New report collates creditor details on a deceased person within 48 hours and provides added protection to the executors of the estate.
10 July 2017 – BRISTOL, UK: The inefficient process of waiting for the publishing period of a statutory Section 27 notice (under the Trustee Act 1925 for England, or the Trustee Act 1958 in Northern Ireland) in The Gazette to expire, locate creditors and mitigate risk to executors is set to be transformed with the launch of the Estatesearch™ Credit & Liabilities Report. Risq has worked in strategic partnership with Experian to provide access to comprehensive creditor and account details on a deceased person’s estate via a secure online portal. This milestone delivers an innovative solution in line with the Steering Committee on Reciprocity (SCOR) published guidance for bereavement services and Estate Administration due diligence. Using a combination of digital records and insurance protection, the Estatesearch™ Credit & Liabilities Report will make the process far more efficient, providing information and alerts on creditors within 48 hours, allowing for early distribution to be made while mitigating the liabilities to executors, administrators and personal representatives.
The first priority is to check if an estate is bankrupt or insolvent. An insolvent estate is when a deceased person's debts are greater than the total value of assets, and therefore money is owed to their creditors. The rules of bankruptcy apply to insolvent estates, in that groups of creditors must be paid in a specific order of priority.
The next step is to publish a deceased estate’s notice (under the Trustee Act 1925 for England, or the Trustee Act 1958 in Northern Ireland) in both The Gazette and a local newspaper to ensure that sufficient effort has been made to locate creditors, prior to distributing the estate to beneficiaries and protecting the executor or trustee from being liable from any unidentified creditors.
The online service, believed to be the first of its kind, is the result of a close working relationship between Risq and Experian’s Partnerships and Alliances team. Estatesearch™ accesses the Delphi and ExPin services to identify liabilities associated with the deceased estate. The main features of ExPin enables an improved matching engine that will mean an increase in data returned as well as a reduction in false positives, providing even greater confidence in the results.
As Colin Blears, Director of Risq Ventures explains “Administering the estate of a deceased person can be an extremely stressful and emotional process for the family and professionals involved. With an increasing number of consumers using online services, the process of finding information on the deceased’s financial liabilities is becoming harder. Yet publishing a Section 27 statutory notice and an advert in a local newspaper for a period of at least 2 months or replacing with an indemnity policy to protect the executors and administrators, still remains the most common practice by probate professionals."
“However, this approach can cause disruption to the family, delays in the process of estate administration and only opting to use insurance for speed can be seen as taking a light touch. The Estatesearch™ Credit & Liabilities Report provides a more efficient and reliable alternative in a fraction of the time compared to what many would consider a rather slow and unsatisfactory process in today’s digital world.”
The Estate Search Credit & Liabilities Report includes:-
UK creditor data (banks, building societies, payday loans, store cards, online gambling, etc), both secured and unsecured
Previous address history
Solvency warnings, Bankruptcy, Individual Voluntary Arrangement (IVA) / County Court Judgements (CCJ)
Alerts to signpost professionals on financial affairs or liabilities that require further investigation
Report refreshes up to the date of distribution of the Estate
The Estatesearch™ Estate Administration Protection, underwritten by the UK insurance arm of Munich Re, allows early distribution of the estate, while protecting the Executors and Beneficiaries against a subsequent claim from an unknown creditor, including claims from HMRC, health providers, bank, building society, mortgage lender, credit card provider, direct debit, utility companies and local authorities.
The scheme still allows the Executor to continue to place a Section 27 statutory notice, with the Protection applicable just four weeks from date of publication.
The Estatesearch™ Credit & Liabilities Report including protection for executors, administrators and personal representatives is now available and costs £185+VAT which is chargeable as a disbursement to the estate. For further information go to www.estatesearch.co.uk
Alastair Luff Director of Products, Consumer Information Services, UK & Ireland at Experian said; “Our work with Risq Ventures demonstrates our commitment to innovation. Risq Ventures have identified a new sector that could benefit from a digital, data-driven solution. The new Estatesearch™ Credit & Liabilities Report is powered by our Experian ExPin, providing exceptional data match rates which ensure faster decision for consumers. ExPin ensures you won’t have to work with fragmented or siloed data, improving decisions and creating a better experience for you and your customers. It utilises our wealth of experience within the data world, giving help and guidance, and data matching capabilities.”
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About Risq Ventures
Founded in 2015, Risq Ventures Ltd (Risq) is a private investment firm, specialising in growth acceleration for innovative UK companies serving the financial services and legal sectors. Risq Ventures Ltd is an Appointed Representative of Momentum Broker Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
Risq comprises a team of experienced entrepreneurs who have successfully taken businesses from concept through formation and growth to successful trade sale in the property, insurance and tech industries. Risq works with key stakeholders to make investments in businesses, identify mergers or acquisitions, and strategic alliances in the residential and commercial property sectors. Its most recent investment was in Terrafirma Mine Searches Ltd in October 2016.
Estatesearch™ is a trading division of Risq Ventures and has been developed by Risq in conjunction with market knowledge experts, providing a solution for probate professionals to identify and mitigate the financial liabilities associated with a deceased estate. For further information visit www.risq.co.uk