A bankrupt man who transferred a sizeable portion of the inheritance he received from his father's estate to friends and family has recently been jailed for breaking insolvency law. He owed a prep school a large sum in unpaid fees and had promised to repay it upon receipt of his inheritance. 

Although the report on the gov.uk website doesn't mention who was responsible for administering the estate, it reminded me of how important it is for a personal representative (executor or, where there is no Will, administrator) to carry out bankruptcy searches and insolvency services searches to ensure that they aren't paying legacies or monies from the residuary estate to anybody who is bankrupt or subject to any other insolvency proceedings. Reliance on the beneficiary's word isn't enough. Very often, for example, family members are the last to know of somebody's financial difficulties.

Administering an estate without any professional advice can sometimes lead to unforeseen, difficult consequences. Please get in touch with our team for advice or support with dealing with your responsibilities.