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A woman died leaving an estate comprising two bank accounts and a freehold property. Her will divided the residue of her estate equally between her son and her daughter.
Five years ago the woman and her son (who was then 22) had a serious argument and her son left the family home. None of the family has seen him since. The personal representatives (PRs) have questioned other relatives and friends to attempt to ascertain the son’s whereabouts but with no success.
Three months ago the PRs placed advertisements complying with s.27 of the Trustee Act 1925 in the London Gazette and in a local newspaper. The PRs have had no responses to these notices from either the woman’s son or anyone claiming to be a creditor of the estate. They propose to distribute the entire residue to the woman’s daughter and pay only the creditors they currently know about.
Which of the following statements best describes the PRs’ protection from claims by creditors and beneficiaries as a result of the enquiries made and s.27 of the Trustee Act 1925 notices placed?
A. The PRs will be protected from claims by new creditors and unknown beneficiaries but not from a claim by the son.
B. The PRs will be protected from claims by new creditors but not from unknown beneficiaries or the son.
C. The PRs will be protected from claims by new creditors, unknown beneficiaries and the son.
D. The PRs will not be protected from claims by new creditors but will be protected from claims by unknown beneficiaries and the son.
E. The PRs will not be protected from claims by new creditors or unknown beneficiaries but will be protected from a claim by the son.
A - The PRs will be protected from claims by new creditors and unknown beneficiaries but not from a claim by the son.
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