By Kevin Bonner, Insurance Lead, Estatesure
A Section 27 notice placed in the UK’s official public record – The Gazette – and in local newspapers, is designed to protect personal representatives from claims from future creditors by notifying them when someone has passed away.
However, recently, some of the most forward thinking legal firms are exploring better ways to manage this process such as No Section 27 Insurance.
No Section 27 insurance is a type of indemnity coverage designed to protect personal representatives who either decide not to issue a Section 27 Notice or have issued one but still face potential concerns.
Kings Court Trust is a Bristol based legal firm which offers probate and estate administration services and was named winners of Probate Provider of Year – South for 2024 and as Probate Provider of the Year (Large Firms) at the 2019, 2020 & 2021 British Wills and Probate Award. Lee Rossiter, Operations Director, Kings Court Trust explains: “We had issues previously with squatters targeting properties advertised in the Gazette. Whilst this was rare, it did happen on a number of occasions. For the last few years, we have opted for Section 27 insurance which covers more than the notices, we see this as an enhanced product.”
Insurance can mitigate against these type of issues with unoccupied properties but Lee Rossiter highlights further benefits which include reduced administration time spent on the estate. “It’s an operational challenge for a volume provider to document the expiry date of notices in The Gazette, there is also additional work involved to arrange the notices to be placed,” he continues. “Using Section 27 insurance instead removes this administrative burden.”
The issue of consistency of pricing across the board can also come into play. Lee Rossiter confirms: “If there is a property within the estate we also need to place a notice in a paper local to that property, we find these prices can fluctuate greatly.
“We have reviewed our strategic approach to this again recently and decided to continue with the insurance option as to date we have not faced an issue and we feel Section 27 insurance help us offer a better and more efficient service to our clients.”
No Section 27 Insurance can also mean the mandatory waiting period of two months and one day for claims can be avoided. This can be particularly useful if the executors or administrators are keen expedite the distribution process. Financial cover is provided if a previously unknown creditor or beneficiary comes forward after the estate has been distributed.
For small or straightforward estates where the risk of unknown claims is low, No Section 27 insurance is now becoming a valid alternative to placing Section 27 notices.