Question from a reader:
I found a bankbook that was used for the community association’s accounting. The account holder passed away decades ago, and I discovered it by chance while cleaning out my family home. The bankbook has something like the community association’s name written before the individual’s name. When I inquired with a certain bank, I was told that even
if there is a balance, I cannot withdraw it or give it to the heirs. Since the account holder has passed away, I want to resolve this matter, but I cannot return the balance to the community association, and it’s possible that an individual had previously advanced funds. The amount is about 100,000 yen, and the balance is definitely in the bankbook, but the bank said I should either dispose of it or that they cannot process it. Will this just go to the national treasury? If I hadn’t discovered it, I wouldn’t have been concerned, but I want to handle it properly. If the bank representative is telling me to dispose of it, is there no other option? If I was handling the community association’s accounting, I think I would need to return that amount in cash when I stepped down to balance the books, but now the name of the community association has changed, and since this was quite a while ago, I’m wondering if I should just let it go. I would appreciate any advice from anyone.

Legal Considerations Regarding the Discovery of a Community Association Bankbook

Hello everyone. Today, I would like to discuss a somewhat delicate topic. This is about the case of finding a community association bankbook belonging to someone who passed away decades ago. There are several questions that come with this bankbook, but especially regarding the handling of the money, a proper legal understanding is necessary. I will share my own experiences as well, so please stay with me.

What is a bankbook belonging to a deceased account holder?

First, the situation of discovering a bankbook that belonged to a deceased person is surprisingly common. Especially within communities like a neighborhood association, financial records from decades ago may still exist. Community association bankbooks often contain the history and memories of that organization, but unfortunately, since the account holder has passed away, the bank’s response becomes strict. When I inquired with the bank, I was told that even if there is a balance, it cannot be withdrawn or returned to the heirs, which is legally the correct response. Under Japanese law, accounts in the name of a deceased person are generally frozen, and withdrawals cannot be made unless inheritance procedures are completed. Even if it has the community association’s name attached, it is still considered the personal money of the account holder, and careful handling is required.

Is it not possible to return it to the community association?

Now, the point of concern is, “Is it not possible to return it to the community association?” In fact, even if there is a bankbook in the name of the community association, as long as it has an individual’s name attached, that money is treated as personal property. Therefore, the possibility of returning it to the community association is very low. I have faced a similar situation in the past. At that time, while I was involved in local management, an old bankbook was found, and there was a balance, but when I inquired with the bank, they confirmed that if it was in an individual’s name, it would belong to that person’s heirs.

Should I dispose of it or process it?

When the bank representative advises disposal, it can be troubling to think about what else to do. Honestly, deciding what to do with the balance of the bankbook is a very difficult issue. Legally speaking, if inheritance procedures have not been carried out, it may be safest to leave it as is. However, personally, I am not fond of the option of “doing nothing.” Since the bankbook has been discovered, it is natural to want to handle it properly.

Will it go to the national treasury?

Now, you might be wondering, “Will this just go to the national treasury?” In fact, if the deceased’s property is not processed through inheritance, that property will ultimately belong to the national treasury. In other words, there is indeed a possibility that it will go to the national treasury. This point must also be considered. If you were handling the community association’s accounting, you might think that when you step down, you need to return that amount in cash to balance the books, but it is also important to investigate past operational records to see how things were handled. I recommend consulting with the current representatives or managers of the community association.

In conclusion

Ultimately, what to do with the balance of the bankbook is largely left to individual judgment. It is important to follow the correct procedures, but I also understand the feeling of wondering, “What if I just leave it as is?” From my own experiences in such situations, I believe it is important to take some action. Even if it is a small thing, “doing something within my capacity” can lighten the heart a little. If you are struggling with this issue, do not forget to consult a professional. A legal expert can provide specific advice. It is sometimes important not to bear it alone and to seek help from someone else. Well then, I hope to see you again next time. I wish for your heart to feel a little lighter.