Deceased died intestate. No assets in her estate required a Grant to administer. It has been ascertained that she was a beneficiary under the Will of friend who died before her. A family tree has been obtained via Estate Research. Is it generally recommended that in such circumstances a Grant of Letters of Administration is obtained before funds can be paid out to those entitled to administer and distribute in accordance with the rules of intestacy or would/ should a form of receipt/ indemnity be sufficient to allow those persons entitled to take receipt?
I don’t think there is any formal guideline anywhere. It’s entirely up to the PR’s of the other estate. If they are comfortable taking the risk, (possibly with an indemnity) then they have the ability to pay out.
Whether the risk is acceptable will depend on all the circumstances including value and the PR’s knowledge of the claimant’s family and the likelihood of a will or other claimants appearing. There will be straightforward cases, others which are much messier and many in between. Obviously any adviser should advise the PRs that they are entitled to insist on a grant which would avoid any risk.
The statement “No assets in her estate required a Grant to administer” is delightfully ambiguous, mindful that some institutions seem happy to release perhaps £100,000 without a grant.
My view is that a grant should generally be obtained, as explained in my article published by Gill Steel (Lawskills Limited): Probate, or any other grant – Why Bother? - Lawskills
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
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