Creditor Chasing Late Husbands Debt

[medsecslave]

My husband and I separated but never divorced. He passed away 2 years ago and I was left everything in his Will. His finances were complicated and to the best of my knowledge I had contacted his creditors and placed a notice in the London Gazette on my solicitor’s advice. That notice expired over a year ago and we’ve received notification from Resolve Call that they’ve called at his flat to discuss his debt. The flat is just about to be sold and my son is living there. Can anyone make a claim at this late stage? TIA

[woofgang]

looks like they afre well behind the beat https://www.thegazette.co.uk/wills-and-probate/place-a-deceased-estates-notice

[Barmaid]

Yes they can. The Trustee Act notices only protect an executor from being personally liable. They do not protect a beneficiary and the creditor can trace into the assets distributed to the beneficiary.

[medsecslave]

Barmaid thank you - what is your best advice - to contact my solicitor or contact them or ignore and go through with the sale and see what happens? Thank you

[medsecslave]

Also, I thought the notice in the London Gazette was to protect us from any further claims?

[bobbinwales]

its to protect the executor not the estate is what Barmaids saying a think

[bobbinwales]

Are you the executor medsecslave and whats the solicitors involvement ??

[Baldric]

Bob, I've got to ask, why do you always say 'A' when you mean 'I'?

[medsecslave]

Yes I was both executor and beneficiary?

[Barmaid]

If you were the exec and someone else was the beneficiary, these notices would protect you as the executor from being personally liable. However, the creditor could still go after the beneficiary. As you are both exec and beneficiary then the creditors can still come after you in the position of beneficiary.

If you have a solicitor, I suggest you contact them.

[medsecslave]

Barmaid thank you. I’ve just rechecked the will. I am both executor and trustee. I have a decree nisi - would that be taken into account? Thanks.

[Barmaid]

No, it wont - unless there is a contrary intention in the Will.

The creditor is due his money. Unless there are any limitation defences you might employ the money is due. I suggest you seek the advice of your solicitor.

[Bazile]

Barmaid
So a creditor could come to a beneficiary for a debt at anytime in the future, no.matter how many years has passed ?

[Peter Pedant]

many thanks for clear advice Barmaid

[jno]

Baz, I imagine the implication is that the deceased has left money that didn't belong to him as it was already owed to the creditor.

[Peter Pedant]

and medsec slave I am very sorry for the loss and angst this has caused

Bazeel - if you read - Barmaid did nt say that
she said the estate was still liable in this case

so, I think you should re read it

[Barmaid]

No, Bazile, normal limitation periods apply.

The point of Trustee Act notices is to protect the executor personally. So if an exec advertises and no one comes forwards within the time limit, he or she is able to distribute to the beneficiaries. After the expiry of the time limit a creditor may still claim his money but the executor has no personal liability for the debts - it is a complete defence to any claim against the executor (assuming he had no knowledge of the debt). If the executor does not place the adverts, the creditor should go after the executor personally - generally, the exec will then claim the money back from the beneficiary.

The adverts are all about protection for the executor. They do not have the effect of extinguishing the debt. However, if the creditor fails to do anything he may find himself met with a limitation defence. (Different limitation periods apply depending on the nature of the debt and once the period has expired the debt is statute barred. There are also equitable defences but I suspect a legal essay on these is not going to help the OP).

[Peter Pedant]

thx again Barmaid
I often wonder if any one reads or understands my posts
in your case I read understand and often look up the cases you cite

[brainiac]

PP - you often (rightly) praise the content and cogency of Barmaid's posts re legal matters. Does it not occur to you that you would be taken a lot more seriously here on AB if you tried to emulate her?

[Bazile]

Sorry for being a bit unclear here

I get the bit about protection for the executor

What I'm asking is if after the estate of the deceased has been distributed to the beneficiaries - can a creditor pursue the beneficiaries for a debt that was owed by the deceased ?

[Barmaid]

Yes Bazile they can. But there are defences available to the beneficiaries in the same way they were available to the deceased. So the normal limitation defences are available. Of course the beneficiary is only liable to the extent of the money he received.

The point is that the creditor is due his money before the beneficiary and it would be unjust to keep the creditor out of his money and give the beneficiary a windfall to the creditor's detriment.