Confirmation and life insurance claim in Scotland

Weetod

I'm looking to make a life insurance claim and the insurer is requesting confirmation certificate but court are saying that one will not be produced as life insurance payment does not form part of an estate,

I have just received executor-dative status as no will was left. Can anyone also tell me how to word Box 2 on the confirmation application form declaration page where it states That I am:

buddy9

Weetod said:

I'm looking to make a life insurance claim and the insurer is requesting confirmation certificate but court are saying that one will not be produced as life insurance payment does not form part of an estate,

I have just received executor-dative status as no will was left. Can anyone also tell me how to word Box 2 on the confirmation application form declaration page where it states That I am:

Some insurance policies are payable to the estate (and then are listed on the inventory) and some are not. What are the circumstances with this policy ie. on whose life and who payable to? Did the person at the court elaborate on their reasoning?

Regarding para 2 content. Are you sole executor? What is the capacity in which you were appointed  'executor dative qua ……..'?

Weetod

buddy9 said:

Weetod said:

I'm looking to make a life insurance claim and the insurer is requesting confirmation certificate but court are saying that one will not be produced as life insurance payment does not form part of an estate,

I have just received executor-dative status as no will was left. Can anyone also tell me how to word Box 2 on the confirmation application form declaration page where it states That I am:

Some insurance policies are payable to the estate (and then are listed on the inventory) and some are not. What are the circumstances with this policy ie. on whose life and who payable to? Did the person at the court elaborate on their reasoning?

Regarding para 2 content. Are you sole executor? What is the capacity in which you were appointed  'executor dative qua ……..'?

Thanks for replying to me. 

The life insurance policy is due to get paid to the deceaseds wife. 

For the paragraph part, she is the sole executor and was appointed on basis of being his wife.

buddy9

Where the deceased’s wife is appointed executor dative, then there is an important question to ask about prior rights, and which will influence what needs to be entered in paragraph 2 (That I am) and whether a bond of caution is relevant.

1. If prior rights do not exhaust the estate, then the court will require a 'bond of caution' to be lodged before issuing the Confirmation.

2. If prior rights exhaust the estate, then this is included in para 2 and there is no need for a 'bond of caution'.

There is information here on bond of caution.

There is information here on prior rights

Weetod

buddy9 said:

Where the deceased’s wife is appointed executor dative, then there is an important question to ask about prior rights, and which will influence what needs to be entered in paragraph 2 (That I am) and whether a bond of caution is relevant.

1. If prior rights do not exhaust the estate, then the court will require a 'bond of caution' to be lodged before issuing the Confirmation.

2. If prior rights exhaust the estate, then this is included in para 2 and there is no need for a 'bond of caution'.

There is information here on bond of caution.

There is information here on prior rights

From what I've read, a bond of caution will not be required as the wife is to inherit the full estate. The estate just now also sits at 30k so under the 36k threshold.

buddy9

Weetod said:

From what I've read, a bond of caution will not be required as the wife is to inherit the full estate. The estate just now also sits at 30k so under the 36k threshold.

If the estate is no more than £36k then the sheriff clerk could have issued Confirmation along with the decree as part of the small estate procedure on request. Is it certain that this has not happened?

Weetod

buddy9 said:

Weetod said:

From what I've read, a bond of caution will not be required as the wife is to inherit the full estate. The estate just now also sits at 30k so under the 36k threshold.

If the estate is no more than £36k then the sheriff clerk could have issued Confirmation along with the decree as part of the small estate procedure on request. Is it certain that this has not happened?

We've not yet applied for actual confirmation due to not knowing what to put in box 2 on the declaration part of the application. 

I've asked the court for help with this part but they seem absolute clueless and it's always arrange a callback that never happens. 

buddy9

Under the small estate procedure the appointment of executor and issuing of Confirmation is a single process.

However, if the small estate procedure has not been used, and a decree has been issued, and there is now a need to apply for Confirmation, then here is a wording example for para 2. But make sure that the description used exactly matches the wording used in the decree. eg executor or executrix, wife or relict

That I am

the executrix-dative qua wife of the said deceased, conform to decree granted by the sheriff of [insert sheriffdom] at [insert place] on the [insert date] and have right by virtue of section 8 and 9(2) of the Succession (Scotland) Act 1964 to the whole estate of the said deceased.

small edit introduced

Weetod

buddy9 said:

Under the small estate procedure the appointment of executor and issuing of Confirmation is a single process.

However, if the small estate procedure has not been used, and a decree has been issued, and there is now a need to apply for Confirmation, then here is a wording example for para 2. But make sure that the description used exactly matches the wording used in the decree. eg executor or executrix, wife or relict

That I am

the executrix-dative qua wife of the said deceased, conform to decree granted by the sheriff of [insert sheriffdom] at [insert place] on the [insert date] and have right by virtue of section 8 and 9(2) of the Succession (Scotland) Act 1964 to the whole estate of the deceased.

Thank you so much for this, really appreciate it. 

What would be your advice for the issue we have for claiming the life insurance payment?

Should the life insurance payment show on the estate for confirmation? The lender is asking to be sent copy of confirmation but from what I was seeing online, it was suggesting that due to the policy having it as payment to the deceased's wife then it would not count as part of the estate. 

I'm now considering just adding it to estate anyway as there will be nobody else trying to claim any of the estate and the life insurance will not be enough to go over inheritance tax threshold

buddy9

‘Lender’?

My understanding is that if the sum is payable directly to the deceased’s estate, then it is treated as part of the estate. But if it is specifically for the benefit of the spouse, then it is treated as being in trust and not part of the estate for Confirmation (but included in IHT calculations); and is claimable by the trustee.

I cannot see any negatives in your pragmatic proposal.

(I have made a small edit to the declaration example above).

Weetod

buddy9 said:

‘Lender’?

My understanding is that if the sum is payable directly to the deceased’s estate, then it is treated as part of the estate. But if it is specifically for the benefit of the spouse, then it is treated as being in trust and not part of the estate for Confirmation (but included in IHT calculations); and is claimable by the trustee.

I cannot see any negatives in your pragmatic proposal.

(I have made a small edit to the declaration example above).

Sorry, meant the insurance company. 

After doing a bit more reading, I now believe that I've originally misunderstood the prior rights. 

Having done a bit more reading, I now believe that we may require a bond of caution due to the deceased having a child. The private work pension and life insurance are both asking for confirmation certificates, if this is due to them not having been written in trust hence being paid to the estate. Would we require a bond of caution if the total figure for these plus existing bank balance goes over 36k or would it be if it goes over the 50k?

Would I be correct in saying the spouse would only be given 50k of any of the cash showing in the estate due to the deceased also having the child? How would any balance - the 50k be divided? Does cash figure include any money in bank accounts?



I honestly can't thank you enough for all your assistance