Protection of PRs

Question 1

What is the impact of a PR not complying with s27 Trustee Act 1925 (which states PRs should send out adverts fao unknown creditors)?

Answer 1

They become personally liable to any unpaid beneficiary or creditor

Question 2

PRs can protect themselves against unknown claims from liability by filing adverts in which three locations?

Answer 2

1. London Gazette
2. Local newspaper
3. Any other appropriate newspaper

Question 3

How long after placing an advert should a PR request that a person contacts them?

Answer 3

minimum 2 months

Question 4

Describe 4 options that a PR has if they cannot find a known beneficiary/creditor, in order to protect themselves against personal liability?

Answer 4

1. Pay into court and distribute rest of estate
2. Distribute everything + Indemnity from the beneficiares
3. Benjamin order
4. Insurance

Question 5

What is a Benjamin order?

Answer 5

A court order giving PRs leave to distribute the estate based on an assumption set out in the order (e.g. that the beneficiary cannot be found because they died before the deceased)

Question 6

Can Benjamin orders provide full protection from a claim from unknown beneficiaries?

Answer 6

No - known beneficiaries only

Question 7

How long should a PR wait from the date of grant if they’re worried about a possible claim against the estate under the 1975 Act (which may include a known beneficiary)?

Answer 7

6 months