Protecting oneself

Question 1

Who is liable

Answer 1

A PR can be held personally liable for failure to pay debts or pay legacies but can protect themselves

Question 2

Obtaining professional advice

Answer 2

If professional advice is sort and advice is follwed liabliy can be avoided

Question 3

Missing beneficiaries /Debtors

Answer 3

PR protect against unknown people by ensuring adverts and serches are done according to s27 Trustee act

Question 4

Unable to trace Known beneficiaries /Debtors

Answer 4

Can obtain a Benjamin order where the court can permit the estate to be administered as if the person has pre deceased

Question 5

Insurance Policys

Answer 5

Insurance can be taken out (premium paid from the estate) to protect against claims for missing beneficiaries likely to be the cheapest option

Question 6

Indemnity from beneficiaries

Answer 6

Can be done but difficult and costly to enforce

Question 7

Protection from claims under IFPD 1975

Answer 7

There is no protection of claims under this act however this ties in with payment not being made for 6 months as claims of this type are time limited to 6 months

Question 8

Not enough money to pay all debts

Answer 8

Insolvent estate - Debts to be paid in order no legacies or gifts to be paid

Question 9

Enough to pay debts but not enough to pay all gifts -

Answer 9

Insolvent estate - all gifts adeem (reduce in proportion ) and no No residue

Question 10

Enough to pay all debts and liablities

Answer 10

Solvent estate debts to be paid off in order then gifts and legacies in order and remainder to residue beneficiaries - Residual adeems first

Question 11

Limitation on claims

Answer 11

Limitation act 1980
Creditors -6 years
Beneficiaries - 12 years from end of PR year (6 if to include interest)
Claims under IPFD Act 6 Months