Payment to Intestate Estate (with debts) Without Grant

Apologies if the answer is obvious. I may be ‘overthinking’ the issue.

Widow died leaving will appointing one of several adult children as executor. Executor took probate but died intestate before estate could be ascertained; primarily a property sale.

Residual beneficiaries of the Widow are the deceased executor and siblings in equal shares.

Another sibling subsequently was Administrator of the unadministered estate (with will annexed).

Distribution etc. for the most part straightforward however we have been told the executor who died left significant personal debts. One of his two adult children have asked for the deceased’s entitlement which we now hold to be paid directly to them, stating they will deal with debts etc. and administer the estate.

We would normally advise our client, to require one or both of the children should obtain Letters of Administration or at least some form of release lest the debts are not settled.

Thoughts?

John Cartlidge
Campion Solicitors

Who is your client? The Administrator of the widow?

I would be wary of paying monies to those who have no right to them if there are creditors lurking.

Andrew Goodman
Osborne Clarke

Correct; our client is the administrator of the widow’s estate.

The deceased executor was single with two adult children and it is they who want their late father’s entitlement from the Widow’s estate paid to them without a grant.

We would need the widow’s approval to do so but we are reluctant to seek this approval without with either/both of the adult children of the intestate taking a grant.

John Cartlidge
Campion Solicitors

By paying, your client would be at risk because the payment may not cancel the debt to the child’ estate. If an administrator was appointed to the child’s estate, particularly if they were appointed by the creditors, they would have a right to pursue your client for the monies already paid away.

Your firm might also be at risk, as interim holders of the money, although I don’t know how substantial that risk is if you only pay it away on your client’s instructions. I would have thought the risk was very real if you had any knowledge that the children were intending to defraud the creditors.

Andrew Goodman
Osborne Clarke LLP