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Executor liability

  • 28-09-2015 7:05pm
    #1
    Little CuChulainn
    Closed Accounts Posts: 7,624 ✭✭✭


    If an executor of a will does not settle outstanding debts before dividing up the estate can they be held liable for the unsettled debts?


Comments

  • #2
    coylemj
    Registered Users, Registered Users 2 Posts: 25,622 ✭✭✭✭coylemj


    Little CuChulainn wrote: »
    If an executor of a will does not settle outstanding debts before dividing up the estate can they be held liable for the unsettled debts?

    If in doubt, the executor should stick the standard notice in the papers calling for creditors to come forward with their claims....

    49.—(1) Where the personal representatives have given such notices to creditors and others to send in their claims against the estate of the deceased as, in the opinion of the court in which the personal representatives are sought to be charged, would have been given by the court in an administration suit, the personal representatives shall, at the expiration of the time named in the said notices, or the last of them, for sending in such claims, be at liberty to distribute the assets of the deceased, or any part thereof, amongst the parties entitled thereto, having regard to the claims of which the personal representatives have then notice.


    This gets the executor off the hook in terms of personal liability....

    (2) The personal representatives shall not be liable to any person for the assets or any part thereof so distributed unless at the time of such distribution they had notice of that person's claim.


    But if a genuine debt springs from the woodwork after probate is granted and the assets distributed, the creditor(s) can still claim for payment but they have to chase the assets rather than the executor....

    (3) Nothing in this section shall prejudice the right of any creditor or claimant to follow any such assets into the hands of any person who may have received them.

    http://www.irishstatutebook.ie/eli/1965/act/27/section/49/enacted/en/html#sec49

    If the executor was aware of the debt and distributed the assets regardless then yes, he can be held liable because he would then fail the test in subsection 2 above and lose that protection.


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