Government plans to access billions of euros in forgotten bank accounts!

Government plans to access billions of euros in forgotten bank accounts!

The federal government has announced plans for a new law aimed at mobilizing billions of euros from so-called dormant bank accounts. According to estimates, there are between two and nine billion euros in these accounts, which often result from assets without heirs or inaccessible accounts of deceased account holders. These funds should flow into a state fund for social investments, as set out in the coalition agreement between the Union and the SPD.

A central aspect of this initiative is the desire to use the funds to serve the common good, similar to what has already been implemented in Great Britain. There, funds from inactive accounts are transferred to social projects after 15 years of use. The federal government also plans to introduce a legal definition for dormant accounts and to create a central register to comprehensively record these accounts.

Challenges and legal concerns

The German Banking Association has expressed concerns about the legal hurdles associated with the planned law. There are currently no legal requirements that specify the period after which an account is considered dormant. The general counsel of the German Banking Association, Thorsten Höche, draws attention to the difficulties that can arise from possible state intervention in property rights.

The lack of clarity as to whether an account is classified as dormant after five, ten or twenty years without movement represents a further problem. Currently, under German law, assets without heirs go to the respective federal state or federal government if no heirs can be identified. Banks are authorized to keep funds after 30 years without account movement. For accounts that have been forgotten but not without heirs, the money is also transferred to the bank after 30 years, although the bank is obliged to pay out the amount in the event of later claims.

Risk factors and criticism

Critics warn that premature use of these funds could lead to legal conflicts. If the government claims funds from banks that may belong to another account holder, this could lead to significant legal disputes. If an account holder dies, it must first be checked whether there are heirs. Otherwise, the state acts as heir and can assert claims against the banks, whereby the money would go to the state of the deceased's last place of residence.

Overall, the federal government's plans are under pressure to eliminate legal uncertainties and define clear regulations for dormant accounts. The debate about access to these funds will continue to intensify in the coming months as the appropriate legal framework is developed.

You can find more information on this topic at North24 and MDR.