Pre-paid probate plans are unregulated in the UK. The Financial Conduct Authority (FCA) strongly advise that you consider carefully whether these products meet your needs and offer value before buying as there are no regulatory protections in place for you.

In England, Wales and Northern Ireland, probate is the legal right to deal with someone’s property, money and possessions (their ‘estate’) when they die. It is usually required when the person who died owned property or significant assets in their own name. The equivalent in Scotland is called Confirmation.

The FCA have seen increased marketing of pre-paid probate plans in recent months, including from firms and individuals associated with funeral plan firms that they did not authorise, and whose customers lost money when they collapsed.

When designed and marketed appropriately, pre-paid probate plans could help people organise administration arrangements ahead of their death. But as the FCA do not regulate pre-paid probate firms, or the pre-payment of probate costs, there are no regulatory protections in place for you.

You should note in particular:

  • Pre-paid probate plans are not protected by the Financial Services Compensation Scheme. This means that should the company fail, there is no guarantee that you will receive your money back.
  • Commission is often included in the fee you pay. This increases the price of the plan. There is no commission ban on the sale of pre-paid probate plans (as there is for funeral plans).
  • Your money may not be safe if the firm should fail as there are no rules requiring the money paid into plans to be held in trust or backed by insurance.

See: Consumer warning on pre-paid probate plans | FCA