Need for notice in Gazette - executor is sole beneficiary

syl779

My relative died earlier in the year. I am executor and sole beneficiary.

My relative ran up large debts over a decade ago and they had to sell their house to pay these off. A few did come to light a couple of years later, but I believe that they have also been paid. They then rented until their money had all but gone and subsequently ended up on benefits prior to death. When they died they only had a small sum left which paid for the funeral and left only a few thousand pounds over (under £10k).

I am the executor and sole beneficiary of their will.

Is there any point placing a notice in the Gazette / local newspaper?

I understand that it protects the executor, but not any beneficiaries. What would happen if a creditor came forward in 12 months time? What if I paid them, then another creditor came forward 12 momnths later - but there was no money left? Would I be liable for the second debt as executor (or beneficiary) if I had not placed an advert in the Gazette?

Owain_Moneysaver

Yes, if you think that further creditors may appear.

You must also check with DWP about benefits payments. If there are still assets in the estate of £10k after funeral expenses this may mean there has been an overpayment of income-related benefits which must be repaid.

Keep_pedalling

The danger here is is multiple creditors come out of the woodwork. If you pay the first and there is not enough left to pay subsequent creditors as executor you could find yourself having to make up the shortfall.

kidmugsy

Look on the fee for the gazette as insurance against your inheritance ruining you. Good value insurance.

nom_de_plume

Keep_pedalling wrote: »

The danger here is is multiple creditors come out of the woodwork. If you pay the first and there is not enough left to pay subsequent creditors as executor you could find yourself having to make up the shortfall.

The trick here is to not pay anyone until such times as the notice period has expired.

In the meantime don't do anything with the remaining monies and hope that, if any creditors do surface, what money there is is sufficent to cover the debt.


Have a look through the appropriate section of the Gazette for wording and timescales - https://www.thegazette.co.uk/wills-and-probate


EG

Notice is hereby given pursuant to section 27 (Deceased Estates) of the Trustee Act 1925, that any person having a claim against or an interest in the estate of any of the deceased persons whose names and addresses are set out above is hereby required to send particulars in writing of his claim or interest to the person or persons whose names and addresses are set out above, and to send such particulars before the date specified in relation to that deceased person displayed above, after which date the personal representatives will distribute the estate among the persons entitled thereto having regard only to the claims and interests of which they have had notice and will not, as respects the property so distributed, be liable to any person of whose claim they shall not then have had notice.

konark

From what you have said I think most of the deceased's debts will be more than 6 years old and therefore have' timed out' or to give it its official title, be 'statute barred'.


In my opinion an advert in the Gazette is pointless, it may protect you as executor from creditors but not you as beneficiary, so if creditors do have a valid claim nothing in the Gazette will stop them chasing you for the money.


I wouldn't do anything until you've got the all-clear from the DWP, as the deceased did seem to have a lot of capital for someone on benefits, so there may be some overpayment to deal with.

syl779

Ironically there was hardly any money at all, not enough to have paid for the funeral, until a routine DWP audit late last year - when they discovered that they had been underpaying! My relative received their significant back payment only weeks before they found out that they were terminally ill; at that point they moved out of their rented property and into a (NHS funded) nursing home which was the end of any benefit payments.

Anyway, have now paid for the Gazette and will see if anything comes out of the woodwork. Might be a waste of money, but better to know I guess.

SevenOfNine

syl779 wrote: »

Anyway, have now paid for the Gazette and will see if anything comes out of the woodwork. Might be a waste of money, but better to know I guess.

The best decision, you should advertise in the paper local to the deceased as well, for good measure.

After the waiting period (think it's something weird like 2 1/2 months) you can then take out an insurance policy against creditors/beneficiaries crawling out of the woodwork. You cannot get the insurance if you didn't post in the Gazette.