Executor indemnity insurance

tellyerworraldowivyer

Hi,
My elderly relative is one of two beneficiaries of an estate with a solicitor as the executor in their will.
The issue is that a “friend” of the deceased has written to the solicitors just after they passed away (now just over two years ago) and said that the deceased had told them that he had left everything to him in his will.
No other will has been found and there are no other wills on the will register.
The deceased was very particular and kept records dating back many decades, no other will was found in his personal records, and he would certainly have Madame or kept some type of record somewhere if he had made another will.
The solicitor now wants to take out indemnity insurance, costing around £8k.
To me this seems unnecessary, as the “friend” was asked to produce evidence of said will, it has not been heard of again for almost two years.
I know anyone can contest a will but when a random “friend” could possibly cost the beneficiaries £4k each, for what amounts to either a bit of banter, or a conversation that might not even have happened, this seems unfair and excessive.
Does anyone have any experience of this, and/or any advice?

Thanks.

Keep_pedalling

That is very expensive, but that is probably due to the fact that someone has claimed there is a newer will. The executor will be on the hock if one does turn up. What is the value of the estate? 

Hoenir

When did the executor of the estate last follow up on the claim? 

Grumpy_chap

tellyerworraldowivyer said:

Hi,
My elderly relative is one of two beneficiaries of an estate with a solicitor as the executor in their will.
The issue is that a “friend” of the deceased has written to the solicitors just after they passed away (now just over two years ago) and said that the deceased had told them that he had left everything to him in his will.
No other will has been found and there are no other wills on the will register.
The deceased was very particular and kept records dating back many decades, no other will was found in his personal records, and he would certainly have Madame or kept some type of record somewhere if he had made another will.
The solicitor now wants to take out indemnity insurance, costing around £8k.
To me this seems unnecessary, as the “friend” was asked to produce evidence of said will, it has not been heard of again for almost two years.
I know anyone can contest a will but when a random “friend” could possibly cost the beneficiaries £4k each, for what amounts to either a bit of banter, or a conversation that might not even have happened, this seems unfair and excessive.
Does anyone have any experience of this, and/or any advice?

Thanks.

If this has been two years since the passing of the deceased, it is time that the matter is brought to a close.

The "friend" is unlikely to ever produce the claimed later Will, but the Solicitor has to act professionally and protect their firm's interests in dealing with the Estate.  The fees will keep accruing all the while the matter is not resolved.

The two Beneficiaries will receive nothing all the while that the Executor is unable or unwilling to distribute the Estate.  The indemnity insurance seems a wise measure that allows things to progress while protecting everyone's interests.  How much is the £8k relative to the size of the Estate?

user1977

Can one or both of the beneficiaries take over as executor? (And then just take on any risk themselves rather than bother insuring)

tellyerworraldowivyer

The estate is worth over £900k. The issue is that some random “friend” can cost the estate £8k for a random, baseless claim.
I would have thought that a claim on a will needed a bit more substance than “my mate said they’ve left me money in their will”
I have experienced conversations myself, usually in the pub, where people are “promised” money, but they have the decency to to take it as banter.
The dealings with the estate are almost complete, so giving up the role of being executor is not possible as the majority of the work has now been done by the solicitors.

Flugelhorn

With an estate like that you may find that £4K is well worth the peace of mind and could be very very good value if another will does turn up ..

Grumpy_chap

tellyerworraldowivyer said:

The estate is worth over £900k. The issue is that some random “friend” can cost the estate £8k for a random, baseless claim.
I would have thought that a claim on a will needed a bit more substance than “my mate said they’ve left me money in their will”
I have experienced conversations myself, usually in the pub, where people are “promised” money, but they have the decency to to take it as banter.
The dealings with the estate are almost complete, so giving up the role of being executor is not possible as the majority of the work has now been done by the solicitors.

There may be IHT to be paid - presumably the Executor has dealt with that in the time frame required.

This has gone on for two years. 
Do the Beneficiaries wish to see the Estate resolved in a timely fashion and the assets distributed according to the Will?
The Executor is only willing to complete the distribution if the Executor is protected against possible come-back from the external claim of entitlement.  The indemnity policy seems a reasonable way to cover that risk - it is quite a low premium at £8k less than 1% of the sum insured.
The alternative to the indemnity policy would be the Executor expending time and effort (chargeable at Solicitor's rates) to fully establish that there is absolutely no residual basis in the external claim that has been made.  Irrespective of how much effort (and fee) is expended in this vein, the Executor is seeking to prove a negative which is always difficult to do to a conclusive outcome.

It really does seem the most pragmatic route forward to pay the indemnity and the two Beneficiaries can each have their share of the Estate - it's still £450k each so a handsome sum either way.

You described at least one of the Beneficiaries as elderly - do they stand to gain at all if the indemnity is not taken and the Estate is not distributed before the elderly Beneficiary passes on?

tellyerworraldowivyer

I take on board the comments, and if that is what the executors have decided, then the insurance will have to be paid, does not make it right in my opinion though, verified family members, then yes, I can see the need for such insurance.
Thanks for the replies.