One of the less obvious effects of the recession is the impact
it has had on deceased estates due to the continuing fall in
property prices. Also, as elderly people struggle to make ends meet
and seek to cover their expenses by taking out equity release
schemes or by borrowing from banks and credit cards, at the time of
death many properties are no longer free of mortgages. Values of
shares have also been affected and often dividends which were being
used to supplement income have virtually vanished over night.
Solicitors instructed by personal representatives to deal with
obtaining a grant of probate and the administration of the estate
are sometimes left in a difficult position. The estate might take
years to conclude and during that period the value of the assets
may well have diminished to such an extent that the estate becomes
insolvent. If the value of the property falls, there may be
insufficient funds within the estate to meet all the liabilities.
Solicitors
