Inheritance and bankruptcy

[Grandad Gaz]

I received an email from the solicitors dealing with my late aunt's estate (she had no children of her own)
It's being split between myself and two cousins, so not a vast amount. probably about £70k each.

What do you make of the following part?

Please can you kindly confirm if you would like me to undertake a Bankruptcy Search for £6 plus VAT, against your co-Residuary Beneficiary, xxxxxxxx. If any payments are made to a beneficiary who is bankrupt, then yourselves as executors would be held liable to pay such sums forward to the trustees in bankruptcy. Therefore, you may wish to undertake a Bankruptcy Search against xxxxxxxx

[Rufus Stone]

For the sake of £6 why not protect yourself?

[Pit Pony]

Why are they even asking? If you've instructed them to act professionally on behalf of the executors, surely that would be in with the price of the work? They've probably charged you for sending you the letter.

[Grandad Gaz]

I have paid the £6 fee.

The bit in bold is the confusing part. If they are bankrupt, then I would also have to pay the creditors out of my own money!
Is that how it is?

[rlg43p]

I read it as the executor would be responsible for paying the bankrupt person's share of the inheritance directly to the peeps who were due the money; not your share.

[alscar]

Grandad Gaz said:

I received an email from the solicitors dealing with my late aunt's estate (she had no children of her own)
It's being split between myself and two cousins, so not a vast amount. probably about £70k each.

What do you make of the following part?

Please can you kindly confirm if you would like me to undertake a Bankruptcy Search for £6 plus VAT, against your co-Residuary Beneficiary, xxxxxxxx. If any payments are made to a beneficiary who is bankrupt, then yourselves as executors would be held liable to pay such sums forward to the trustees in bankruptcy. Therefore, you may wish to undertake a Bankruptcy Search against xxxxxxxx

Quite normal if not slightly irritating given other fees already being paid but relative to an issue £6 is must do.
I had this recently and had to ask my 3 children and my sister the very same question.

[Simpo Two]

Grandad Gaz said:

If any payments are made to a beneficiary who is bankrupt, [b]then yourselves as executors would be held liable to pay such sums forward to the trustees in bankruptcy

That sounds like they get paid twice, once by the solicitor and again by the Executor...

If somebody is bankrupt and they inherit £70K is that a problem?

[Sheepshanks]

Grandad Gaz said:

I have paid the £6 fee.

The bit in bold is the confusing part. If they are bankrupt, then I would also have to pay the creditors out of my own money!
Is that how it is?

Are you an Executor? If not then the language used doesn't make sense. I suspect the solicitor has to do it, and wants to charge you for it. As others have suggested, bearing in mind the fees they'll be charging anyway, it seems more costly to ask than to just do it. Perhaps they charge a fee for asking the question.

[Grandad Gaz]

Sheepshanks said:

Grandad Gaz said:

I have paid the £6 fee.

The bit in bold is the confusing part. If they are bankrupt, then I would also have to pay the creditors out of my own money!
Is that how it is?

Are you an Executor? If not then the language used doesn't make sense. I suspect the solicitor has to do it, and wants to charge you for it. As others have suggested, bearing in mind the fees they'll be charging anyway, it seems more costly to ask than to just do it. Perhaps they charge a fee for asking the question.

Sorry, my fault. I should have said I was the executor!

[Mr Whippy]

So if one of the cousins is bankrupt (does this expire?) then their inheritance has to be paid to the bankruptcy debt by the executor.

It’s a bit of an annoying duty, but if they are the rules then I wouldn’t want to get £70,000 of money going awry on my shoulders.


If the estate is really £210,000 or so then a few £k on professional fees doesn’t seem unreasonable?