Debt claim after grant of probate

SaintAlf

Acting as executor, the death was more than a year ago and the grant of probate was more than 6 months ago.  An invoice has now been received from an individual who claims to have provided a service that was not paid for.  This contradicts a statement from that individual by email that the services in question were provided free of charge.  They are threatening legal action.  Any thoughts on what we should do, if anything?  Thanks in advance.

Grumpelstiltskin

What should you do? Nothing, call their bluff.

Keep_pedalling

I would not ignore it. Reply to them in writing, that based on their email that the alleged services were provided free of charge you have distributed the estate and that you do not acknowledge the debt and that you will defend any legal action taken.

The fact that you have written proof that they provided the service FOC means they are going to fail with any action taken in the small claims court.

Was this individual acting in a professional capacity? 

SaintAlf

Keep_pedalling said:

I would not ignore it. Reply to them in writing, that based on their email that the alleged services were provided free of charge you have distributed the estate and that you do not acknowledge the debt and that you will defend any legal action taken.

The fact that you have written proof that they provided the service FOC means they are going to fail with any action taken in the small claims court.

Was this individual acting in a professional capacity? 

Thanks - after the invoice was received they were informed in writing that it contradicts the email confirmation that the services were FOC and as such the debt is not valid.  This resulted in the legal threat.  They were acting in a personal capacity, not as part of a business, although they have referred to fees they would normally charge for the service.

SaintAlf

Grumpelstiltskin said:

What should you do? Nothing, call their bluff.

Thanks - is there any downside to that, if they do decide to go ahead?

Keep_pedalling

SaintAlf said:

Grumpelstiltskin said:

What should you do? Nothing, call their bluff.

Thanks - is there any downside to that, if they do decide to go ahead?

If this does end up in the small claims court then it would be better to show that you have responded to what is basically a letter before action. I would reply to this in the first instance but ignore any follow up unless it comes from the court. Make sure you keep hard copies of the original email.

They have almost 0% chance of bringing a successful claim and I doubt they will try but it is better to be safe than sorry.

Grumpelstiltskin

If they do take the estate to court then you have evidence of what has transpired so it would be up to the court to decide , but would they actually do it?

If they are serious they must provide you with a letter before action.

SaintAlf

Grumpelstiltskin said:

If they do take the estate to court then you have evidence of what has transpired so it would be up to the court to decide , but would they actually do it?

If they are serious they must provide you with a letter before action.

Thanks - pretty sure what we have now is a letter before action, it also mentions mediation.  Despite the evidence they may go ahead.

naedanger

SaintAlf said:

Acting as executor, the death was more than a year ago and the grant of probate was more than 6 months ago.  An invoice has now been received from an individual who claims to have provided a service that was not paid for.  This contradicts a statement from that individual by email that the services in question were provided free of charge.  They are threatening legal action.  Any thoughts on what we should do, if anything?  Thanks in advance.

I would, as others have suggested write to them and deny liability for the reason you have already given them. (If the matter goes to court you want the paperwork to show you have behaved reasonably.)

However if you are not the sole beneficiary then I would add a further sentence saying that even if the debt was valid, which you strongly deny, you would not be liable for it because you administered your executor duties properly. They were aware of the death but failed to register a claim with you, as executor, before probate and well after two months of being aware of the deceased's death. On that basis you did nothing wrong in distributing the estate when you did and based on the value you had for it at that time.

(Of course if, which seems unlikely, the debt is held to be valid and you aren't liable as executor then they could still pursue the residual beneficiaries for their share of the debt.)

SaintAlf

Thanks everyone for the good advice.  Is there a time limit for this kind of thing?  It's now almost a year since probate was granted.

Keep_pedalling

SaintAlf said:

Thanks everyone for the good advice.  Is there a time limit for this kind of thing?  It's now almost a year since probate was granted.

There is a 6 year period before debts become timebarred.