Liability of PRs & Protection

Question 2

What type of liability do PRs have?

Answer 2

Personal

Question 3

A PR can protect against a claim by an UNKNOWN Beneficiary / Creditor under s27 TA 1925.

(1) What must they publish?
(2) In what 2 places?
(3) What must also be done alongside this?
(4) How long must they wait after doing this before administering the estate?

Answer 3

(1) ‘NOTICE’
(2)
(a) London Gazette AND
(b) Newspaper local to D
(3) PR’s carry out OWN SEARCHES (e.g. Land Registry)
(3) Wait MIN 2 months

Question 4

A PR can protect against a claim by an UNKNOWN Beneficiary / Creditor under s27 TA 1925.

If this has been successfully followed can a claim be brought against:
(1) PR?
(2) Other Beneficiaries?

Answer 4

(1) NO
(2) YES

Question 5

A PR can protect against a claim by a KNOWN Beneficiary / Creditor WHO CANNOT be LOCATED.

(1) What 5 methods?
(2) What is the ONLY method that provides full protection to the PR?

Answer 5

(1)
(a) Apply for BENJAMIN ORDER
(b) INDEMNITY from B’s
(c) INSURANCE
(d) Retain % ASSETS
(e) ‘NOTICE’ + wait 2 months

(2) ‘Benjamin Order’

Question 6

A ‘Benjamin Order’ is the only way a PR can have full protection from a KNOWN Beneficiary / Creditor WHO CANNOT be LOCATED.

(1) How will this Order treat a Beneficiary who CANNOT be located?
(2) What CONDITION will the court grant one on?

Answer 6

(1) B/C = DEAD
(2) FULLEST POSSIBLE enquiries to Trace the B/C

Question 7

If the court grants a ‘Benjamin Order’ can the Beneficiary / Creditor who CANNOT be LOCATED make a claim against:
(a) PR
(b) Other Beneficiaries

Answer 7

(a) NO
(b) YES

Question 8

How should a PR protect themselves against a Claim under IPFD 1975?

Answer 8

Wait > 6 months from DATE OF GRANT OF REPRESENTATION before Administering Estate

IF NOT POSSIBLE - keep % Assets to satisfy potential claim