HEEEEELP needed please - Probate problem

sherlock41

HEEEEEEEEELLPPPPPPP please I don't know how to get this to someone who can give me advise!! Virgin poster:eek:

Father-in-law died last year and probate was completed and applied for by ourselves as executors to the will privately. Company/Bank now 'realised' they have overpaid a policy surrender value to the deceased a month before his death(he knew he was dying, so was capitalising his assets) to the tune of £15,000 overpayment in error - they have now wrote a sorry sorry letter apologising for long delay from june 2009 until october 2010 to ask for money back - can they do this??????? - p.s. money was distributed via the will and grant of probate instructions in Dec 2009. Want to know if this is right, before I approach the beneficiaries for the £15,000 overpayment they say was made - more than one beneficiary!!!

jonesMUFCforever

This is not what you want to hear but yes they can ask for it back and you as executors will be held liable personally.

Hopefully most beneficiaries will see sense and refund you - it certainly will do no harm asking for a 'discount' from the insurance company.

chattychappy

jonesMUFCforever wrote: »

This is not what you want to hear but yes they can ask for it back and you as executors will be held liable personally.

Do you have an authority for this? I'm not sure that this is correct if they failed to prove the debt in a good time. I *think* once assets have been distributed they cannot be disturbed in circumstances such as this. It would (of course) be different if the executors made the distribution whilst aware of the potential claim.

Can't remember the law in this area and it's out of my usual area - I'll do some digging.

sherlock41

This is what we are thinking, surely there must be a time limit on these things, otherwise you could have anybody coming back at you, years down the line - it is over 16 months - the estate is now distributed??? I know for sure one of the beneficiaries has blown the inheritance, so won't get it back from there.

chattychappy

I've done some digging and it doesn't look so good. Unfortunately you may well be liable if you didn't issue notice to creditors/potential creditors (an advert in the London Gazette will usually suffice) that you intend to distribute the assets. As part of this notice, you can set a time limit and creditors must prove their debts. Once you have done this, then under s 27 of the Trustee Act 1925 you escape liability for unknown debts (but not those you knew about or ought to have known about). So there is a time limit, but you have to start the clock ticking.

I'm guessing you didn't go through this process.

I'm hoping that we have a professional who can advise further (with the usual disclaimers). I would add myself that banks are under a general duty to treat customers fairly. Given this situation has been brought about by bank error, I think there is an argument to be run here.

For the amount involved I suggest you seek proper legal advice - my analysis might be wrong.

But failing that or any contrary comment from anyone else, I would start by writing to the bank to the effect that that the assets of the estate have been distributed and are believed to have been dissipated. Therefore they are not available for return. Say that in these circumstances and those of their error and the lapse of time, it would be unfair and unreasonable for them to pursue this any further.

jonesMUFCforever

It does not look good for OP.

cos_2

Just a wee note that the Edinburgh Gazette is the equivalent for 'north of the border' same notifications.

chattychappy

cos wrote: »

Just a wee note that the Edinburgh Gazette is the equivalent for 'north of the border' same notifications.

If the OP is north of the border, I suppose the whole thing could be different..