Disputed claims

In re K (deceased) ChD TLR 16 April

Alleged creditors had issued proceedings against the estate and other claims had been intimated by potential creditors who had not instituted proceedings and from whom nothing had been heard for many years. In deciding whether to sanction payment by the administrators to admitted creditors, and the subsequent distribution to beneficiaries without reference to disputed and potential creditor’s claims, the court should consider whether any, and if so what, protection should be afforded to the potential creditors. The court sanctioned payment to certain creditors and distribution to beneficiaries without reference to disputed and potential claims, subject to a retention, to fund the defence of any proceedings brought or revived against the estate. The court would be sympathetic to the desire of administrators to be immunised from personal liability and the beneficiaries not to be kept out of their inheritance longer than was necessary, but the court should consider whether any, and if so what, protection should be afforded to the potential creditors and take a practical view. The disputed actions in the present case were prima facie liable to be dismissed for want of prosecution, or struck out.