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Administration of Estates Act 1971
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10 Retainer, preference and the payment of debts by personal representatives.E+W
(1)The right of retainer of a personal representative and his right to prefer creditors are hereby abolished.
(2)Nevertheless a personal representative—
(a)other than one mentioned in paragraph (b) below, who, in good faith and at a time when he has no reason to believe that the deceased’s estate is insolvent, pays the debt of any person (including himself) who is a creditor of the estate; or
(b)to whom letters of administration had been granted solely by reason of his being a creditor and who, in good faith and at such a time pays the debt of another person who is a creditor of the estate;
shall not, if it subsequently appears that the estate is insolvent, be liable to account to a creditor of the same degree as the paid creditor for the sum so paid.
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