The process of administering a person’s estate after death can be complex, but where an estate is insolvent the process can be further complicated. If an estate is insolvent it means that its liabilities exceed the value of its assets. Knowing the procedures and what could be involved is important; particularly because of the personal liability imposed on Executors or Personal Representatives if mistakes are made. You should always seek expert advice and our team of specialist probate solicitors can offer practical guidance where necessary.
The Law Society has recently published new best practice guidance in an effort to provide better clarity on some of the issues which need to be managed. This includes dealing with issues such as; who can administer an insolvent estate, the payment of liabilities (including unpredicted or unforeseen liabilities) and personal liability implications. Important points to note are the importance of retaining documents, considering priority debts and considering allowing creditors to take the Grant and the Personal Representatives renouncing, if this is appropriate.
If you require any further assistance in respect of any probate matter, then you should contact a member of our probate team who will be more than happy to assist and guide you through the process.