Chapter 13: Protection of Personal Representatives

Question 1

Will PRs be personally liable for any unpaid beneficiary or creditor even if their identity is not known at the time of distribution?

Answer 1

Yes, unless the undertake the following steps:

1. Place advert in London Gazette
2. Place advert in local newspaper
3. Place advert in any other appropriate newspaper

PRs must request any interested person contacts the PR within 2 months

Question 2

If a PR cannot find a known beneficiary or creditor, what can they do to protect themselves against liability?

Answer 2

1. Make the payment to the Court and distribute the remaining estate
2. Distribute everything but obtain indemnity from beneficiaries
3. Obtain Benjamin Order (Court order giving PRs leave to distribute the estate)
4. Purchase insurance

Question 3

Can a person apply to the Court to set aside the terms of a will or intestacy?

Answer 3

Yes, on the grounds that reasonable financial provision has not been made for them

Question 4

How long should PRs wait to distribute the estate from the issue of the grant?

Answer 4

Six months

Question 5

What situations would future and contingent liabilities include?

Answer 5

The deceased acted as guarantor on a loan or there is a possibility of legal proceedings against the estate

Question 6

What can PRs do to protect themselves from future and contingent liabilities?

Answer 6

1. Estimate and set aside an appropriate amount
2. Seek indemnity from beneficiaries
3. Arrange insurance and distribute the entire estate
4. Apply to the Court for directions as to what to do

Question 7

Can PRs be liable for potentially exempt transfers or chargeable lifetime transfers by the deceased?

Answer 7

• Yes, if the inheritance tax due is still unpaid after 12 months
• HMRC will not pursue PRs if they have made the fullest enquiries and obtained a certificate of discharge