Finders International - Overseas Bankruptcy Searches: Protecting PR’s and the Estate

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Overseas Bankruptcy Searches: Protecting PR’s and the Estate

Probate solicitors will be accustomed to dealing with beneficiaries in various instances, and it is important for the estate’s Personal Representatives (PR’s) that due diligence is carried out in all scenarios.

It is the PR’s responsibility to know and checkthe financial status of the beneficiaries beforethe estate is distributed.

Bankrupt beneficiaries, home or abroad,are more common than one might think. It istherefore important that the estate’s PR’s knowwhich steps should be taken in order to protectthemselves and the estate.

WHAT HAPPENS IF A BENEFICIARYIS BANKRUPT? When an individual becomes bankrupt, inmost jurisdictions across the world a ‘Trusteein Bankruptcy’ is established and ultimatelythe individual loses the ability to control theirown assets.

A bankrupt beneficiary has the duty ofinforming their Trustee to any changes totheir monetary and financial circumstances.And although you would like to think that thebeneficiary would inform all relevant parties,this may not always be the case, especiallywith beneficiaries residing abroad.

WHAT ARE THE POSSIBLECONSEQUENCES FOR PERSONALREPRESENTATIVES? If a bankruptcy order is in place and thebeneficiary did not notify either their Trusteeor the estate’s PR’s, the money will have beendistributed to the wrong person, a scenariowhich can have serious consequences.Those that do not follow the correct Probatedistribution guidelines could face legal action.

For this reason, it is important that theappropriate checks are made beforehand.

HOW CAN PERSONAL REPRESENTATIVE’SPROTECT THEMSELVES? Because the repercussions of distributing toa bankrupt individual are not worth the risk,the Solicitors Regulation Authority encouragesolicitors to carry out due diligence for both

domestic and international beneficiaries.

Finders International provide a fast and easy‘Overseas Bankruptcy Search’ service coveringnumerous jurisdictions worldwide, utilisingvarious international insolvency databases andlocal research agents.

We also consistently maintain ourunderstanding of the variations in foreigninsolvency law, keeping up to date withchanges across the world to insolvency andbankruptcy proceedings for individuals.

For further information on the ‘OverseasBankruptcy Search’ service or any questionsyou may have regarding bankruptcyoverseas, please contact FindersInternational’s Legal Support Services team:

USER Andrew Ritson: Andrew.ritson@findersinternational.co.uk

USER Roisin O’Farrell: Roisin.OFarrell@findersinternational.co.uk

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