Missing Beneficiary Insurance

Missing beneficiary indemnity insurance is an important consideration for executors, administrators and beneficiaries. It will protect them should a missing beneficiary claim a financial liability against the estate after it is distributed.

Insurance can be purchased where a Beneficiary is either:

• Known to exist but was missing; or

• Unknown when the estate was distributed.

Examples of scenarios where this could happen are:

• A beneficiary is recorded in a will or a genealogist report but their location is unknown; or

• no one involved in administering the estate knew about the missing beneficiary.

Missing beneficiary insurance covers:

• The legal defence costs associated with the challenge by the missing beneficiary;

• The payment of damages and money owed to Beneficiaries if their legal challenge is successful;

• Any other costs incurred by the insured with the prior consent of the insurer.

In the absence of insurance, these costs would need to be funded by the executors or administrators of the estate. If the missing beneficiary's legal challenge is successful, the beneficiaries may also be required to repay their share to the estate so it can be redistributed.

This is why anyone involved in the administration of an estate, should consider missing beneficiary insurance.

The policy can be purchased in isolation or it can be combined with a missing will insurance policy to fully protect the executors and the estate.

The cost of missing beneficiary insurance can also be reclaimed as an estate expense. 

Missing beneficiary insurance should be considered when:

• The estate is large. The larger the estate, the more likely it is that there will be beneficiaries who are difficult to locate.

• The estate is complex such as it involves businesses or trusts, which may make the estate more difficult to distribute fairly.

• The beneficiaries are young or elderly may make them more difficult to locate.

• The executor or administrator is inexperienced as this could make it more likely a beneficiary is missed.

If you have any questions about missing beneficiary insurance, please start an online chat or Contact Us.

If there aren’t funds in the estate to pay for the insurance protection upfront, you and the beneficiaries don’t need to worry.

Insuristic customers can fund the cost of any of our Probate Insurance Policies with our partner, FSL Finance.

The loan is simple to arrange, with 90% of applications being accepted immediately.

There are no arrangement fees or early repayment charges. 

Once a loan is approved, the money is paid to Insuristic to finance your insurance policies.  You will then need to pay FSL Finance a monthly amount until the loan is repaid.

If you need cover before the loan is repaid, we can help you.  Instructions of what to do in this scenario will be provided in your quotation.

You can find out more or start an application on our Probate Loans page.

A missing beneficiary indemnity insurance policy contains some clauses that you must comply with before you buy a policy. For example:

• You will need to confirm that a comprehensive genealogy report and family tree have been produced. You will need to provide copies when you request a quotation. You can find out more about Probate Genealogy or find a professional genealogist here.

• These reports will need to be produced and verified by a specialist provider who has researched at least 3 generations. The reports should confirm there are no potential missing beneficiaries nor are further investigations required.

• If there is a known beneficiary who may be entitled to a share of the estate, you will need to confirm they cannot be traced despite your investigations before the start of the policy.

• You will also need to confirm that none of the people insured on the policy are aware of any other party having an interest in the estate who is not benefiting from it at distribution.

• Lastly, if a Statutory Section 27 Notice has been placed, you will need to confirm no unknown beneficiaries have come forward. You can also buy Section 27 Indemnity Insurance from Insuristic.

So before you request a missing beneficiary insurance quote, you should appoint a professional to conduct a genealogy search for you.

If you receive a claim on missing beneficiary insurance 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.