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WHAT HAPPENS IF AN ESTATE HAS MORE LIABILITIES OR DEBTS THAN IT HAS ASSETS?
If an estate has more liabilities or debts than assets and cannot fulfil its duties to pay the liabilities, then the estate will be considered insolvent. Just to note the estate still has to be administered correctly and responsibly. This means all assets, as minor as they may be, must be established and documented. The same process must also happen for all liabilities or debts.
The Estate may have significantly more liabilities than assets, or no assets at all, yet the estate must still complete Probate. Most executors or administrators simply fail at this particular point! There are no benefits to them and there is no incentive to complete the process correctly, but this leaves the potentially liable for the debts.
Every single creditor or liability must be individually identified and verified before being signed off. You are not liable for any shortfall in the estate, but if you are the executor or administrator and you then sign off the Probate incorrectly, you are personally liable for any debt a creditor pursues.
Probate Specialist Limited has seen many people sign off on an insolvent estate only to find they are personally liable for a debt later that wasn’t dealt with correctly to start with. If only they had spoken to us first.
During your lifetime
Probate Specialist Limited focuses on completing Probate or Grant of Letters of Administration on insolvent estates with total accuracy and precision.
In as little as a five- or six-minute phone call, we can let you know how to do this yourself or we could complete this on your behalf. All work is carried out by licenced Insolvency Practitioners, experienced in all matters of debt.
In most cases it will not cost you, or the estate, anything for us to complete the service on your behalf.
If we take you on as a client there is a very good chance that it will not cost you a penny. We will complete Probate or acquire the Grant of Administration Letters for you.
