The Dangers of Household Insurance to the Executors of an Estate
People who take on the role of an executor of either a friend or family member's estate are in most cases unaware of the damage that such an act could have on their own wealth.
The Executor has a number of roles that he has to perform and these include
Ensure that the wishes detailed in the deceased's Will are complied and that he researches all assets and liabilities of the deceased's estate
They must obtain valuations of any assets at the time of death whether solely or jointly owned, and this will include any investments in companies, stocks and shares, end motor vehicles
One of the most important roles of the executor is to ensure that Insurance on any of the assets is in force until the estate is finalised.
The estate will have tax liabilities and the executor must complete these returns
Ant money owed by the estate must be paid before the beneficiaries
If any assets or liabilities are discovered after the estate has been distributed the executors will have to sort out the areas even if it is many e many years later.
The failure of any of the above duties, the Executors could face a claim from any of the beneficiaries of the estate and that will include, HM Revenue and Customs, or any disgruntled person to which the estate owed money.
Many household polices in the UK have an exclusion clause in respect of vacant property. This means that in the event of the property being unoccupied for more than 30 days, the cover under the household insurance policy may be invalid.
If the Asset is destroyed and there is not a valid insurance policy in force any beneficiary of the estate could decide to take legal action against the executors.
The Legacy Funding Corporation Ltd (LFC) has a bespoke Household Property Policy designed to protect the executors of the estate. This can cover buildings, contents and has options to be extended to include Squatters and Identity Theft cover.
The squatter's extension covers the costs to pursue a Legal Action to evict a person or persons who have gained unlawful entry to the Insured Property.
The Identity Theft extension covers the costs incurred to deal with all organisations that have been fraudulently applied to for credit, goods or services in the name of the deceased.
This Insurance Premiums can normally be deducted from the estate and therefore will be at no cost to the executors.
People who take on the role of an executor of either a friend or family member's estate are in most cases unaware of the damage that such an act could have on their own wealth.
The Executor has a number of roles that he has to perform and these include
Ensure that the wishes detailed in the deceased's Will are complied and that he researches all assets and liabilities of the deceased's estate
They must obtain valuations of any assets at the time of death whether solely or jointly owned, and this will include any investments in companies, stocks and shares, end motor vehicles
One of the most important roles of the executor is to ensure that Insurance on any of the assets is in force until the estate is finalised.
The estate will have tax liabilities and the executor must complete these returns
Ant money owed by the estate must be paid before the beneficiaries
If any assets or liabilities are discovered after the estate has been distributed the executors will have to sort out the areas even if it is many e many years later.
The failure of any of the above duties, the Executors could face a claim from any of the beneficiaries of the estate and that will include, HM Revenue and Customs, or any disgruntled person to which the estate owed money.
Many household polices in the UK have an exclusion clause in respect of vacant property. This means that in the event of the property being unoccupied for more than 30 days, the cover under the household insurance policy may be invalid.
If the Asset is destroyed and there is not a valid insurance policy in force any beneficiary of the estate could decide to take legal action against the executors.
The Legacy Funding Corporation Ltd (LFC) has a bespoke Household Property Policy designed to protect the executors of the estate. This can cover buildings, contents and has options to be extended to include Squatters and Identity Theft cover.
The squatter's extension covers the costs to pursue a Legal Action to evict a person or persons who have gained unlawful entry to the Insured Property.
The Identity Theft extension covers the costs incurred to deal with all organisations that have been fraudulently applied to for credit, goods or services in the name of the deceased.
This Insurance Premiums can normally be deducted from the estate and therefore will be at no cost to the executors.
David Collins - Managing Director
He launched the first Charity Trustee Insurance scheme for both corporate organisations and individuals in the UK. His company, St Olaf Insurance Brokers Ltd. was a founder corporate member of the Charity Finance Directors Group and the company's papers assisted the Government and the Charity Commission when they were considering the financial implications of Trustee Liability in the UK. His company has designed a number of bespoke insurance schemes for the "Not for Profit" sector.
Article Source:
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He launched the first Charity Trustee Insurance scheme for both corporate organisations and individuals in the UK. His company, St Olaf Insurance Brokers Ltd. was a founder corporate member of the Charity Finance Directors Group and the company's papers assisted the Government and the Charity Commission when they were considering the financial implications of Trustee Liability in the UK. His company has designed a number of bespoke insurance schemes for the "Not for Profit" sector.
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