Will writing in times of Covid-19

Is there an insurance product that can respond if things go wrong?

There is a great deal of commentary in the legal press regarding an increase in the number of individuals seeking to contest a will. It is reasonable to expect that Covid-19 will add to the concern going forward. Challenges involved in taking instructions for wills and attending to execution have been well documented since the country went into lockdown in March this year.

In the world today it is not uncommon for people to rely on a future inheritance as a means of getting them onto the housing ladder or achieving a desired life style. When a will does not quite go the way that was expected, human nature being what it is, disappointed beneficiaries sometimes look for an alternative solution. They, and the lawyers they instruct, will look closely at the circumstances surrounding the drafting and execution of the will to determine if there is a case to set it aside – or a potential negligence claim against the solicitor who was instructed. For wills that were instructed, drafted and executed during the pandemic, the microscope is likely to be turned up yet another notch.

Will challenges can cause a lengthy delay to the estate being administered, sometimes by months or even years. Increased costs can be incurred and can mount up very quickly, even when defending the most spurious of claims. The question that follows is whether there is an insurance product that will provide protection in the event that there is a challenge to a will? Yes, there is.

Why consider an Executor and Inheritance Policy?

Kate Thorp is the Manager of the Executor and Inheritance Protection team for Dual Asset Underwriting. She has over twenty years’ experience in this specialist area. Kate encourages law firms and executors to consider the Dual Asset’s Executor and Inheritance Policy if they have a ‘lockdown will’ and are concerned the validity of the will could be challenged, or it has already been challenged and the distribution of the estate is being held up. Policies are subject to an accompanying statement of facts being met or, if that is not possible, individual underwriting.

Kate explains that “DUAL Asset’s policy will provide protection for the personal representatives, the beneficiaries and their legal advisors. In the event of a challenge to the deceased’s will, the policy provides protection against third parties claiming:

• The will is fraudulent
• The will was not properly executed
• The deceased lacked the proper mental capacity at the time the will was made
• The deceased was subject to undue influence
• The deceased did not approve the content of the will.”

The policy also provides protection against other issues an estate could encounter during estate administration, such as, a new will being found, an Inheritance Act claim, a missing beneficiary coming forward, legal rights claims…the list goes on.

This issue is also relevant in relation to a firm’s professional indemnity insurance (PII). Even pre Covid-19 underwriters were concerned about the frequency and severity of claims against solicitors arising out of will writing and probate and estate administration. Predictably the Covid-19 Questionnaires that were a feature of the latest 1 October renewal, also focused on due diligence in relation to wills that were instructed during the pandemic. First and foremost it is important that firms are able to confirm they are aware of the risks and have robust processes in place to address them. However, we consider it would also be useful if firms were able to demonstrate knowledge and appropriate use of a policy such as that provided by Dual Asset Underwriting. We all know that things can go wrong and even when the work has been undertaken perfectly, there are people who will nonetheless chance their luck with a claim, no matter how little merit it has.

For more information regarding the inheritance and executor cover that is available please do not hesitate to contact Kate at Dual Asset Underwriting on 07519 129136 or email [email protected].

Dual Asset Underwriting is one of the DUAL group of companies which are also part of Hyperion Insurance Group. These companies hold delegated authorities from insurers to bind cover on their behalf and are remunerated by insurers for their services.