Risks to Executors of not getting legal advice on Deceased Estates

Clients A and B came to Wollerman Shacklock Lawyers to assist with obtaining a Grant of Probate for their late father’s estate. They did not want to incur any more legal fees than necessary.

A Grant of Probate was obtained, and advice was given to the Clients to advertise for Creditors in case the Estate has any liabilities. The clients did not want to incur legal fees for this and were adamant that their father had no liabilities.

After receiving our advice on the risks to them of not identifying any and all liabilities of the Estate, the Executors reluctantly instructed our office to advertise for creditors. To the surprise of the Executors, numerous creditors wrote to the Estate requesting payment of monies owed to them. Luckily Clients A and B had followed our legal advice and had not distributed the Estate, and the creditors were paid from the Estate funds.

Risk to Executor: Had the Executors remained adamant there was no need to advertise for creditors and distributed the Estate, they could have been held personally liable for the debts owing from the Estate. This could have amounted to a lot more than just the initial amounts owing.