Solicitor issued statutory demand after estate distributed.

[Lord of Chaos]

The solicitors firm who handled my mothers estate has issued a statutory demand for a debt that they have missed, they have admitted it was their mistake but seem to be claiming unjust enrichment. They seem to be totally disregarding their statutory duty as set out in the Trustees act 2000. They also claim they have formally demanded the return of the alleged sum, which they never have.
What are your good folks opinions on the subject?

[MIKE770]

Re: Solicitor issued statutory demand after estate distributed.

trying it on by the sound of it, they are trying to cover their negligence, solicitors in some cases are evil,

[Amethyst]

Re: Solicitor issued statutory demand after estate distributed.

Tagging [MENTION=85500]Peridot[/MENTION] and [MENTION=39710]des8[/MENTION] for you, but for now, how did this creditor get missed ? Is it a creditor the solicitors were unaware of at all at the time of distribution of the estate ( did they advertise in the gazette after the death for creditors?) or was it a simple mistake in not paying them ? Also were the beneficiaries aware of this debt prior to distribution ?

How much is the statutory demand for, what is the debt, and are you the only beneficiary of the estate ?

So far as I am aware the executors are ultimately liable ( and as a professional firm they should hold some kind of executors liability insurance ) however they are obliged to attempt to recoup the incorrectly made payments to settle the estate fully - legally you are obliged to return the mistakenly paid money however you might be able to defend against the claim if the money has already been spent (change of position ) and either way the beneficiaries may have a negligence claim against the solicitors(executors)

But if you can answer the questions above and wait for [MENTION=85500]Peridot[/MENTION] that would be best as my knowledge in this area is v. limited. Depending on the sums you may need to seek formal legal advice.

Oh also what date was the statutory demand served ? ( seems like lovely timing ) - you have to apply to set it aside within 18 days of receipt if the debt is at all disputed and they will have to go through the county court system.

[Lord of Chaos]

Re: Solicitor issued statutory demand after estate distributed.

Thanks Amethyst, the stat demand is for just over 5.1K owed to the DWP. The case was being handled by one solicitor and then passed to another and they admit that this is when it was overlooked. I have never received a demand for the sum as they claim in the stat demand, the nearest to a demand was a letter stating they would be "grateful" if I would return the amount.

[des8]

Re: Solicitor issued statutory demand after estate distributed.

As Amethyst said there is a tight deadline for challenging a stat demand (https://www.gov.uk/statutory-demands...atutory-demand)
It seems as if the solicitors are panicking a bit if they are taking that action following only one letter requesting repayment.

Were the solicitors appointed executors by the testator, or employed by the executor?

Do you know anything about the DWP claim? the what, why , wherefore and has it been accepted without question/challenge?

[Amethyst]

Re: Solicitor issued statutory demand after estate distributed.

Sorry just one more question to add to Des's questions - When was the death, when were the beneficiaries paid out, and when was the DWP approach (to the solicitors presumably )? oh, and did they put a notice in the Gazette ? Have the solicitors paid the DWP ?
What date is the SD ?
Pension Credit overpayment ?

( okay more than one )

[Lord of Chaos]

Re: Solicitor issued statutory demand after estate distributed.

The executors are solicitors in the same firm.
I don't know anything about the DWP overpayment.
The death was November 2015, distribution was July 2017 some 18 months later.
Don't know about the gazette.

[des8]

Re: Solicitor issued statutory demand after estate distributed.

Could you please advise if you are a residuary beneficiary/ if there are other residuary beneficiaries? if the other (if any) residuary beneficiaries have received requests/demands for repayment?
did you receive a copy of the final accounts?
Have you made a complaint to the firm concerned (not the individual) about the way this matter has been handled? (IMO a SD to correct an error on the part of the firm is a bit of a sledgehammer approach before explaining and negotiating a settlement)

[Lord of Chaos]

Re: Solicitor issued statutory demand after estate distributed.

There is another beneficiary who has learning difficulties. I am not in contact with him but I'm assuming he wouldn't have known any better and would have just paid up.
I did go through their complaints procedure but unsurprisingly they found they had done nothing wrong. The last communication I had with them before the SD arrived was requesting contact details for the SRA which they never replied to.
Final accounts were received then two months later notification of their error.

[des8]

Re: Solicitor issued statutory demand after estate distributed.

Rather than complain to SRA about poor service/negligence try the Legal Ombudsman http://www.legalombudsman.org.uk/?po...int-form-legal

Until your last post I was under the impression you had received one letter asking politely for return of the money and then the SD.
Obviously a lot more has passed between you than reported on the forum.
Have you refused flatly to refund the money? If so that could well be the reason for the SD.... but I am surmising.

Other than the fact they made a mistake do you have reasons for not paying the demand?

Have you changed your position i.e. have you disposed of your legacy in a way which makes it irrecoverable e.g. on a holiday?

[Lord of Chaos]

Re: Solicitor issued statutory demand after estate distributed.

The complaint was for a suggestion that they would pass on my details to the DWP if I did not repay.. I also pointed out their statutory duty under the trustees act 2000. And asked them to point me at the section that says I am liable for their mistake.
I have never flatly refused to pay it, just questioned where I was liable and asked them to provide proof of the debt.
Not changed position, I have even put enough aside to pay it if they can provide proof that I am liable for their mistake.

[des8]

Re: Solicitor issued statutory demand after estate distributed.

you are not liable for their error but a creditor to an estate can follow the money to the beneficiaries,
If it is not recoverable from them, then the creditor might have a claim personally against the executor.

[Lord of Chaos]

Re: Solicitor issued statutory demand after estate distributed.

So why do you think they have issued the SD if the creditor should be chasing it.

[des8]

Re: Solicitor issued statutory demand after estate distributed.

I didn't say the creditor "should be chasing it" but that they can.
If creditors request payment from executors I would expect the executors to arrange payment if possible.
If the executors fail the creditor can then follow the money.

Solicitors made a mistake.
One may not profit from another's mistake or no one should be benefited at another's expense a.v. no unjust enrichment.
You have the money... IMO you should pay them.

Always assuming DWP claim was justified.