Can a beneficiary take out Indemnity Insurance?

Tulip85

Can a beneficiary take out Indemnity Insurance to protect themselves from having to repay any part of their inheritance should there be a further claim on the estate?

sheramber

https://forums.moneysavingexpert.com/discussion/6656131/can-a-beneficiary-take-out-indemnity-insurance

who would be making that further claim on the estate?

It is the executor’s duty to establish all possible claims before paying out any inheritance.

Yorkie1

OP has another thread, not sure if it throws light on this particular question?

What will happen if I, as a beneficiary, refuse to sign Receipt and Release/Indemnity? — MoneySavingExpert Forum

Keep_pedalling

A administrator can but I am pretty sure a beneficiary can’t.

user1977

It's the same issue, easier if you keep it all to one thread.

gplion55

The executor/administrator (s) of the will have this as their duty and if there are doubts in this direction should discuss this with a solicitor. A beneficiary receives their inheritance and has no further responsibilities.

If a claim should later show up, then it is the responsibility of the executor (s).

If a solicitor is the executor, they should already have professional insurance for this.

From "The Gazette" :

Beneficiaries in the UK are not legally required to take out indemnity insurance, but they may be required to sign an indemnity or agree to the estate purchasing Missing Beneficiary Indemnity Insurance (MBI) to protect executors. This usually happens when distributing an estate quickly, or if a beneficiary or a will is missing.

Tulip85

https://forums.moneysavingexpert.com/discussion/comment/81892109#Comment_81892109

We fear that the executors have another ‘hidden’ Will that entirely excludes some beneficiaries. If this Will was to be ‘discovered’ after the Estate has been divided, this might result in us having to pay back our inheritance if we have signed the indemnity.

So, is it possible for us to take out our own Indemnity Insurance to protect us against such a chargeback? We would need to protect less than £300,000 total. What might that cost us?

TIA

Keep_pedalling

if such a will existed, why would they go to the bother of using the old will, distribute the estate then try to claim it back?

Sorry but that makes no sense.

Tulip85

I agree that it makes no sense whatsoever, however the people involved (whilst they do not need the money), are intent in causing as much stress, expense and ill-will towards our late Father’s children as possible and have continually demonstrated that in their actions towards our Father, myself and my siblings.

(e.g. Despite our having a half share in the family bungalow - and my being his Executor and Trustee - the locks were changed without our knowledge and we were denied access because step-mother had removed me as executor on her will).

Mands

https://forums.moneysavingexpert.com/discussion/comment/81892487#Comment_81892487

I think you will struggle to find insurance to cover this.

This is comparable to trying to insure an unroadworthy car which is likely to lose the rear offside as soon as it gets on the motorway. You know the conditions, the insurer does not.

You are suggesting the executors are going to breach their fiduciary duty to … mess with you?

Tulip85

https://forums.moneysavingexpert.com/discussion/comment/81892976#Comment_81892976

Absolutely. Previous experiences with these people have already demonstrated their intent towards us.