/ PracticeConsiderations

Client doesn't want to advertise for creditors? Have them sign an Acknowledgement and Direction

If your client is an estate trustee who doesn't want to advertise for creditors, it's best practice to have them sign an Acknowledgement and Direction confirming they were warned of the risks.

Some clients want to distribute the proceeds of an estate without publishing a Notice to Creditors because they're sure the deceased had no outstanding debts. But if they're mistaken - and this happens - then the estate trustee can be held personally liable for the full amount of the deceased's debt.

If your client is prepared to take this risk, it's best practice to have them sign an Acknowledgement and Direction confirming that you reviewed and explained the risks and potential liability inherent in distributing the proceeds of an estate without publishing a Notice to Creditors.

Download our template Acknowledgement and Direction form, here.

The signed Acknowledgement and Direction gives your client an opportunity to confirm if they're comfortable with the risk of personal liability. And it provides you with a record for your file confirming that you had this conversation with your client.

Publishing a notice to creditors on NoticeConnect.com is court-approved and fully protects the estate trustee from liability for outstanding debts of the deceased. It costs a one-time fee of $130 plus HST and can be disbuributed to the estate.

Patrick Hartford

Patrick Hartford

Patrick is the Founder of NoticeConnect.

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