Early Distribution Insurance

Early distribution insurance protects executors, personal representatives and beneficiaries from claims by unknown dependants under the Inheritance (Provision for Family and Dependants) Act 1975.

The Act allows people to claim against an estate if they feel that the estate has unfairly excluded them or not adequately provided for them.

This policy offers protection in two situations:

1. It covers cases where the estate is distributed before the required 6-month waiting period following the grant of representation under the Inheritance Act 1975.
2. It provides protection when the 6-month period has already passed, but a dependent makes a claim after this period, which is later validated by a court.

Distributing the Estate Early:

Normally, executors have to wait 6 months after the Grant of Probate is issued before they can distribute the estate in case any claims are made. This is also a requirement under the Act.

But there are times when it makes sense to consider distributing the estate before the 6-month period ends, such as:

• If the deceased had beneficiaries or dependents, who need the funds.

• When the estate is small and simple. Where there are no taxes or debts to pay then it could be possible to distribute the estate quickly.

• When the executors and personal representatives have a good understanding of the estate’s assets and liabilities. If there are no known issues, then it may make sense to distribute the estate earlier.

• When there are no known potential claimants. If there are no people who could claim against the estate, then there is less risk in distributing it early.

• The deceased may have expressed a desire to distribute the estate quickly. Perhaps they wanted to ensure their dependents didn’t struggle financially by waiting an unnecessary period for their inheritance.

If the estate needs to be distributed early, it is sensible to consider insuring against the risk of potential claims from unknown dependents.

A claim can come from a person who believes they fall under the definition of a “dependant” under the provisions of the Inheritance (Provisions for Family and Dependants) Act 1975, and:

1. Where you did not wait until the end of the 6-month expiry period (a claim could be made before the estate was distributed); or

2. Where the statutory period was met before distribution of the estate but where a dependant has a successful claim outside of the statutory limitation.

The people who fall under the definition of the Act are:

• The spouse or civil partner of the deceased

• A former spouse or civil partner of the deceased, if they were married or in a civil partnership for at least two years immediately before the death

• A child of the deceased

• A child of the family of the deceased (this includes stepchildren, adopted children, and children who were treated as children of the family by the deceased)

• A dependant of the deceased (this includes people who were financially dependent on the deceased, such as a parent or sibling).

The court can make several orders under the Act, including:

• An order for a lump sum payment

• An order for periodical payments

• An order for the transfer of property

• An order for the variation of the deceased's Will

So as you can imagine, Early Distribution Insurance claims can be sizeable.

The cost of early distribution insurance will vary depending on a number of factors, including:

• The size of the estate;

• The complexity of the estate and

• The likelihood of a claim being made.

Provided there are no known issues, our insurance cover, provided by CLS Property Insight, has an average cost of £223, with the minimum policy cost being £112 (including Insurance Premium Tax).

For a relatively modest cost, the insurance provides a significant peace of mind when distributing the estate early.

If a claim occurs on an early distribution insurance policy you must adhere to all the claims conditions listed in the policy.

Failure to do this could mean the insurer rejects your claim, or they could reduce the value the policy pays out if the breach of conditions increases the value of the loss.

You should ensure you read and understand all of the policy conditions listed in the policy.

Here are some pointers on what you should do in the event of a claim:

1. You should never tell a third party about the existence of this policy.

2. If there are circumstances that might cause a claim, you must tell the insurer in writing as soon as possible. You should also provide the insurer with as much information and documentation as you can.

3. Don't incur any costs relating to a claim without first consulting your insurer

4. Never admit liability or offer to pay or settle with someone else. You should refer the matter to your insurers claims team.

5. Pass all correspondence and requests for meetings to your insurer's claims team.

For full details of your claims conditions, you must read your policy wording or speak to the insurer's claims team for guidance.

If you have further questions, please visit our Probate Insurance FAQ page.

As an executor or administrator, you can be personally liable for defending claims and covering losses if you don’t have Probate Insurance, even when the claim is made against the estate, not directly against you.

Contentious probate isn’t limited to courtroom battles; it often begins with disagreements over who inherits, how the estate is handled, or whether the Will is valid.

These situations may involve someone being left out of the Will, a dispute over how much someone should receive, concerns about how the Will was created, or confusion when no Will exists. Claims under the Inheritance (Provision for Family and Dependants) Act 1975 are particularly common.

Such disputes can delay the probate process, increase costs, and expose executors to personal liability. It’s far better to identify and address potential risks early, before they escalate.

Arrange a FREE consultation with a Contentious Probate Solicitor.

They’ll assess your situation, confirm whether a claim is unlikely (which may help you qualify for Early Distribution Insurance), or provide expert guidance on how to protect both yourself and the estate from risk.

No known issues?

Probate Insurance can help protect against:

• Early Distribution Insurance – Covers the risk of claims under the Inheritance (Provision for Family and Dependants) Act 1975 when distributing the estate early.
• Section 27 Insurance – Protects against unknown creditor claims without needing to publish Section 27 notices.
• Missing Will Insurance – In case a later Will is discovered after the estate is distributed.
• Missing Beneficiary Insurance – Protects if a beneficiary not previously identified or untraceable comes forward to claim after the estate has been distributed.