Tailored insurance policy indemnifying both Executors & Beneficiaries against potential Inheritance Act claims, facilitating earlier distribution within the six month Inheritance Act claims period
The Personal Representatives are responsible for correctly distributing the deceased’s estate. It is possible for certain individuals to make a claim against the estate under the Inheritance (Provision for Family and Dependants) Act 1975 if they are excluded from, or believe they are not suitably provided for, in the Will.
An individual wishing to make a claim may serve proceedings within ten months after issue of the Grant or Probate. In the event estate funds are distributed prior to the expiry of this ten-month claims period, and there are insufficient funds remaining to meet any successful claim, the Personal Representatives would be personally liable.
When advising Executors and administrators, it is important to make them aware that they are responsible for correctly distributing estate assets. They need to understand an individual could challenge the provisions of a Will under the Inheritance (Provision for Family and Dependants) Act 1975, and the risk of personal liability in the event of a successful claim. If you are acting as executor, you should similarly inform the beneficiaries of the potential risk and your approach to mitigating personal liability.
Understandably beneficiaries can become frustrated when presented with ‘another’ delay to the distribution of estate funds, particularly where no claims are anticipated. Early distribution insurance can offer a helpful alternative, protecting the personal representative and beneficiaries in the event of a successful claim following distribution within the claims period. As a legal professional, you play a vital role in ensuring your clients understand the potential risks and providing suitable advice to help minimise liability.
Estatesearch is an Introducer Appointed Representative of Lawsure Direct Ltd, authorised and regulated by the Financial Conduct Authority
Indemnifies Executors & Beneficiaries against potential Inheritance Act claims to facilitate earlier distribution