INDEMNITY INSURANCE

When dealing with intestacies, it is recommended that missing beneficiary indemnity (MBI) cover is obtained in order to protect the administrator and heirs from claims to the estate by unknown or untraceable heirs. There will inevitably be times when not all the beneficiaries can be located. Unknown relatives may come forward and submit a claim to an estate. We can arrange suitable MBI cover and provide comprehensive indemnity reports.

We provide a single price quote for such cover. This includes:

  • The Premium

    Normally 1% to 2% of the limit of the indemnity: If the estate is £100,000 and there are 10 stems to the tree with the heirs on one stem missing, the premium will be 1% to 2% of £10,000 = £100 to £200.

    Alternatively it may be advisable to indemnify the full estate as a precautionary measure.

    The premium also includes insurance premium tax of 5%.

  • Kin report

    In order to obtain MBI cover, it is necessary for us to produce a report for the insurers detailing all of the work that has been undertaken in the search for heirs. All search criteria must be fully satisfied.

There is the added option to include an escalator clause. This option covers inflation and increases the limit of indemnity by 6% per annum over six years. Add approximately another 0.5% of the sum insured to the premium.

There is also an option to cover against a will being found. Naturally this increases the premium and there are a number of requirements that need to be satisfied before the insurers will provide cover.

The solicitor is required to:

  • 1. Speak to whoever cleared the deceased's property and confirm that all paperwork found was checked for any reference to a will.
  • 2. Confirm whether or not the deceased was involved with any charitable organisations. Paperwork and bank statements must be checked in this regard.
  • 3. Confirm that all known friends of the deceased have been questioned regarding a possible will and record the outcome of this.
  • 4. Instruct us to carry out a will search.