One of the challenges that a Personal Representative (PR) may face when administering an estate is what they should do if a beneficiary cannot be located. Whether it is due to out-of-date contact information, an overseas relocation or a family estrangement, there are many reasons why a beneficiary might be difficult to locate. Whatever the reason, the absence of a beneficiary can delay the Probate process and expose a PR to legal risks.
Who is Responsible for Finding a Missing Beneficiary?
The PRs of an estate have a legal responsibility to administer and distribute the estate correctly. If a beneficiary’s whereabouts is unknown, then it is for the PR to take reasonable steps to search for them.
If there is a Will, then it is for the named Executors to identify and locate the beneficiaries who are entitled to inherit under the terms of the Will. This is generally a straightforward practice as the Will should contain the full names and addresses of the beneficiaries. However, the beneficiaries might have changed their name or moved address since the Will was made, and this is one of the reasons why it is sensible to keep your Will updated.
If there is no Will, meaning the person died intestate, then it is for the Administrators to identify who the correct beneficiaries are who are entitled to inherit from the estate. It can sometimes be slightly more challenging to identify and locate the beneficiaries when there is no Will, and it may well be appropriate to contact a genealogist to prepare a family tree to make sure all the potential beneficiaries in a class are identified.
How Can a PR Find a Missing Beneficiary?
If a PR has identified who the beneficiaries of an estate are but are unable to locate them, then they have several options available to them, such as:
Making investigations themselves by speaking to the deceased’s family and friends to see if they have had any contact with the missing beneficiary.
Advertising in local and national newspapers to see if the missing beneficiary comes forward.
Instructing a tracing agent to assist with the necessary investigations.
Instructing a genealogy company who can search the birth, death and marriage registers. They can also make further investigations with DWP and the Prison Service, if necessary.
How Can a PR Protect Themselves?
If a PR fails to make reasonable efforts to locate a missing beneficiary and that beneficiary comes forward later, then the PR could be personally liable and find themselves having to pay out to the beneficiary.
Therefore, it is essential that the PR takes reasonable steps to either locate the missing beneficiary or to protect themselves if the attempts prove to be inconclusive.
Some options that the PR can use to protect themselves include:
Placing a deceased estate notice in The Gazette which encourages creditors and beneficiaries to come forward. The level of protection from these notices only extends to claims from unknown creditors rather than beneficiaries named in a Will. These notices also only protect the PR, not the other beneficiaries.
Obtaining missing beneficiary indemnity insurance can provide protection for the PR and other beneficiaries from a future claim, should the missing beneficiary come forward later. To do this, the PR must be able to prove they have taken the reasonable steps to locate the beneficiary, including involvement from the genealogists.
Making a payment into the Court Funds Office provides the PR with good discharge. Again, the PR must be able to prove they have taken the reasonable steps to locate the beneficiary themselves and there are certain other conditions that must also be met. This option can also be costly and is not always preferrable and so legal advice should be sought if this is option is being considered.
The PR must consider these options carefully, factoring in both the value of the estate and the risk of potential claims being made before making any decisions. The PR should consider obtaining legal advice in this situation so that they can make an informed decision.
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