In entering into such an arrangement, the executor is not entering into
any contractual relationship, but leaving it for the beneficiaries to do
so, if they so wish. Instead the executors are providing confidential
information to a stranger to enable that stranger to exploit such
information for their own commercial gain.
It will not enable the estate to be wound up more quickly, or absolve
the executors from needing to consider and validate any claim.
It might be beneficial to consider instructing the agent to try and
trace the missing beneficiaries. If unsuccessful, their report could
form the basis of an application for missing beneficiary insurance,
which might enable the estate to be fully administered with any
successful claimants being paid out by the insurers. This arrangement
has received judicial blessing.
With regard to the underlying question, whilst generally the costs of
tracing a missing beneficiary fall against the residuary estate, there
are instances where it would be seen as reasonable to charge such costs
against the missing beneficiaries’s entitlement.
Paul Saunders