Your Money: Tony Hetherington

Aug 27 2008 by Our Correspondent, Huddersfield Daily Examiner

Some time ago I wrote to you about a Trustee Savings Bank account I held in the 1970s and then forgot about. You advise me, and luckily I found a statement showing I deposited £517 in 1978. However, Lloyds TSB says it only holds records for ten years and cannot trace my account. Do you think I should give up? Mrs W.H.

Legally, companies only need hold records for six years or so, though I admit I have always puzzled over why banks, insurers, and other firms that operate long term investments see no need to keep paperwork far longer. The British Bankers Association (0207 216 8909) runs a Dormant Account Unit that helps reunite people with lost savings, so do speak to them before you give up. You can also appeal to the Financial Ombudsman (0845 080 1800), who will consider your evidence and weigh it against whatever Lloyds TSB has to say. But the bottom line is that you are approaching the end of the road and I am afraid you may have to admit defeat, even though you have told me you are sure you never withdrew the money.

My husband took out a life insurance policy with Legal & General. Recently he decided to see what it was worth but was told it had no surrender value. Surely his premiums have made some profits over the years? Mrs K.S.

The papers you sent me refer to a term insurance policy. This is about the cheapest type of life insurance there is, and it is based on the simple idea that if you die, even after paying just one premium, then your family will get the full amount for which your life was insured. But if you survive until the policy ends, you get nothing. This is not a savings policy. It is a peace of mind policy, for people who want to be sure their family will get some money if they die. If your husband consulted a financial advisor and asked for the type of policy that makes a profit, then he has good grounds for complaint.

About 40 years ago I worked for a company with a pension scheme, and I still have a letter I was given to say I should claim from Pioneer Life Assurance when I reached 65. I am now 65, but letters to Pioneer have been returned unopened. L.Y.

Pioneer’s old pension plans are now operated by Swiss Life, Edward Pavilion, Albert Dock, Liverpool, L3 4SL, and that is where you should claim.

I remarried 25 years ago after a messy divorce, and I since then I have not seen my son from my first marriage. Could he claim against my estate when I die? L.E.

He could claim, but he is unlikely to succeed. Legally, you can make a will to leave your belongings to anyone you wish. To win his claim, he would have to show that you were in some way supporting him and that he was dependent on you. Given his age, this sounds impossible.