What is a Section 27 Notice in Probate?
19 December 2019 by Jane Golding
Section 27 of the Trustee Act 1925 enables Trustees or Personal Representatives to protect themselves from liability against any claims from Creditors and/or Beneficiaries.
Section 27 Notices are normally placed by Professionals such as Solicitors and Professional Executors but it is possible for anyone to place a Section 27 Notice. The Costs involved in placing the Notices are in the region of £200.00. The cost of the Notice would be classed as an Expense of the Estate and therefore it would be payable from the Estate.
A Section 27 Notice is an Advertisement that the Personal Representative / Trustees place in the Gazette and Local Newspaper to the Deceased. This is to inform any potential creditors that the Estate is soon going to be distributed and this enables the creditors an opportunity to claim back money or property that they are owed before the Estate is distributed.
A Section 27 Notice is also called Statutory Advertisements. The timeframe of the Notice is two months and allows time for anyone to come forward and claim their interest in the Estate. Any creditors who have failed to come forward during this timeframe cannot then hold the Personal Representative liable for the unpaid debt. If the Personal Representative does not place a Section 27 Notice, then they could be held personally liable to settle the outstanding debt with the creditor.
It is not a legal requirement for a Personal Representative to place a Section 27 Notice, however, by placing the Notice the Personal Representative will be protected from any personal liability if a creditor does come forward and makes a claim further down the line. The Creditor will still be entitled to claim the amount owed from the Beneficiaries in the Estate.
Section 27 does not override a person’s legal right to make a claim against the Estate under the Inheritance (Provision for Family and Dependants) Act 1975.
If Fisher Jones Greenwood can assist you in the Administration of an Estate please contact us on 01206 700113 or email [email protected] to arrange a mutually convenient appointment.
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