Missing Beneficiaries and the Trustee Act: Paying Into Court

Why Paying Into Court Is Sometimes Necessary

When a beneficiary named in a will — or entitled under intestacy — cannot be located, the executor cannot simply distribute their share to other beneficiaries. Doing so would expose the executor to personal liability if the beneficiary were later found and claimed their entitlement.

The Trustee Act 1925 provides a solution: the executor can pay the missing share into court, after which they are discharged from any further responsibility for that money. The court holds the funds until the beneficiary (or their estate) claims them.

For a broader overview of what to do when a beneficiary cannot be found, including searching steps and alternative options, see our guide on what to do when a beneficiary cannot be found.

The Section 27 Protection: A Different But Related Tool

Before discussing section 63, it is worth noting section 27 of the Trustee Act 1925, which provides a different but related protection. Under section 27, an executor who:

1. Publishes a notice in the London Gazette (and local newspaper, for land) requiring creditors and claimants to come forward
2. Waits for two months from the date of the notice
3. Distributes the estate after the two months have expired

...is protected from liability to any person who had notice published and did not come forward. This is primarily a creditor protection, but it also covers unknown beneficiaries who had a reasonable opportunity to claim.

Section 27 reduces but does not eliminate the risk. Section 63 (paying into court) provides stronger protection for a specific known-but-missing beneficiary.

The Section 63 Procedure: Paying Into Court

The process for paying into court under section 63 of the Trustee Act 1925 involves the following steps:

Court fees and solicitor costs apply. For a modest missing share (under £10,000), total costs might be £2,000–£3,000. For larger shares, proportionally more.

What Happens to Funds Paid Into Court?

Funds paid into court are held by the Court Funds Office at modest interest rates (typically 0.1–1%). They are not invested in equities or property. Over time, inflation erodes their real value.

The missing beneficiary (or their estate, if they have died) can apply to the court at any time to claim the funds. If no one claims within a specified period (generally 12 years), the funds may be paid to the Crown as bona vacantia (ownerless property).

Alternative: Missing Beneficiary Indemnity Insurance

For many cases, missing beneficiary insurance is cheaper, faster, and more practical than paying into court. A specialist insurer provides a policy that indemnifies the executor and the other beneficiaries if the missing beneficiary later appears. Premiums typically range from 3–7% of the missing share.

The insurer will want to see evidence of the searches conducted before issuing a policy. The key advantage of insurance over the court procedure is speed — the estate can be distributed immediately after the policy is in place, without waiting for a court application.

Alternative: Benjamin Order

Where the missing beneficiary is believed to have died (but there is no death certificate), a Benjamin Order may be more appropriate than paying into court. A Benjamin Order is a court direction permitting distribution on the assumption that the beneficiary predeceased the testator. See our dedicated guide on Benjamin Orders.

Further Reading

• Estate administration checklist
• Complete UK probate guide
• Applying for probate
• Probate checklist
• Inheritance tax guide 2026–27
• DIY probate vs solicitor costs
• What documents do you need for probate?
• Probate delays and IHT interest

Farra can help you navigate complex estate administration challenges.