Can a bankrupt person be an executor?

In England it is technically possible for a bankrupt person to be the executor of a deceased estate, to apply for a grant of probate or deal with the administration of the deceased’s assets. The rules vary from country to country so appropriate advice should be sought at the outset. Advice should be obtained from a lawyer in all countries where there are assets in an estate with assets abroad or where probate (or equivalent) will be applied for.

Even where it is possible for a person subject to a bankruptcy order to act as executor in the estate, it may not be practical for them to do so.  The executor might be unable to do certain things, for example to sell property owned by the deceased.

You should also give consideration as to whether the executor could be subject to an overseas bankruptcy order. This is because they may not be permitted to act as executor under the foreign bankruptcy rules. It may also be the case that any money coming under their control could become subject to the foreign bankruptcy order!

Beneficiaries of the estate may also be concerned about a bankrupt executor being entrusted with the assets of the estate. They may feel that the bankrupt should not be handling estate money and this may cause issues in the administration.

It is therefore essential when starting work on an estate, to undertake a bankruptcy search in relation to the executors to check whether or not they are bankrupt, so appropriate advice can be provided.

If the executor resides or has recently resided abroad, a foreign bankruptcy search also be carried out in the country where the executor resides (or has recently resided).

If the executor is found to be bankrupt, consideration will need to be given to determine whether the executor can (or should!) continue to act as executor of the estate or whether they will need to renounce this appointment.

Worldwide Lawyers can assist you in undertaking international bankruptcy searches to check whether an executor is bankrupt in their country of residence. We can also assist you in obtaining advice from a recommended lawyer if the estate includes assets abroad.

For more information, bankruptcy searches or recommendations for a foreign lawyer please contact us on 01244 470 339 (from the UK) 0044 1244 470 33 (if calling from outside of the UK) or email us info@worldwidelawyers.co.uk.