Insurance Provisions - Estate Research

What risk? What policy?

Missing Beneficiary Insurance

Scenario / Why?

It would be much simpler if our research located every entitled beneficiary and in most cases we do. However there could be a beneficiary who we simply cannot account for such as an unknown illegitimate child.

Next Step / Outcome

Insurers tend to require a genealogy report as pre-requisite to cover. Insurance will address the risk of post-distribution litigation.
Missing Will Insurance

Scenario / Why?

How do you know that the deceased was intestate? Or that the will you are seeking to prove is the most current?

Next Step / Outcome

Minimise the risk: the insurer will require a number of searches to be carried out before cover is offered and we can arrange this on your behalf.
Comfort Policy

Scenario / Why?

Where there is no indication of missing beneficiaries or unfinished research we would always recommend a comfort policy for the protection of the administrator. (For example although the family could be quite certain that the deceased was a bachelor without issue there always remains a possibility that he could have fathered an illegitimate child. In these instances it is the “unknowns” that are being insured). Typically these premiums are 0.75-1% of the estate value. A small premium for maximum protection.

Next Step / Outcome

This policy covers various scenarios such as the possibility of beneficiary coming forward at a post-distribution stage. This cover is usually for Intestate estates.
Empty Property Insurance

Scenario / Why?

Probate process taking too long? Risk of damage to the property and chattels /diminution of value of estate.

Next Step / Outcome

We have teamed up with a nationwide property management company who can arrange fulfilment of requisite criteria to ensure that the policy is effective.
Land Registry – Title Insurance

Scenario / Why?

Unregistered probate property with indeterminate title giving you cause for concern? Are the deeds missing and title needs reconstructing? Are there question marks over whether the estate should be entitled to the property?

Next Step / Outcome

We offer a research service and ultimately an insurance policy that covers the risk and facilitates the sale of the property.
Unclaimed Dormant Funds Insurance

Scenario / Why?

SRA guidelines require adequate steps are taken to ascertain the proper destination of the money and return it to the rightful owner. Even with the best will in the world sometimes the owner cannot be traced. Obviate worry and delay with requisite insurance.

Next Step / Outcome

We can provide evidence of searches undertaken for missing owner and provide you with an insurance option so you can distribute monies elsewhere that will ultimately enable you to close your file.

Bond of caution and MBI – Combined policies to protect all

One of the new services we now provide is an insurance policy that combines missing beneficiary insurance with a bond of caution.

Why?

In any estate matter it is imperative that an estate is distributed correctly and all missing heirs are located. In an intestacy the estate will be distributed according to the Laws of Succession in Scotland. The Executor has a legal obligation to satisfy the claims of any heirs to the estate and a in some circumstances a bond of caution may be required from an insurance company.

What is bond of caution?

A bond of caution is issued for the benefit of potential creditors or heirs and is a guarantee that the estate will be distributed in accordance with Scots Law. It is not a policy that provides cover or protection to the Executor. If a claim is made the Executor is bound to reimburse the potential heir’s claim.

What can be done?

In conjunction with our insurance partner we can now offer an insurance policy which includes both a bond of caution and a missing beneficiary comfort policy as one product. If your family tree has been verified by ourselves we will provide a report to the insurer. On that basis we are able to obtain the policy which covers both the beneficiaries and the Executor in the event of any future claims in perpetuity.

How Much?

Value of Estate	Premium (inc. IPT) Executor Insurance only	Indicative Premium (inc. IPT) Executor Insurance plus Bond of Caution
< £10,000	£295	£425
£10,001 – £20,000	£395	£525
£20,001 – £50,000	£495	£725
£50,000 – £100,000	£695	£1,000
£100,001 – £250,000	£995	£1,500
>£250,001	On request

NB. Bonds of Caution are individually underwritten and priced. The following pricing is indicative only – a Bond of Caution Application Form will be needed in each case. The rates for Executor Cover and the Indicative rates for the ‘inclusive’ cover also only apply where no identified “Known Risk” exists (e.g. known Missing Beneficiaries or Will) and all the statements in the relevant application are confirmed.

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