Protection of PRs

Question 1

Liability to Beneficiaries and Creditors

Answer 1

PRs are personally liable for unpaid claims from beneficiaries or creditors, even if unknown when a distribution is made, unless they comply with s27 of the Trustee Act 1925.

Question 2

Advertise for Claims

Answer 2

PRs can protect themselves from unknown claims by placing advertisements in the London Gazette, a local newspaper where any estate land is located, and any other appropriate newspaper. This notice requests interested parties to contact the PRs’ solicitor within a minimum of two months.

Question 3

Options if Beneficiary or Creditor Cannot Be Found

Answer 3

PRs have several options to protect against personal liability:

Question 4

Options if Beneficiary or Creditor Cannot Be Found

Answer 4

1. Pay the owed amount into court and distribute the rest of the estate.

Question 5

Options if Beneficiary or Creditor Cannot Be Found

Answer 5

2. Distribute the estate with an indemnity from beneficiaries.

Question 6

Options if Beneficiary or Creditor Cannot Be Found

Answer 6

3. Seek a Benjamin Order, which allows distribution based on assumptions set in the order.

Question 7

Options if Beneficiary or Creditor Cannot Be Found

Answer 7

4. Purchase insurance against the risk of a missing claimant.

Question 8

Protection Against Inheritance Act 1975 Claims

Answer 8

PRs concerned about potential claims under the Inheritance Act 1975 should wait 6 months from the date of the grant, as claims cannot be made after this period.