• Probate lawyers have seen a 37 per cent increase in the number of families struggling to track down beneficiaries of an estate
• In 31 per cent of cases in the last 12 months there was an issue that delayed settling a deceased person’s estate
• There were 8,007 open cases of unclaimed inheritance in September 2020

 

New research amongst probate lawyers from Direct Line Life Insurance¹ reveals that almost a third (31 per cent) of cases in the last 12 months have faced delays in closing an estate.

The most common reasons causing issues when settling an estate were; one or more of the listed beneficiaries could not be found (33 per cent), there were difficulties proving the relationship with the beneficiary and the deceased (29 per cent) and the executor of the will had passed away (16 per cent).

If one of these issues arises it could delay the estate being settled by as long as a year. Finding the relevant assets and being unable to find one or more listed beneficiaries is likely to delay the process by more than nine months. The process could face a delay of more than eight months if the if someone contests the contents of the will or if the will wasn’t properly written, as the solicitor will need to prove the relationship between the beneficiary and the deceased.

Table one: Average delay to probate process and reasons for delay

Source: Direct Line Life Insurance 2020

Probate lawyers report that they have seen a rise in these types of issues, especially increased difficulty tracking down beneficiaries, this is predominantly down to families seeing each other less regularly (47 per cent), children and parents taking different surnames (23 per cent) and families falling out with each other more often (17 per cent).

Further research from Direct Line Life Insurance² found that there were 2,882 cases of unclaimed inheritance which were more than 20 years old, with the oldest being 46 years old and listed on 16^th June 1974. Overall, there were 8,007 cases of unclaimed inheritance recorded in the UK as of September 2020, with an average of six new cases raised every week in H1 2020.

 

Table one: Analysis of unclaimed inheritances 

Source: Direct Line Life Insurance 2020

The analysis also reveals that the number of unclaimed inheritances is increasing, with an 18 per cent increase in 2019 compared to 20 years ago and an 11 per cent increase from 10 years ago.

Chloe Couper, Business Manager at Direct Line Life Insurance, commented: “Organising probate can be a very stressful time for families and relatives who have lost a loved one. This situation can be exacerbated by issues which cause unnecessary delays to the process. This research highlights the need to discuss these complex issues with family members and for them to ensure that a will is written at an appropriate time, helping to reduce the likelihood of these issues arising.

“We would recommend that anyone going through this process checks their, or their loved one’s, life insurance policy, as they may be in a position to receive a lump sum which would help ensure legal fees and funeral costs are covered while any probate issues are resolved.”

 

     - ENDS -

Notes to Editors

1.      Research conducted by Pure Profile among 100 probate lawyers in the UK, conducted between 17th Feb – 24^th February 2020

2.      Analysis of Gov.co.uk data as of the 11th September 2020 on unclaimed inheritance accounts in the UK and the region of death for the deceased (https://www.gov.uk/government/statistical-data-sets/unclaimed-estates-list)

For further information please contact:

Claire Jarrett

PR Manager

Direct Line Group

Tel: 01651 832 411

Email: [email protected]

Alannah Sims

Citigate Dewe Rogerson

Tel: 0207 025 6563

Email: [email protected]  

 

Direct Line

Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel, pet and life insurance cover direct to customers by phone or on-line.

Direct Line life insurance policies are underwritten by Legal & General, registered office: One Coleman Street, London EC2R 5AA. Legal & General Assurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under number 117659. You can check the FCA register at www.fca.org.uk/register or call the FCA on 0800 111 6768. Legal & General will introduce customers who select the Funeral Benefit Option to Dignity Funeral Services, who are members of the National Association of Funeral Directors.

Customers can find out more about Direct Line products or get a quote by calling 0800 145 5522 or visiting www.directline.com/life-cover