Heir Hunters

[Matty]

So my folks have been contacted by a company who randomly knocked on the door. They're from a company called Fraser and Fraser, as a relative has passed away who had no direct family, so they're one of a total of 3 who are next in line. They have spoken to a coroner, and confirmed this is legitimate.

Was given a big 'sales' pitch about how they'll handle everything for "only 3%"...my folks are pretty keen to just hand this off as they don't want the hassle (deceased lived in Wales, so not local). They were then contacted by another company who claimed they'd do it all for 10%.....as of yet, they've not signed or agreed to anything.

Appreciate this is vague - but does anyone have any experience of this kind of thing? They don't know what to do, they just want it dealt with, but I'm concerned about what they're actually signing and/or agreeing to as it feels very predatory (especially turning up at the door unannounced!)

[Zonda_]

No experience but if these companies are fighting over it already I’m guessing it’s a substantial amount. There must be some solicitor handling the estate, surely they can contact them for free?

[jamcg]

Watched the odd episode following a company on daytime tv and that’s my whole knowledge on the subject The fees are just to cover their costs of researching family trees and tracking people down, quite a difference in their amounts, you’d have to read contracts to see exactly what you’d be paying, but the turning up out of the blue is exactly what these places do

[Jobbo]

I’m not sure you have anything to lose - just so long as you don’t give them money and they take their fee from the estate, there’s no obvious scam they could pull doing this anyway. Fraser & Fraser are a real business doing exactly this.

3% sounds quite low as well; assuming there are a few potential beneficiaries I’d let them do it for that. The 3% of the estate which they take won’t really be noticeable shared between a few people and they’ve done some work already - you wouldn’t be aware of this without them. Yes, it’s possible to cut them out but do you even know the name of the deceased?

[Sundayjumper]

Yes, it’s possible to cut them out but do you even know the name of the deceased?

He said they’ve spoken to the coroner, so I assume so.

Agreed 3% sounds cheap, but check the small print for “expenses”.

[JonMad]

> so they're one of a total of 3 who are next in line. They have spoken to a coroner, and confirmed this is legitimate.

Would Fraser and Fraser (or whoever) be hunting for other related family members, if this number is known?
What's the service they'll provide - making sure you get your fair share?
Is the 3% paid by you only or split across the 3 who are in line? Or does everyone pay 'only 3%' and they therefore take 9% of the estate?

I'm not versed at all in these matters, as you can tell, so happy to be educated, 'death 101' if you like.

[mik]

3% looks like a low figure on paper, but I assume that's calculated on the value of the estate before any inheritance taxes are removed

If yes, and the estate is worth just £330k they take £10k A £660k estate earns them £20k etc etc. Which suddenly seems rather more significant. I wasn't aware such companies even existed, and therefore have absolutely no idea whether the body of work they would do / have already done justifies such a chunky payment (?).

[Gavster]

3% looks like a low figure on paper, but I assume that's calculated on the value of the estate before any inheritance taxes are removed

If yes, and the estate is worth just £330k they take £10k A £660k estate earns them £20k etc etc. Which suddenly seems rather more significant. I wasn't aware such companies even existed, and therefore have absolutely no idea whether the body of work they would do / have already done justifies such a chunky payment (?).

If someone turned up on my doorstep unannounced and proved that I was entitled to £110k, which I had zero priror knowledge about, but it would be £106,666 after their fees, I'd shake their hand, offer them a drink and tell them they should charge more

[Sundayjumper]

You could use the money to buy a new calculator !!

[mik]

If someone turned up on my doorstep unannounced and proved that I was entitled to £110k, which I had zero priror knowledge about, but it would be £106,666 after their fees, I'd shake their hand, offer them a drink and tell them they should charge more

Yeah I know.

But I suspect the above example would be more like - total estate was £1.1M, of which you were entitled to £110k.
After inheritence tax yada yada the £1.1M became £790k, so your share became £79k.
After our 3% fee (on the £110k) you get £75.7k.

So the "effective fee" is more like 4% in the above example (if that is indeed how they calculate their fee? ).

But yeah - you still get £75k you weren't expecting

[Matty]

@Gavster That's what someone else said. They weren't expecting anything, so even 60% of 300k (or whatever the final total is) is better than 100% of nothing

It's more that I'm concerned about what my parents will ending up signing for - not only from a financial perspective, more in terms of responsibility. I already have to take them to Wales to empty the house and check through belongings. Like Mik, I had no idea these people were even a thing, but guess it makes sense.

I’m not sure you have anything to lose - just so long as you don’t give them money and they take their fee from the estate, there’s no obvious scam they could pull doing this anyway. Fraser & Fraser are a real business doing exactly this.

3% sounds quite low as well; assuming there are a few potential beneficiaries I’d let them do it for that. The 3% of the estate which they take won’t really be noticeable shared between a few people and they’ve done some work already - you wouldn’t be aware of this without them. Yes, it’s possible to cut them out but do you even know the name of the deceased?

They knew him - funnily enough they only contacted him a few months back to have a catchup as he was due money from another family members estate, and he refused it, as in his words, "I'm old and I've already got enough" and told my folks to give it to their kids or grandkids. Apparently my parents also think I have enough and put it in my nephews trust

There are in fact about 10 total beneficiaries, but only 3 they can get in touch with, and only my parents seemingly care enough to do anything about it - although I can guarantee all 10 will be out of the woodwork as soon as they know there is money on the table

[Matty]

But I suspect the above example would be more like - total estate was £1.1M, of which you were entitled to £110k.
After inheritence tax yada yada the £1.1M became £790k, so your share became £79k.
After our 3% fee (on the £110k) you get £75.7k.

Mik, I don't know what vibe my forum persona gives off, but if I've given the impression I roll in those kind of circles, I need to start leaning into my Black Country roots a bit more

[mik]

Mik, I don't know what vibe my forum persona gives off, but if I've given the impression I roll in those kind of circles, I need to start leaning into my Black Country roots a bit more

Yeah, sorry. I'm just throwing around numbers that included a more chunky Inheritance Tax impact.

[Jobbo]

I’m not sure you have anything to lose - just so long as you don’t give them money and they take their fee from the estate, there’s no obvious scam they could pull doing this anyway. Fraser & Fraser are a real business doing exactly this.

3% sounds quite low as well; assuming there are a few potential beneficiaries I’d let them do it for that. The 3% of the estate which they take won’t really be noticeable shared between a few people and they’ve done some work already - you wouldn’t be aware of this without them. Yes, it’s possible to cut them out but do you even know the name of the deceased?

They knew him - funnily enough they only contacted him a few months back to have a catchup as he was due money from another family members estate, and he refused it, as in his words, "I'm old and I've already got enough" and told my folks to give it to their kids or grandkids. Apparently my parents also think I have enough and put it in my nephews trust

There are in fact about 10 total beneficiaries, but only 3 they can get in touch with, and only my parents seemingly care enough to do anything about it - although I can guarantee all 10 will be out of the woodwork as soon as they know there is money on the table

That's slightly bizarre then - heir hunter companies generally pick up on estates advertised in the London Gazette without a will or known beneficiaries. So if the deceased has only just died it's quite early for them to be contacting you.

No need to pay them even 3% if the estate is being administered already; just make yourselves known to the executors.

[V8Granite]

Mik, I don't know what vibe my forum persona gives off, but if I've given the impression I roll in those kind of circles, I need to start leaning into my Black Country roots a bit more

Yeah, sorry. I'm just throwing around numbers that included a more chunky Inheritance Tax impact.

Sorry, I hear Keir Starmer just read this and became fully erect.

Dave!

[Matty]

I’m not sure you have anything to lose - just so long as you don’t give them money and they take their fee from the estate, there’s no obvious scam they could pull doing this anyway. Fraser & Fraser are a real business doing exactly this.

3% sounds quite low as well; assuming there are a few potential beneficiaries I’d let them do it for that. The 3% of the estate which they take won’t really be noticeable shared between a few people and they’ve done some work already - you wouldn’t be aware of this without them. Yes, it’s possible to cut them out but do you even know the name of the deceased?

They knew him - funnily enough they only contacted him a few months back to have a catchup as he was due money from another family members estate, and he refused it, as in his words, "I'm old and I've already got enough" and told my folks to give it to their kids or grandkids. Apparently my parents also think I have enough and put it in my nephews trust

There are in fact about 10 total beneficiaries, but only 3 they can get in touch with, and only my parents seemingly care enough to do anything about it - although I can guarantee all 10 will be out of the woodwork as soon as they know there is money on the table

That's slightly bizarre then - heir hunter companies generally pick up on estates advertised in the London Gazette without a will or known beneficiaries. So if the deceased has only just died it's quite early for them to be contacting you.

No need to pay them even 3% if the estate is being administered already; just make yourselves known to the executors.

Sorry, further clarification - it was advertised in a newspaper as they have no record of a will with no direct family. Initial enquiries from F&F identified the next 10 in line, but only 3 are contactable (one being my parents).

[dinny_g]

I guess this is their business model - people who die intestate, they track down living relatives and take a portion of the estate

So long as it's strictly 3% of each beneficiaries payment (Not 3% of the total) and the contracts are OK, seems like a no brainer

[Jobbo]

So long as it's strictly 3% of each beneficiaries payment (Not 3% of the total)

How does that differ? If they take 3% from each beneficiary they get 3% of the total.

[dinny_g]

Sorry, I meant to say, "Not 3% of the total EACH" -

Simple view

£1,000,000 split between 10 people
Each gets £100,000
Each Pays £3,000
Each Pockets £97,000

Not

£1,000,000 split between 10 people
3% is £30,000
Each gets £100,000
Each pay £30,000
Each Pockets £70,000

[Sundayjumper]

It's well dodgy maths, but it would explain the difference here between 3% from F&F, and the 10% the other guys quoted.

3% of total estate collected from each of the three beneficiaries is ~equal to 10% of each individually and makes them sounds like they're miles cheaper when they're not really.

As before - read the small print.