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« VAT reclaims 1973 to 1997 - reminder | Main | Letters of wishes - confidentiality »
Sunday
Feb152009

Estates & bankrupt legatees

With the Enterprise Act 2002 introducing the quickie bankruptcy, it has become more common in recent years for pressure to be applied to executors to delay the administration of the estate in the hope that it will outlive a legatee's bankruptcy, and leave the legatee free to inherit post discharge.

Re Hemming (deceased) concerned the position of a legatee under a Will, who was a bankrupt but was discharged prior to the estate administration being completed.  It was held that the right to the residual legacy vested in the trustee in bankruptcy, and would not revest in the legatee until his bankruptcy debts and costs had been cleared.  As such, any delay in administering the estate would be of no effect in defeating the rights of the bankrupt's creditors.

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