Trust and Probate Estate Administration
Why should you consider Trust & Probate / Estate Administration Risk insurance?
Trust and Probate/Estate Administration Risks relate to the legal and financial liabilities that may occur while managing the administration of a deceased person’s estate or trust, which can be addressed through specialist insurance policies.
Why should you consider Trust & Probate/Estate Administration Risk insurance?
Insurance can provide essential protection against unforeseen risks that may arise during the distribution of an estate. Even after thorough due diligence, unknown creditors, missing beneficiaries, or a missing will can result in claims against the estate. Indemnity insurance protects personal representatives, executors and beneficiaries from financial losses and legal costs, offering peace of mind and ensuring a smoother administration process.
Common risk types we can source cover for include:
Section 27 Indemnity Insurance
This policy protects personal representatives and executors from personal financial liability if a claim is made by a third party against the estate after distribution, and a Section 27 Notice was either not placed or had not yet expired. It also offers additional protection to beneficiaries who are not covered by Section 27 of the Trustee Act 1925, regardless of whether a Statutory Notice was placed.
Key Benefits
- Allows you to distribute the estate early, which is something beneficiaries often want
- Protects executors and beneficiaries from being personally responsible if someone makes a claim after distribution
- Provides additional peace of mind, even if a Section 27 notice was not placed
- Covers unknown risks that may arise
- Helps close the solicitor's file earlier with insurance protection
- Can reduce additional costs linked to the placing of the legal notice
Early Distribution (Unknown Dependants) Cover
This policy offers protection if you distribute an estate before the full six-month period following the grant of probate, as specified by the Inheritance Act 1975. It also provides cover in cases where a claim is made after the six month period but is still upheld by a court.
Key Benefits
- Allows the estate to be distributed earlier with insurance protection
- Protects executors from personal liability if a late claim is made
- Covers risks that could arise even after the 6-month period has passed
- Supports early file closure for solicitors once all checks are complete
- Gives extra peace of mind, especially where someone may have a valid claim outside of the legal timeframes
Missing Will Insurance
This policy protects the personal representatives, executors and beneficiaries from personal loss if a previously unknown will or a later will materialises after the estate has been distributed
Key Benefits
- Protects executors from liability if an unknown will was to surface later
- Beneficiaries can retain their inheritance with confidence, knowing they will not be required to return it.
- Gives additional comfort where all reasonable and necessary searches for a will have been carried out
Missing Beneficiary Insurance
This policy provides protection if a beneficiary - either known but missing, or unknown at the time the estate is being distributed - attempts to make a financial claim against the estate after the distribution has taken place.
Key Benefits
- Protects executors from claims by missing or unknown beneficiaries
- Beneficiaries can retain their inheritance with confidence, knowing they will not be required to return it.
- Covers situations where efforts to find a missing beneficiary weren’t successful
- Gives confidence after everything reasonable was done to find all beneficiaries
Lost Share Certificate Insurance
If a share certificate is lost or destroyed, this policy supports the reissue process. It protects against the risk of someone else finding and misusing the original.
Key Benefits
- Covers registrars if the old certificate turns up and is wrongly used
- Protects shareholders from personal liability if someone misuses the lost certificate
- One-off payment provides lifetime cover after the new certificate is issued
This is a non-exhaustive list of some of the more common risks we can source cover for but we are also able to assist with more bespoke/unusual risks which fall outside of standard policy coverage.