What is a section 27 notice?
A Section 27 notice is an advertisement placed in the Gazette or local newspaper by the executor or personal representative of a person who has passed away. This is done to inform potential creditors that the estate Will be going through probate and soon distributed.
By notifying potential creditors using a Section 27 notice, it provides a fair opportunity to claim back any monies or property owned by the deceased before the estate is distributed to any beneficiaries.
It is called a Section 27 notice because it directly forms part of Section 27 of the Trustee Act 1925 which we have included details of below:
1. With a view to the conveyance to or distribution among the persons entitled to any real or personal property, the trustees of a settlement, trustees of land, trustees for sale of personal property or personal representatives, may give notice by advertisement in the Gazette, and in a newspaper circulating in the district in which the land is situated and such other like notices, including notices elsewhere than in England and Wales, as would, in any special case, have been directed by a court of competent jurisdiction in an action for administration, of their intention to make such conveyance or distribution as aforesaid, and requiring any person interested to send to the trustees or personal representatives within the time, not being less than two months, fixed in the notice or, where more than one notice is given, in the last of the notices, particulars of his claim in respect of the property or any part thereof to which the notice relates.
2. At the expiration of the time fixed by the notice the trustees or personal representatives may convey or distribute the property or any part thereof to which the notice relates, to or among the persons entitled thereto, having regard only to the claims, whether formal or not, of which the trustees or personal representatives then had notice and shall not, as respects the property so conveyed or distributed, be liable to any person of whose claim the trustees or personal representatives have not had notice at the time of conveyance or distribution; but nothing in this section—
(a) prejudices the right of any person to follow the property, or any property representing the same, into the hands of any person, other than a purchaser, who may have received it; or
(b) frees the trustees or personal representatives from any obligation to make searches or obtain official certificates of search similar to those which an intending purchaser would be advised to make or obtain.
3. This section applies notwithstanding anything to the contrary in the Will or other instrument, if any, creating the trust.
Is it a legal requirement to post a Section 27 notice?
Whilst there is no set legal requirement to place a Section 27 notice, it is recommended that the personal representative does so at the start of the probate process to protect themselves from personal liability should a creditor makes a claim at a later date.
If a Section 27 notice has been placed in the Gazette or local newspaper, then the personal representative/executor Will not be held liable if any debts or claims come forward in the future.
How to take out a Section 27 notice
Usually, a Section 27 notice is placed in the Gazette or a newspaper local to where the deceased person lived, or owned property or business. If you are unsure of how to do this, you can find guidance on the Gazzette website.
You Will need to provide a death certificate, grant of probate or letters of administration when taking out the Section 27 notice and about £200 to cover the costs which can be claimed back from the estate as an administration expense.
Creditors Will have two months to make a claim following the Section 27 notice being placed and once this period has passed the executor or administrator is able to start distributing the deceased’s estate in line with the Will or rules of intestacy.
Need help with Probate after a loved one has passed away?
The thought of having to deal with a loved one's estate after they have passed away can sometimes be too much to bear, but our team at Wills Services are on hand to help when it comes to the process of probate.
Make use of our Probate services today to remove any worry you might have.
