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Executor refuses to pay creditor

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  • Executor refuses to pay creditor

    I have an issue with one of two executors of my uncles will.
    Executor one was a friend of my uncle, the other executor is my father (executor 2).
    I am a creditor of the estate.
    My uncle died 3 years ago and his relatively simple estate (around 500K including a property) has not been finalised – probate was granted a year ago and house sale has been halted by executor one. There is money readily available in a bank account to which both executors have access (jointly) and have been using.
    Executor one is dragging their heels and refuses to pay me my outstanding debt (some of which was incurred prior to my uncle’s death) and has made many excuses for why I should not be paid. The other executor (my father) has agreed I am to be paid and has confirmed all my invoices are in order and correct.
    As a creditor of my uncle’s estate, the amount I am owed has increased as the administration is taking so long, as the two executors have not been able to agree on many issues.
    I have sent letters of claim to both executors (and a solicitor who was dealing with the probate and some administration, for clarity this solicitor ignored my letters and emails about my claim, but they are not dealing with the estate any longer, just to two executors).
    I have written another letter of claim recently to executor one, they replied and told me there isn’t enough money to pay me and they don’t think I should be reimbursed.
    My father has confirmed to me that there is plenty of money available to pay me (and the other debts owed by the estate). Executor one has refused to pay other creditors too and falsely told them there is not enough money available to pay them until the estate has been administered. I understand this may sound confusing, but executor one’s understanding is poor (possibly intentionally so, as they are themselves are a solicitor).
    I believe their intentions are not in the best interests of creditors nor beneficiaries.
    This is just one example of this behaviour and could list many other situations that I believe they have not been acting properly as an executor.
    I feel stuck and not sure what I can do to be reimbursed by the estate, can you help?
    Tags: None

  • #2
    Hi
    Welcome to LB
    Please read the article "Can I claim against an estate if the deceased owes me money?" at www.frettons.co.uk
    You have already contacted the executors and provided proof that the deceased owed you money
    You need to start a court claim against the executors acting on behalf of the estate
    If your claim is under £10k it should be allocated to the small claims track and you may decide to represent yourself in court to save legal fees

    Comment


    • #3
      As Peza advises start a claim against the estate (small claims court/MCOL if under £10,000). Any claim you could have made against your uncle before his death can now be brought against his executors as a claim payable from his estate. The evidence to support your claim and the procedure is the same as if your uncle had still been alive. You will need to check out the exact wording you need to use on your claim form to identify the defendant, the court helpline should be able to assist. You can download a copy of the grant of probate here to check exactly the names of the executors recorded on it. Search probate records for documents and wills (England and Wales) - GOV.UK (www.gov.uk)

      My understanding is that if there are two Executors named in the grant of Probate you have to bring the claim against them both. You can't bring it just against the one you consider is being obstructive.

      You say you already issued letters of claim and really you should have followed through on those. You weaken your position by issuing a PAPLOC and then not following it through. You might want to issue a new PAPLOC addressed to both executors and then go straight to issuing proceedings if the money is not paid to you within the deadline.
      All opinions expressed are based on my personal experience. I am not a lawyer and do not hold any legal qualifications.

      Comment


      • #4
        Thank you for your advice
        I understand that I can apply to the claims court, but the obstructive executor asked me not to bring proceedings against them as they believe me to be negligent and they are waiting to hear from the probate court (which they have not applied to yet) for advice.
        They have asked me numerous questions about the debt and said I was incorrect in the amount of the claim (I was not). Then they stated the estate does not have enough to pay me (it does). Which has made me feel bullied and question if I should continue with a claim as I am apprehensive of how this will play out in court as they are a solicitor, so I feel on the back foot.
        One of the other reasons I had not made a claim sooner was because my father is the other executor, and he has agreed that I should be paid, so didn’t want to put him in that position of court proceedings.
        I will now finalise my claim with the claims court against the estate rather than the individual executor.

        Comment

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