When deceased estate and insolvency collide

HOW TO NAVIGATE INSOLVENT ESTATES AND PROTECT YOURSELF.

Solicitors acting as estate administrators often come to Worrells when the estate has insufficient funds to pay all its debts—i.e. the estate is insolvent. They may be appointed by the court or their clients acting as executors of deceased estates (let's call this role a Legal Personal Representative or “LPR”). Occasionally, the deceased has also been acting as the sole director and shareholder of a company that is also insolvent. Naturally the LPR will begin to receive phone calls from all of those creditors (personally or of the company) who, no matter how sympathetic to the situation they are, will soon—quite rightly—be wanting their debts repaid.