An increasing number of dependents are having to pay the bills of a loved one long after they’ve died due to delays in the processing of probate applications, new research has revealed.
In addition to Covid-19 disruption and clerical errors, the significant backlog comes after a surge in probate applications were made before a planned rise in fees.
According to Direct Line Life Insurance, who published the figures, a third (31 per cent) of probate cases in the last 12 months have faced delays in closing an estate.
While many of these were as a result of the backlog, the report suggests that an increasing number of applications are filed with errors.
For example, one or more listed beneficiaries could not be located in 33 per cent of delayed cases, while there were difficulties proving the relationship with the beneficiary and the deceased in 29 per cent of cases. And in 16 per cent of cases, the executor of the will had passed away.
One recent study also suggests that there are currently 8,000 cases of unclaimed inheritance as of September this year – some many years old.
As a result of these delays, dependents are increasingly having to pay household bills and debts on behalf of the deceased out of their own pockets. And should they choose to delay these payments until as estate has been administered, they could be landed with hefty interest payments and penalties.
So, how can these issues be resolved?
The number one rule of later life planning is to plan early. This includes writing a watertight Will (which is regularly updated when circumstances change) and appointing a Power of Attorney (POA) to deal with your property and financial affairs, as well as your health and welfare, when you no longer hold the mental capacity to do so.
These two measures alone could significantly speed up the probate and care process, for example, when dependents need to access your bank account to pay for bills.
Commenting on the importance of writing a Will, Chloe Couper, business manager at Direct Line Life Insurance, said: “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.”
For support making a Will and protecting your family’s wealth, please get in touch with our expert team today.