connecting individuals, the crown, and the distribution of unclaimed estates. As debates continue, the lesson is clear – for those with specific preferences for their estates, proactive estate planning is key to ensuring their wishes are fulfilled.