When a person is left to administer a will or divide an estate based on the rules of intestacy, they’re taking on a significant role which includes several different responsibilities. This role is often time-consuming and unpaid, as well as being very stressful, especially if the executor is inexperienced and dealing with grief at the same time. An executor of an estate is a serious legal responsibility. If mistakes are made, they can face unlimited personal liability with no legal or financial protection. Several different types of insurance can be taken out to help protect executors. The purpose of this article is to discuss a few of these types of insurance and what they cover.

Missing beneficiary indemnity insurance

Missing beneficiary indemnity insurance covers the executor of the estate in the event that any beneficiaries make a claim after the estate has been divided. Genealogists can be used in complex cases to trace various family members using records. However, despite their knowledge and experience, some relatives may not be found. This can be down to lost records or illegitimate children. Missing beneficiary indemnity insurance covers the executor against claims from beneficiaries that come forward after the estate has been divided. There are two types of missing beneficiary indemnity insurance. The first type is specific insurance when a known missing beneficiary can’t be located or contacted. The other type is general missing beneficiary indemnity insurance. This covers the potential for there to be missing heirs that are unknown. The specific insurance is more expensive as there is a higher risk of a beneficiary coming forward. If a beneficiary does come forward afterwards and the executor has this insurance, the insurance provider will pay out to the missing person based on the details in the policy.

Missing will insurance

Most often, it is assumed that the deceased left a will; this may have been discussed in the past. On occasion, however, the executor is unable to locate the will. This can potentially leave beneficiaries without their entitled share of the estate. If the will is recovered at a later date after the estate has been divided, then the executor is liable for these mistakes. To prevent claims against the executor in this situation, they can purchase missing will insurance. This insurance will pay out the money entitled to the beneficiaries if a will is discovered at a later date and the money cannot be recovered from the estate or the beneficiaries. The insurance also covers any action the claimants may bring against the estate executors.

Probate house insurance

When a house is no longer occupied after an individual has died, it leaves it vulnerable to break-ins, natural damage and theft of items inside the property. Probate house insurance is designed specifically to protect administrators of the estate in the event that anything happens to the property during this period. It’s a very flexible form of insurance that can be taken out for short periods of time whilst the estate is being dealt with and sold. Probate is the process in which the executor is granted authority to deal with the estate; before this, the property cannot be sold, and items cannot be given away to beneficiaries. This process can take several months, which is why probate insurance is essential to protect the property and possessions within. The insurance will require someone to go and visit the property periodically to inspect it and report any damage. This is usually done by one of the beneficiaries or the executor of the estate.

Insurance can provide protection for the executors in several different situations. A professional executor insurance company or company specialising in genealogy will be able to advise and assist any executors of the estate looking to protect themselves from claims. Executors must understand that they can face unlimited levels of personal liability if mistakes are made within the division of the estate. Many specialist insurance providers will be able to create a personalised policy to suit your particular circumstances. In most cases, the distribution of an estate is a simple process. Where this is not the case, insurance is there to fall back on and give peace of mind that the executor is covered.

Missing beneficiary indemnity insurance

Missing will insurance

Probate house insurance

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Insurance to Protect Executors