Statutory Notices
Don’t risk becoming liable for your loved one’s debts
How a simple advert can protect you
If you are made executor of a Will, you could become personally liable for the debts that friend or loved one had at the time of their death.
This is also true for someone made the administrator of an estate without a will.
This may seem wholly unfair and quite frightening, but there is one simple thing you can do to make sure it doesn’t happen.
Personal Representative liability
As the executor you become the official Personal Representative who distributes their assets according to the Will.
If there are any debts outstanding these would always be paid first, before any inheritance is handed out.
But what if there are debts which no one knew about? And you don’t find out about them until after the assets have been shared out? That’s when the Personal Representative risks having to pay those debts from their own pocket.What can I do to avoid it?
A Personal Representative can protect themself from such liability by placing the appropriate statutory advertisement, as referred to within the Trustees Act 1925. Such advertisement would be placed in The Gazette, the national legal notice broadsheet, and a local newspaper.
By placing these advertisements, the Personal Representative gives notice of the intention to distribute the assets of the estate and asks that any other interested parties get in touch immediately with the particulars of their claim as a creditor.
Phew! But what should my Statutory Advertisement include?
The advertisement will state that notice of any such claims must be given within a two-month period. It will say that once that time limit has expired, the estate will be distributed having regard only to the claims of which you have notice. If a claim is made subsequently by someone of whom you had no notice, you are not personally liable.
What if I don’t want to post a Statutory Advertisement?
There is a cost implication to the advertisement and some people are happy to go ahead without one.
This is not advised but could be the choice if you are certain that no potential creditors exist.
By placing the advertisements, however, you are demonstrating due diligence in dealing with the estate and can ensure complete peace of mind with regards any future claims.
For support in drafting and placing the Statutory Advertisement contact Patricia Prescott, senior Private Client in Vincents Lytham office.
Call 01772 348922 or email PatriciaPrescott@vslaw.co.uk
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