Learn more about the tangible benefits to legal firms of Executor and Inheritance Protection Insurance here.
Executor and Inheritance protection provides peace of mind for executors and administrators – as well as certainty for beneficiaries, if challenges arise post-distribution. For premiums starting at £275 (plus tax) the policy pays out for proven claims. In worst case this could mean paying out the entire value of the estate again. The policy also covers related defence costs – all without recourse to the innocent beneficiaries who have already inherited and their legal representatives.
Does your firm understand the risk involved in the estate administration process?
There is a tangible financial risk in terms of third parties staking claims to their share of a deceased’s estate. Exposure to potential claims is therefore twofold: 1) to your firm 2) to your client. Executor and Inheritance Protection Insurance from Legacy Funding Corporation is designed to provide comprehensive insurance.
The more probate clients you take on, the greater the risk that your firm will be exposed to. Our litigious society means that at virtually every stage of life (and death) an opportunity will arise for a case to be made against a corporation or individual in one shape or form. We’re probably preaching to the converted here, but does your firm really understand (and cover itself against) the risks of claims from your clients or even from third parties?
During the estate administration process your firm will take on significant responsibilities and potential liabilities on behalf of your client. Whilst it is your role to make sure the deceased’s wishes are respected, you must also look after the interests of the beneficiaries. Taking simple steps to ensure risk is understood and insurance is right and proper will make sure the process runs as smoothly as possible.
How can your firm protect itself?
Even the most astute and successful firms are exposed to risk of claims from known and unknown persons and organisations. If claims arise then part of your responsibility will be to investigate and manage the allegations. Investigations are extremely time consuming (with little financial reward). More notably, any claims against your firm will impact Professional Indemnity Insurance (in a negative way). Executor and Inheritance Protection Insurance from Legacy Funding Corporation is a way to be proactive in your approach to risk and cover yourself with a belt and braces policy.
Your clients will immediately recognise the value of the policy
The policy is an easy sell to your clients as it has a relatively low premium and offers a very high level of cover. Your client will appreciate the cover against claims brought against her or himself and you will enjoy the peace of mind that you are doing right by your firm.
Cover includes up to £10,000,000 cover and 7.5 years’ discovery period. There is also access to dedicated claims, legal and bereavement advice help lines.
Peter suggests: “Tell your client how the appearance of a missing beneficiary not known at the time of distribution can impact them. There could also be the discovery of a will after an intestacy distribution. There may even be a more recent will. Perhaps challenges to charitable legacies by somebody not named in the will could arise.“
Aside from Inheritance Tax, your client could be liable to other unexpected taxes. It could also be the case that a payment went unknowingly to a fraudulent beneficiary.
Executor and Inheritance Protection Insurance is currently enjoying some positive publicity in the media and we believe this specialist insurance will soon become ‘standard’ practice when dealing with probate work.
The key benefits of the policy make it a valuable option for your firm and your clients
Executor and Inheritance Protection Insurance from Legacy Funding Corporation covers the risk implications to executors and administrators, as well as beneficiaries (as challenges can arise post-distribution).
Comprehensive policy cover includes
- A missing beneficiary that appears after the estate is distributed.
- A will comes to light changing the entitlement to the estate.
- There is a challenge against the validity of the will because it is fraudulent, was not properly executed, or the deceased lacked mental capacity.
- Claims under the Inheritance Act 1975 for financial provision.
- Identity fraud by entitled beneficiaries.
- A charity exerts a claim on the estate.
- A charitable legacy is challenged.
- An unknown tax liability (other than IHT.)
- Claims from unknown creditors.
Peter Collins, Director of Legacy Funding Corporation, explains: “There is a tangible financial risk in terms of third parties staking claims to their share of a deceased’s estate. If the courts uphold third party claims then executors can be financially liable to settle the third party claims out of their own pocket.”
How to register
For a limited period Legacy Funding Corporation is offering free registration to the online portal. Register online to arrange cover for your clients – most quotations take less than a minute, with immediate policy issue for estates up to £1m. You can then arrange the policies immediately. On registration you will be issued with a unique user name and password to log into the online purchasing portal. The online system covers all of the UK and the Republic of Ireland. Use the portal to secure quotations and arrange policies for your future probate instructions.
For more information, contact LFC on: (t) 08448 480 380 or enquire here.