Statutory Notices needed or not?
Snuggles
Posts: 1,001 Forumite
I am sole executor for an estate and have completed the probate application myself, as it's a fairly straightforward estate and uncomplicated will.
Apart from one small legacy, the proceeds of the estate are to be shared equally between four beneficiaries, one of whom is myself.
I have read that if an executor is also the beneficiary, there is no point in placing a statutory notice, since the notice only protects the executor and not the beneficiaries (ie the executor would still be potentially liable as a beneficiary).
However, given that there are four beneficiaries, am I right in thinking that if I place statutory notices, this would reduce my potential liability for any future claim from 100% (as executor) to 25% (as one of four beneficiaries)?
Apart from one small legacy, the proceeds of the estate are to be shared equally between four beneficiaries, one of whom is myself.
I have read that if an executor is also the beneficiary, there is no point in placing a statutory notice, since the notice only protects the executor and not the beneficiaries (ie the executor would still be potentially liable as a beneficiary).
However, given that there are four beneficiaries, am I right in thinking that if I place statutory notices, this would reduce my potential liability for any future claim from 100% (as executor) to 25% (as one of four beneficiaries)?
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Comments
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The statutory notice prevents any claims against the estate after the minimum of sixty days notice. I have seen various suggestions that the executor has lifelong liability if the notice is not published. However this would seem to override the normal time of debts being limted to six years. I would be interested to hear if someone can quote legislation that supports the concept of life long liability. Likewise what is the legislation that makes a beneficiary liable once the statutory notice has expired. If there can be no claim against the estate then the beneficiaries must be surely be protected as well. If there really is this long term liability it would give rise to masses of long drawn out litigation.I am sole executor for an estate and have completed the probate application myself, as it's a fairly straightforward estate and uncomplicated will.
Apart from one small legacy, the proceeds of the estate are to be shared equally between four beneficiaries, one of whom is myself.
I have read that if an executor is also the beneficiary, there is no point in placing a statutory notice, since the notice only protects the executor and not the beneficiaries (ie the executor would still be potentially liable as a beneficiary).
However, given that there are four beneficiaries, am I right in thinking that if I place statutory notices, this would reduce my potential liability for any future claim from 100% (as executor) to 25% (as one of four beneficiaries)?0 -
The statutory notice prevents any claims against the estate after the minimum of sixty days notice. I have seen various suggestions that the executor has lifelong liability if the notice is not published. However this would seem to override the normal time of debts being limted to six years. I would be interested to hear if someone can quote legislation that supports the concept of life long liability. Likewise what is the legislation that makes a beneficiary liable once the statutory notice has expired. If there can be no claim against the estate then the beneficiaries must be surely be protected as well. If there really is this long term liability it would give rise to masses of long drawn out litigation.
Thanks for the reply, but I don't think that's quite right. As I understand it, the statutory notice does not prevent claims against the estate, it merely protects the executor from personal liability in relation to any claims. Creditors can still pursue beneficiaries for debts of the deceased, even if statutory notices have been published. I believe that if notices are not published, the executor is liable for a period of 12 years, not for life.0 -
Noted. I just can't see how that would work. The difficulties of successfully taking action against beneficiaries after 12 years would be huge. Even after the normal 6 years would not be easy. Think of the practical consequences if beneficiaries were liable. It would result in chaos. Also remember that the beneficiaries, unless the are also the executor, would if they were prudent, not dispose of any of their legacies for 12 years. I just doubt this is case but if someone can cite the legislation that says otherwise please do.Thanks for the reply, but I don't think that's quite right. As I understand it, the statutory notice does not prevent claims against the estate, it merely protects the executor from personal liability in relation to any claims. Creditors can still pursue beneficiaries for debts of the deceased, even if statutory notices have been published. I believe that if notices are not published, the executor is liable for a period of 12 years, not for life.0 -
The stat notices protect the executor from any debt that may be held against the estate and that is not known through normal investigations. If no one comes forward at this stage it is unlikely that they would at a later date. Debts can be pursued after the 6 years (or 12 years for a mortgage) and the time starts after the last payment was made so long as within that 6 year period you dont admit the debt. Yes its complicated because if a CCJ is made during that 6 year period as well the debt doesnt become statute barred http://moneyaware.co.uk/2013/10/statute-barred-debt/ so in reality yes a debt could be chased 30 years after death if it fulfills the requirements not to be statute barred
Rob0
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