After a person dies they leave an estate behind them. This is a legal term for their property, possessions, investments, creditors, and other obligations. Although estate originally meant any land and buildings they owned. A deceased estate notice begins the process of winding up the estate.
After death the estate acquires additional creditors, in terms of people and organizations with claims on the estate in their capacity as heirs. The law lays down the following in terms of distribution of the assets of the estate:
- People and organizations already owed money at the time of death have priority claims over the estate.
- Heirs according to the will, or the laws of succession have claims over the residual after settling all debts.
A deceased estate notice reaches out to the first group and invites them to submit their claims.
An Empty Chair Left Behind (Jill Meaux BY CC 2.0)
Ensuring the Debts of the Estate Are Settled First
The person responsible for distributing an estate to creditors and heirs must therefore first find existing creditors, and close out their entitlement. They must make every reasonable effort to locate them and allow them fair time to come forward. The legally accepted method of doing so is issuing a deceased estate notice.
However, English law is mindful this matter should not drag in indefinitely. Surviving friends and relatives need closure. And moreover there may be heirs desperately in need of their entitlement to afford living on.
Section 27 of the Trustee Act 1925 puts a cap on the process by allowing creditors a minimum of two months to stake their claims, after the date the executor made reasonable efforts to contact them.
The Trustee Act defines reasonable efforts as placing a deceased estate notice in a local newspaper. It’s also wise to repeat the advertisement in the official Gazette, especially if the estate includes property.
Section 27 of the Act then allows creditors two months to find the advertisement, and contact the executor to submit their claim. It’s important to note their rights are potentially open-ended if no advertisements were made.
If You Do Not Post a Deceased Estate Notice …
Placing a deceased estate notice legally fulfills the executor’s duty to make reasonable efforts to contact estate creditors. Failing to do so is not a criminal offence for which they could be prosecuted.
However, The Gazette does warn ‘should a notice not be placed, and a creditor subsequently comes forward after the estate has been distributed, then the executor may have some personal liability for an unidentified debt’.
The Great Fire of London (London Gazette BY Public Domain)
Using The Gazette to Advertise an Estate
Clearly it’s important to place a watertight advertisement in a reputable publication that’s available locally, with proven credibility. The London Gazette to allow it its full name is the most important official journal in the UK, and the nominated method for conveying certain statutory notices.
However, it does not have a large circulation, and indeed is generally unknown to most people in England. Perhaps for this reason it offers a combo service that includes facilitation of additional advertisements in local newspapers. This creates a credible third party record of an executor’s efforts to reach out to estate creditors as follows:
- Make sure you have (a) a grant or probate, (b) letters of administration or (c) a death certificate for the deceased.
- Log on to The Gazette in your role of an executor of a will, or a personal representative of the deceased.
- Select the option to place a deceased estate notice, and complete the details noting the costs you are committing to.
- Follow the option of placing a second newspaper advertisement on the additional services page. Submit and log out.
Advantages of Placing a Deceased Estate Notice
Using The Gazette service helps ensure the advertisement provides the necessary information, and facilitates claims by creditors that existed at the time of death. It is also an assurance the information appears in appropriate publications.
However, the greatest advantage of placing suitable advertisements is this fulfills the executor’s legal obligation to reach out creditors. This in turn should ensure they do not face claims against their own assets in future.
Creditors have two months and one day to make a claim against the estate by following the advice contained in the advertisement. After settling any successful claims the executor may proceed to correctly distribute the remaining assets to the heirs.
Jeffrey Avery – Avery Associates – Probate Specialists – Read Avery Associates reviews
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