As Germany pursues major budget cuts, billions of euros are reportedly lying dormant in so-called 'forgotten accounts' at banks and financial institutions. A 2021 government report estimated up to €4.2 billion ($4.9 billion) in such accounts, with some estimates reaching as high as €9 billion.

The problem arises as elderly individuals open multiple accounts, forget them, or pass away, leaving heirs unable to locate the assets. Online banking and digital assets like cryptocurrencies and NFTs further complicate the search.

Germany lacks an official definition of abandoned accounts, and they can remain untouched for years. Banks have discretion in handling them, but strict data protection rules hinder efforts to locate owners or heirs.

The government can only claim an account if declared heir under inheritance law, not through unclaimed property regulations. Without a central register, heirs must send inquiries to various banking associations, a time-consuming and costly process.

Beatrice Eisenschmidt, board member of the VDEE association representing professional heir finders, noted that many heirs abandon the search. The current government under Chancellor Friedrich Merz has drafted legislation for a central online register, but it has not yet been passed.

A survey commissioned by SOS Children's Villages found that 86% of respondents support channeling forgotten funds into a social projects fund. Different countries have varied approaches: the UK transfers dormant accounts to a reclaim fund after 15 years, while in the US, states take custody after 3-5 years. Experts advise keeping financial records updated and sharing them with family.

Source: www.dw.com