Under the Administration of Insolvent Estates of Deceased Persons Order 1986, SI 1986/1999, r 4(2), reasonable funeral, testamentary and administration expenses have priority over all other unsecured liabilities. For further information,

Consent for alterations We note from this Q&A that the landlord was entitled to refuse consent under the lease covenants, and we assume that the proposed alteration is not an 'improvement' (whereby under section 19(2) of the Landlord and Tenant Act 1927 (LTA 1927) the alterations covenant is deemed to be subject to a proviso that such consent cannot be unreasonably withheld). For more information, see: Alterations and improvements for property

Creditors In accordance with the duties of a personal representative to administer the estate of the deceased under section 24 of the Administration of Estates Act 1925 (AEA 1925), they must ascertain the debts and liabilities of the estate and pay any sums properly due to creditors. See generally: Personal representatives—overview and Estate administration—overview. The administration usually takes place in the period of a year from the death. The usual rule is that creditors take priority over beneficiaries. AEA 1925 s 34 and AEA

A person dies intestate if they die without a valid Will being in place. The Administration of Estates Act 1925 (AEA 1925) sets out the statutory order for the distribution of the estate on intestacy. A person’s right to inherit is determined by fixed rules. Apart from where the deceased leaves a spouse or civil partner and issue (where the estate may be shared if above the fixed net sum), all individuals in the particular class of relatives highest in the priority order will inherit the whole net estate between them. The order of priority in terms of entitlement on intestacy is: • surviving spouse (provided they survive for 28 days)* • children or remoter

Title to apply for letters of administration follows the order of priority in the Non-Contentious Probate Rules 1987 (NCPR 1987), SI 1987/2024, r 22, which relates to those having a beneficial interest in the estate under section 46 of the Administration of Estates Act 1925. In particular, where

On the assumption that the testator died recently the order of priority to take out a grant to their intestate estate follows the entitlement to the estate itself, as set out in the Non-Contentious Probate Rules 1987, SI 1987/2024 (NCPR 1987). In this Q&A the intestate left a surviving adult child A and two adult grandchildren C and D (being the children of the intestate’s predeceased child B). Any person within any category set out in NCPR 1987, SI 1987/2024, r 22(1) may take out the grant if they have a beneficial interest in the estate and they have cleared off in the oath anyone above them in the priority order, subject to a maximum number of four appointments. NCPR 1987, SI

A fully qualified covenant provides that consent must not be unreasonably withheld. However, qualified covenants in any event are deemed to be subject to a proviso that consent is not to be unreasonably withheld under section 19 of the Landlord and Tenant Act 1927 (LTA 1927). Under the Landlord and Tenant Act 1988 (LTA 1988), where a written application is served on a landlord, they owe a positive duty, within a reasonable time to: • give consent, except in a case where it is reasonable not to give consent • serve on the tenant written notice of their decision whether or not to give consent specifying in addition: ◦ if the consent is given subject to conditions, the conditions ◦ if the consent is withheld, the reasons for withholding it The burden of proof is on the landlord to show that they are acting reasonably in withholding consent.

For the purposes of this Q&A we have limited our research to cover the position where an insolvency administration order has not been made, but rather that the insolvent estate is being administered by the personal representatives. As a general introduction to the administration of insolvent estates, see Practice Note: Effect of the debtor's death on an insolvency process Transactions defrauding creditors The creditors may be able to take action if the nomination or payment meets the criteria for a transaction defrauding creditors. Under section 423 of the Insolvency Act 1986 (IA 1986) a cause of action exists against a company or individual for relief following a transaction at an undervalue (TUV) which was undertaken, broadly, with the purpose of putting assets out of the reach of creditors. Such a cause of action may be prosecuted by a creditor or other person

The limitation period for a claim for damages for trespass or nuisance is six years: section 2 of the Limitation Act 1980. A claim should therefore be brought within six years of the start of the wrongful act, in this case

Generally, an award of compensation for unfair dismissal consists of: • a basic award to reflect the fact that the employee has been unfairly dismissed (see Practice Note: The basic award), and • a compensatory award to compensate the employee for financial losses suffered as a result of the unfair dismissal (see Practice Note: The unfair dismissal compensatory award) The compensatory award for unfair dismissal is such amount as the tribunal considers just and equitable in all the circumstances, having regard to the loss sustained by the employee as a result of dismissal, and in so far as that loss is attributable to actions of the employer: • in most cases,

As set out in Q&A: An unfairly dismissed employee is under a duty to make reasonable efforts to obtain alternative employment to minimise, or 'mitigate', his losses. Generally, any earnings he receives from a new job will be set off against any losses claimed. Similarly, any sums received from his employer, such as notice pay or ex gratia payments, will generally be set off against losses. For further information, see Practice Note: The unfair dismissal compensatory award, in particular the sections headed Reduction for failure to mitigate and Deductions for sums received. In Whelan v Richardson, the EAT set out some general observations for employment tribunals to follow when assessing compensation in general: • each case must depend upon its own facts • employment tribunals are charged with doing justice between the parties • compensation is to be assessed in such a way as to compensate the employee,

By section 35 of the Landlord and Tenant Act 1954, in the absence of agreement between the parties, the court determines any other terms, having regard to the terms of the current tenancy, and all the relevant circumstances. Hence, if there is evidence in the market that landlords and tenants are agreeing pandemic clauses, then a court may determine that such a clause should be included in the circumstances of the case because this reflects the terms being agreed