Protection of PRs

Question 1

how can PRs protect themselves against claims for unknown Bs/creditors?

Answer 1

publish a s.27 notice

NB: this only protects PRs against claims from unknown Bs/creditors. If the PRs know they exist but cannot find them, they will not be protected by a s.27 notice

Question 2

where should a s.27 notice be placed?

Answer 2

The notice should be placed in:
o The London Gazette
o If the estate includes land - a local newspaper
o Any other appropriate publication (can seek directions from the court)

Question 3

what information must be inc. in a s.27 notice?

Answer 3

The notice must require any person interested to send particulars of their claim within a specified time (no earlier than 2 months from the date of the notice)

Question 4

when can executors and administrators respectively publish the notice?

Answer 4

Executors can publish the notice from death + administrators from issue of GOR

Question 5

what searches should PRs undertake to identify Bs/creditors?

Answer 5

PRs should also undertake appropriate searches, i.e.:
o Local land charges search
o HMLR search
o Bankruptcy search

Question 6

how can PRs protect themselves from claims from missing Bs/creditors?

Answer 6

the only way PRs can administer the estate without repercussions if a missing B/creditor comes forward is by obtaining an Benjamin Order.

Alternative (less protective) measures inc.:
* Retain assets in case they return
* Administer the estate and obtain an indemnity from the other Bs that they will meet any future claims
* Insurance (expensive)

Question 7

how can PRs protect themselves from a family provision claim?

Answer 7

PRs should refrain from distributing the estate for 6 months after the GOR is issued

Question 8

what is a Benjamin Order? how is one obtained?

Answer 8

PRs must apply to the high court. The application must be supported by evidence that PRs have underaked full enquiries to locate the B/creditor

it is a declaration that B/creditor is presumed dead

Question 9

what happens if PRs distribute the estate within 6 months of the issue of GOR and the claim is successful?

Answer 9

the PRs will be personally liable to pay if there are insufficient assets in the estate.

So long as PRs have waited 6 months from the issue of GOR to distribute the state, either the estate will pay or C recovers property from Bs