Discharging estate liability can be a complex and challenging task. In the light of a recent decision, Jennifer Haywood outlines a court’s approach to ascertaining liabilities
In brief
- Section 27 of the Trustee Act 1925 exempts personal representatives from liability for claims of which they do not have notice within two months of a suitable advertisement.
- However, a personal representative may be regarded as being on notice of a class of claims, even if no one comes forward.
- Re the Estate of Michael Studdert [2020] EWHC 1869 (Ch): a recent example of a personal representative being on notice, where there is reason to believe that the deceased has committed sexual assaults.
Being a personal representative can seem an invidious task. Claims against a deceased person endure against his estate (save for defamation), and a personal representative is obliged to ascertain the estate’s liabilities and arrangement for their payment in priority to any distribution to the beneficiaries. If a personal representative fails to discharge any estate liability, he may be personally liable.
A personal representative cannot, of course, hold onto the assets
