Protection of PRs Flashcards
(9 cards)
how can PRs protect themselves against claims for unknown Bs/creditors?
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
where should a s.27 notice be placed?
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)
what information must be inc. in a s.27 notice?
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)
when can executors and administrators respectively publish the notice?
Executors can publish the notice from death + administrators from issue of GOR
what searches should PRs undertake to identify Bs/creditors?
PRs should also undertake appropriate searches, i.e.:
o Local land charges search
o HMLR search
o Bankruptcy search
how can PRs protect themselves from claims from missing Bs/creditors?
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)
how can PRs protect themselves from a family provision claim?
PRs should refrain from distributing the estate for 6 months after the GOR is issued
what is a Benjamin Order? how is one obtained?
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
what happens if PRs distribute the estate within 6 months of the issue of GOR and the claim is successful?
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