What happens in the event of a death?

In the event of a Client passing away, the following outlines the Adapt IHT Insured Claim Process.

 

A beneficiary or representative notifies Blackfinch of the client’s death and the potential claim. Please ensure that we are notified as soon as possible as the insurers also need to be notified within 6 months of a client’s death.

 

Blackfinch issues a Death Claim Form requesting key details, including:

a. Policyholder and Beneficiary information

b. Cause and circumstances of death

c. Medical practitioner details

d. Certified copies of the death certificate and identification

 

a. If the death occurred abroad, a Death Occurring Abroad Questionnaire is also issued.

b. If needed, a General Practitioner (GP) Report is requested to support medical verification.

 

Once the completed Death Claim Form is received, Blackfinch reviews the documents and forwards them to the insurer.

 

The insurer conducts due diligence and medical checks, then confirms whether the claim is accepted or declined.

 

Blackfinch informs the beneficiary or representative of the insurer’s decision.

 

If approved, the insurer pays the claim amount to Blackfinch as Corporate Trustee. Importantly, on death, the insurer will pay the benefit into the trust, not into the deceased’s estate.

 

After completing due diligence Blackfinch, as trustee, can use or lend funds to the estate to help pay IHT and/or distribute funds to the beneficiaries in the trust deed. The trust is irrevocable, meaning it cannot be cancelled once established. We therefore strongly recommend that customers take independent legal and tax advice before signing the trust deed.

 

If no beneficiary was named, the funds are usually paid to the deceased’s estate via the executor or administrator, once probate documentation is received.