Protecting Your Beneficiaries: A Case Study in Executor & Inheritance Insurance

As an England and Wales law news writer, you must be aware of the recent shocking case involving a deceased’s estate and a claim for £500,000. The executor of the estate received this claim six months after the estate had already been distributed to close family members. The claim was made by a former acquaintance of the deceased, who alleged that they were an unpaid carer of the deceased and that undue influence had been exerted on the deceased to change their will before passing away.

The claimant argued that the deceased did not have the capacity to make these changes and that the previous will, which had benefitted the claimant, should be reinstated. This situation put the beneficiaries of the estate in a difficult position, as defending proprietary estoppel claims can be complex, especially when based on verbal promises with no witnesses.

However, there was a silver lining in this case. The estate administrator had taken out a Comprehensive Executor & Inheritance Insurance policy before distributing the estate, which protected the beneficiaries in case of unexpected claims like this. The insurer took over dealing with the claim and hired contentious probate lawyers to defend the estate’s interests.

Despite more claims being received from other acquaintances of the deceased, the insurer determined that defending the claims in court would be challenging. After mediation, both claims were settled out of court, with the claimant’s and legal fees amounting to £300,000. This successful outcome allowed the beneficiaries to keep their inheritance without having to pay the legal costs.

This case highlights the importance of having comprehensive insurance policies in place to protect estates from unforeseen circumstances. Kate Thorp, Manager of Executor & Inheritance Protection at DUAL Asset, emphasized the importance of their insurance solution in avoiding a costly legal battle and ensuring the beneficiaries’ inheritance was preserved.

In conclusion, this case serves as a reminder of the potential risks involved in estate distribution and the importance of having proper insurance coverage to mitigate these risks. It also showcases the value of professional legal representation in handling complex estate disputes.