How Early Distribution Insurance can help when distributing estates
30th June 2022
Delays with probate applications? Early Distribution Insurance may be the solution
Insurance to protect the estate against 1975 Inheritance Act claims is available from DUAL Asset for beneficiaries and charities, who may be seeking an early distribution. Solicitors and professional executors will quite often insist on waiting 10 months from the date of grant, to fully distribute an estate, to allow time for claimants to come forward. But with new figures from HMCTS showing a jump of 5,297 in probate applications in just one month from December 2021 to January 2022 and HMCTS moving resources to deal with a backlog of stopped applications, there may be delays in obtaining the grant. Then having to wait another 10 months from the date of the grant before the beneficiaries and charities can receive their inheritance, can cause financial hardship.
“Inheritance Act insurance, or its more commonly used name, Early Distribution insurance, has increased in popularity over the last few years,” says Kate Thorp, Manager of DUAL Asset Underwriting’s Inheritance and Protection department. “We provide this cover as standard under our comprehensive insurance policy, but we also issue many stand-alone policies. Most are a precautionary cover, where as an example, the beneficiary of the estate urgently requires the early release of their inheritance once the grant is obtained. Disposable income has been slashed for a lot of people and also charities are struggling with fewer donations. Insurance is there to protect both the executors/administrators and beneficiaries/charities of the estate, allowing the early distribution to take place without having to wait the 10 months. The policy providing cover, if such an Inheritance Act claim was to arise during this claim period. The policy runs in perpetuity, so it will even cover an out of time claim, which sometimes can happen.”
If you wish to discuss Early Distribution insurance, please contact Kate Thorp – Manager Executor & Inheritance Protection.
020 7337 8775 / 07519129136