Missing Will Insurance

Missing Will Insurance is an important cover for executors and personal representatives who can be liable if the estate is not distributed in line with the latest Will.

If a newer Will is found, which results in a claim against the estate, beneficiaries could also be made to repay some or all of their inheritance to redistribute the estate.

This can happen. Versions of a Will can be lost, misplaced, or stored in a location no one knows about, and new Wills can be created without the knowledge of family members.

Wills can be hard to trace as they can be stored anywhere. They can be stored in the following locations:

In the home;

• By other family members;

• By a solicitor, Will writer or other professional advisor; or

• By a bank

It is easy to imagine how a Will everyone believes is the latest version turns out not to be.

Now, imagine this Will was used as the basis of distributing the estate, but the new Will is found that is different.

The new Will may require the estate to be distributed differently. Or the new Will could includes different beneficiaries.

This would likely lead to a legal dispute over the previous Will and how the estate was distributed.

Without insurance, this would create a potentially significant liability for the executors, personal representatives, and beneficiaries.  They would have to fund any legal defence.  If the challenge is successful, they would have to repay the beneficiaries contained in the new Will.   

Missing Will Indemnity Insurance can be purchased in isolation or combined with a missing beneficiary insurance policy for greater protection.

No one can be certain that the Will being used as the basis of distribution is the most current will. Even if a missing will search is conducted, as not all wills are registered with the National Will Register.

Where estates are being distributed as an intestacy, no one can be certain that there isn’t a will somewhere waiting to be discovered.

If the estate is distributed on the wrong basis, the executors and personal representatives can be held liable to put things right.  The beneficiaries may also need to repay their inheritance if they are not provided for, or on the same basis in the new will.

In the absence of insurance, this scenario could:

• Be a financial disaster for those involved.
• Lead to a significant professional indemnity insurance claim if a firm was providing a full estate administration or professional executor service.

The latest market data suggests that 20% of people who have a Will, later updated it with a different provider.  This could mean that 7 million Wills are out of date.

The above highlights the importance of offering Missing Will Insurance to every client or purchasing the cover if you are acting as the executor.

Step 1.  Conduct a Will Search with the National Will Register, who search of over £10 million records to help reduce the risk of an unknown will being found.  However, this does not eliminate the risk as not every Will is stored on the National Will Register.

Step 2. Check with family members and friends to see if they are aware of a Will.  It is possible that there may be a paper copy somewhere, such as with a local solicitor, accountant or family member.

Step 3. Undertake a search of the deceased's house to check for a paper copy of the Will.

Once you are confident there are no known issues in Steps 1 to 3 above, you can arrange Missing Will Insurance for your peace of mind.

Missing Will Indemnity Insurance enables the executors or personal representatives to distribute the estate. It gives them peace of mind that should a new Will appear in the future they have financial protection.

If this happens, Missing Will Insurance would fund:

• The legal defence costs associated with the challenge to the Will

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

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

If you are an executor or beneficiary of an estate, you should consider purchasing Missing Will Insurance. It is a relatively inexpensive way to protect yourself from financial liability and to ensure that the deceased person's wishes are carried out.

The Missing Will Insurance policy provided by Insuristic runs in perpetuity, which means there is no expiry date to the policy.  This provides long-term peace of mind for executors, personal representatives, and beneficiaries.

The premiums are small, especially when you consider the risk the policy protects and the cover period.

The cost is usually calculated as a percentage of the total estate value, with the average premium during 2024 being £450. 

The actual cost will vary depending on the size and complexity of the estate.

If you receive a claim on Missing Will Indemnity 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.