Issues can arise when property owners pass away and, for one reason or another, the estate remains unadministered. A common reason for this may be Executors or family members feel it is too difficult or emotionally challenging to deal with their loved one’s estate, or they cannot be located.
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Contentious issues can also arise which will delay the administration of the estate and the disposal of any property. When these circumstances arise, properties belonging to the deceased estate can sit empty for months or even years leading to these properties falling into disrepair, causing problems to the local community and council.
In an intestate estate, it is important to locate the persons entitled to benefit from an estate and therefore entitled to apply for a Grant of Letters of Administration. The sooner that these persons have
been located, the sooner the Grant can be issued and the properties in the estate dealt with. The order of priority on entitlement to apply for a Grant in an intestate estate is set out in the Non Contentious Probate Rules 1987.
If an Executor of a Will, for whatever reason, is not undertaking their duties effectively or in a timely manner then an application can be made to court to remove them or have them passed over in order for
the estate to be administered, including any property.
Obtaining a Grant as a Creditor
When a deceased property owner owed a debt to another person or institution, then that creditor may apply for a Grant under rule 22(3) of the Non Contentious Probate Rules 1987 provided that the other categories entitled to apply for a Grant have been cleared off.
In addition to this, a creditor may also apply for a Grant when it is not possible to clear off the other categories of higher entitlement by making an application to court to remove, substitute or pass over a personal representative. Any such application must include evidence as to why it is “necessary and expedient” to appoint the creditor as the personal representatives. This is often the case where an Executor has not applied for a Grant.
A creditor can include a local authority for outstanding debts including Council tax and Business Rates.
Case Studies: Deceased Property Owners
We assisted a local authority on a case involving a deceased property owner, who owned multiple properties, including commercial premises, where the sole Executor failed to administer the estate in a timely fashion. This caused all 3 properties to fall into signicant disrepair. The local authority was owed debts relating to Council tax and Business Rates which they were unable to realise. We applied to court to have the Executor removed and obtained an order for the local authority to be appointed as the personal representative of the estate. This allowed the properties to be sold and the debts due to the local authority to be paid.
