Administration actions

Administration actions—personal representatives and the deceased's liabilities

During their lifetime a testator will enter into any number of obligations to third parties. As it is not usually possible to know precisely when you are going to die it is generally the case that a number of those obligations remain to be performed after death. The personal representatives will take the positive assets of the estate but these will be subject to the negative obligations. However, not all those obligations will fall to be concluded by the personal representatives.

Commonly found obligations are:

1. •

   personal contracts—these will generally cease on the death of one of the parties but there are exceptions to this rule

2. •

   taxation liabilities

3. •

   Will contracts and promises—while the promise of a gift is not effective unless made by deed, or delivered, the absence of either or both of these conditions may not be fatal

4. •

   partnerships obligations

There may be additional hidden liabilities such as personal guarantees, subsisting claims, company obligations and obligations as a result of Lloyds syndicate membership.

See Practice Note: Administration actions—personal representatives and the deceased's liabilities.

Administration actions—personal representatives...