Executor & Inheritance Insurance and Court Orders

Executor & Inheritance insurance provided by DUAL Asset can be useful in a myriad of ways. Insurance policies can play a major part in aiding a solicitor to obtain the right judgement at court for their client. The costs involved in going to court and applying for a court order, can be significant and can sometimes take many years.

An insurance policy can be used to strengthen a claimant’s hand and avoid wasted costs. An example could be a property which is held as joint tenants by Mr T (the deceased) and his former partner Ms M. Research shows they were never married and Ms M left the UK decades ago. Genealogists can find no current records relating to Ms M. The executors now want to apply to the court to transfer the property into the sole name of Mr T. The executors can then sell the property and distribute the sale proceeds to the beneficiaries of Mr T’s estate. The executors believe that the judge would look more favourably on their application if they are seen to be protecting the interests of Ms M; that they are not simply applying to “disinherit” Ms M from her half share of the property. The court can then make it’s judgement subject to the insurance policy being taken out and if in the future Ms M appears, she can claim against the insurance policy for her half share of the sale proceeds.

Another example is applying for a Presumption of Death Order at court. A missing beneficiary policy can be part of that application to the court. In the unlikely event the missing person, who is the subject of the Order, is actually alive, the missing beneficiary policy will protect the executors and beneficiaries of the estate against claims from this person, seeking to regain his/her assets. In Scotland, insurance is nearly always required by the courts, under the Presumption of Death (Scotland) Act 1977 Section 6, against the risk of a person having an interest in the deceased’s estate and seeking to have the decree varied or recalled. Again, the insurance is seen as protecting the interests of the subject.

If you have a case you wish to discuss where insurance may assist your application to the court, please contact Kate Thorp, Manager – Executor & Inheritance Protection, DUAL Asset Underwriting – (0)20 7337 8775 – kthorp@dualgroup.com