Due to inherit a business, am I liable for it's bills before I become legal owner?

Filan · 18-08-2009, 14:54

I'd be grateful for any assistance. Also does anyone know anything about equity release, possibly to pay inheritance tax?.
Thanks
A

conolan · 19-08-2009, 12:38

Probably if it's a limited company. If sole trader, the executor will have to pay the debts from the cash (if any). Not sure what happens if there's no cash.
By equity release I presume you mean selling part of the business? You can once you own it, but then you have a partner. Is there property as part of the business? You might be able to raise a loan on it assuming business is profitable.
Good luck.

Lplated · 19-08-2009, 12:55

No.

When someone dies (testator), their property 'vests' in their executors. They administer the estate, the final act of which is handing over, in the legal sense, the property to the beneficiary (you).

Until such time as you have 'taken', you have no liability in respect of the estate. The bills are the liability of the business, and whoever its legal owner is at any given point.

18-08-2009, 14:54	#1
Filan Registered User Join Date: Aug 2006 Location: Limerick Posts: 695 Adverts \| Friends	Due to inherit a business, am I liable for it's bills before I become legal owner? I'd be grateful for any assistance. Also does anyone know anything about equity release, possibly to pay inheritance tax?. Thanks A

19-08-2009, 12:38	#2
conolan Registered User Join Date: Nov 2007 Location: Dunmore East Posts: 334 Adverts \| Friends	Probably if it's a limited company. If sole trader, the executor will have to pay the debts from the cash (if any). Not sure what happens if there's no cash. By equity release I presume you mean selling part of the business? You can once you own it, but then you have a partner. Is there property as part of the business? You might be able to raise a loan on it assuming business is profitable. Good luck. __________________ Datapartners - Online Backup - Webwizards - Web Design Waterford

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19-08-2009, 12:55	#3
Lplated Registered User Join Date: Apr 2006 Posts: 283 Adverts \| Friends	No. When someone dies (testator), their property 'vests' in their executors. They administer the estate, the final act of which is handing over, in the legal sense, the property to the beneficiary (you). Until such time as you have 'taken', you have no liability in respect of the estate. The bills are the liability of the business, and whoever its legal owner is at any given point.