Adrian Corbould: Did you know as an executor, you can be sued personally so your own assets are at stake after you distribute the estate? How do you stop it? I’m Adrian Corbould, Accredited Specialist, Wills & Estates at Turnbull Hill Lawyers. Being an executor is an arduous task, you have to gather in all the assets and distribute them perfectly in accordance with the deceased’s last Will so all the beneficiaries get what they’re meant to receive.
Now, you also have
to pay out debts of the estate, but you may not know for certain if or who is
owed money. One way around this is to comply with Section 93 of the Succession
Act. What doing that is, is five things. You have to do five things, and if you
do them all, a creditor cannot come after you personally after you distribute
the estate to get their debt paid. The five things.
The first one is
you have to wait for six months after the deceased’s death before you
distribute. Second thing is you have to put an advertisement indicating that
you intend to distribute the estate. Thirdly, the notice has to indicate that
you will not distribute until 30 days have passed from publishing that notice.
Fourth thing is that time has to pass before you distribute. The fifth thing is
you cannot be on notice of any family provision claim.
If you do all
those things and a creditor, for example, pops up and says, “Oh, I am owed
money by the estate,” you are legally protected. As in, they cannot claim
from your personal assets. This is very important because if a creditor was
owed say a million dollars and you had not done these things, you could be
personally accountable, you could be personally wiped out, so these are things
you’ve got to watch for.
Sometimes if I think someone might be making a family provision claim, but hasn’t raised their intention to do so in the first six months, I advise to wait 12 months, but each case falls on its own facts. I hope that’s been of some use today, we’ll talk again next time.